NC Post Licensing 301 Comprehensive
Review Vault: Extensive Question Bank with
Accurate and Detailed Answers, Practical
Examples, Key Topic Summaries, Assessment
Practice & Knowledge Enhancement Topic 3:
Listing Agreements and Buyer Agency
Agreements.
Q1. A listing agreement is a contract between:
A) The buyer and the seller
B) The seller and the broker
C) The buyer and the broker
D) The seller and the attorney
✔ Correct Answer: B
A listing agreement is a contract between the seller (principal) and the real estate broker
(agent).
Q2. Under NC law, a listing agreement must be:
A) Oral with a witness
B) In writing and signed by the seller and the broker
C) Notarized
D) Filed with the Register of Deeds
✔ Correct Answer: B
The Statute of Frauds requires listing agreements to be in writing and signed by the party to be
charged (the seller) and the broker.
Q3. Which of the following is an essential term of a valid listing agreement?
A) The seller's social security number
B) The broker's license number
,C) The property address or legal description
D) The buyer's name
✔ Correct Answer: C
Essential terms include property identification, listing price, commission, term, and signatures.
The buyer is not a party to the listing agreement.
Q4. A listing agreement with no definite expiration date is:
A) Valid indefinitely
B) Void as against public policy
C) Valid for 1 year by default
D) Valid for 6 months by default
✔ Correct Answer: B
A listing agreement must have a definite termination date. An open-ended listing is
unreasonable and unenforceable.
Q5. The maximum reasonable term for a residential listing agreement is generally:
A) 1 month
B) 3 months
C) 6 to 12 months
D) 5 years
✔ Correct Answer: C
While no statutory maximum exists, courts generally consider 6 to 12 months reasonable for
residential listings. Longer terms may be void as unreasonable.
Q6. A seller signs a 2-year listing agreement. A court would likely:
A) Enforce the full 2 years
B) Find the term unreasonable and void
C) Enforce only 6 months
D) Require the seller to pay double commission
✔ Correct Answer: B
Two years is likely unreasonable for a residential listing agreement. Courts will generally not
enforce excessively long terms.
, Q7. A listing agreement contains an automatic renewal clause. Under NC law, such a clause:
A) Is prohibited
B) Is permitted if the seller is given notice and the right to cancel before renewal
C) Is enforced automatically without notice
D) Is void for all real estate contracts
✔ Correct Answer: B
Automatic renewal clauses are allowed but must provide the seller with notice and an
opportunity to cancel before the renewal period begins.
Q8. A listing agreement must state the commission as:
A) A fixed percentage (e.g., 6%)
B) A flat dollar amount
C) Any amount agreed upon by the parties
D) The amount set by the local MLS
✔ Correct Answer: C
Commissions are freely negotiable and may be a percentage, flat fee, hourly rate, or any other
agreed form.
Q9. A listing agreement states "6% commission." The property sells for $300,000. The
commission is:
A) $18,000
B) $15,000
C) $20,000
D) Negotiable after closing
✔ Correct Answer: A
*6% of $300,000 = $18,000. The commission is calculated as stated in the agreement.*
Q10. A listing agreement states "6% commission on the first $100,000 and 3% on the balance."
The property sells for $300,000. The commission is:
A) $6,000 + $6,000 = $12,000
B) $6,000 + $9,000 = $15,000
Review Vault: Extensive Question Bank with
Accurate and Detailed Answers, Practical
Examples, Key Topic Summaries, Assessment
Practice & Knowledge Enhancement Topic 3:
Listing Agreements and Buyer Agency
Agreements.
Q1. A listing agreement is a contract between:
A) The buyer and the seller
B) The seller and the broker
C) The buyer and the broker
D) The seller and the attorney
✔ Correct Answer: B
A listing agreement is a contract between the seller (principal) and the real estate broker
(agent).
Q2. Under NC law, a listing agreement must be:
A) Oral with a witness
B) In writing and signed by the seller and the broker
C) Notarized
D) Filed with the Register of Deeds
✔ Correct Answer: B
The Statute of Frauds requires listing agreements to be in writing and signed by the party to be
charged (the seller) and the broker.
Q3. Which of the following is an essential term of a valid listing agreement?
A) The seller's social security number
B) The broker's license number
,C) The property address or legal description
D) The buyer's name
✔ Correct Answer: C
Essential terms include property identification, listing price, commission, term, and signatures.
The buyer is not a party to the listing agreement.
Q4. A listing agreement with no definite expiration date is:
A) Valid indefinitely
B) Void as against public policy
C) Valid for 1 year by default
D) Valid for 6 months by default
✔ Correct Answer: B
A listing agreement must have a definite termination date. An open-ended listing is
unreasonable and unenforceable.
Q5. The maximum reasonable term for a residential listing agreement is generally:
A) 1 month
B) 3 months
C) 6 to 12 months
D) 5 years
✔ Correct Answer: C
While no statutory maximum exists, courts generally consider 6 to 12 months reasonable for
residential listings. Longer terms may be void as unreasonable.
Q6. A seller signs a 2-year listing agreement. A court would likely:
A) Enforce the full 2 years
B) Find the term unreasonable and void
C) Enforce only 6 months
D) Require the seller to pay double commission
✔ Correct Answer: B
Two years is likely unreasonable for a residential listing agreement. Courts will generally not
enforce excessively long terms.
, Q7. A listing agreement contains an automatic renewal clause. Under NC law, such a clause:
A) Is prohibited
B) Is permitted if the seller is given notice and the right to cancel before renewal
C) Is enforced automatically without notice
D) Is void for all real estate contracts
✔ Correct Answer: B
Automatic renewal clauses are allowed but must provide the seller with notice and an
opportunity to cancel before the renewal period begins.
Q8. A listing agreement must state the commission as:
A) A fixed percentage (e.g., 6%)
B) A flat dollar amount
C) Any amount agreed upon by the parties
D) The amount set by the local MLS
✔ Correct Answer: C
Commissions are freely negotiable and may be a percentage, flat fee, hourly rate, or any other
agreed form.
Q9. A listing agreement states "6% commission." The property sells for $300,000. The
commission is:
A) $18,000
B) $15,000
C) $20,000
D) Negotiable after closing
✔ Correct Answer: A
*6% of $300,000 = $18,000. The commission is calculated as stated in the agreement.*
Q10. A listing agreement states "6% commission on the first $100,000 and 3% on the balance."
The property sells for $300,000. The commission is:
A) $6,000 + $6,000 = $12,000
B) $6,000 + $9,000 = $15,000
