Post-Licensing 301 Broker and Broker
Responsibilities
Courtney, a real estate broker, is at a listing meeting and notices some water
staining under the bathroom sink. She asks the seller about it and they state that
the pipes are leaking but have tried fixing them several times. The seller states
that it really is not a big deal because it doesn't leak that much. Courtney lists the
property for sale and on the Residential Property and Owners' Association
Disclosure Statement (RPOADS), the seller marks "No Representation" for all
items. Which of the following statements is TRUE?
A) Regardless what the seller discloses or does not disclose on the RPOADS,
Courtney must disclose the leak as a material fact.
B) Courtney does not have a duty to disclose the leak because the seller
checked "No Representation" on the RPOADS.
C) Courtney does not have a duty to disclose the leak because North Carolina is
a caveat emptor state.
D) Courtney would be violating her fiduciary duties - CORRECT ANSWER-A)
Regardless what the seller discloses or does not disclose on the RPOADS,
Courtney must disclose the leak as a material fact.
Joan accepted a great job that requires her to relocate quickly. She reached out
to Olga and her firm to list her home for sale and told Olga about her need to sell
quickly. When buyer agents called to make appointments to see Joan's house,
Olga made sure she told them all about Joan's need for a quick sale. Which of
the following statements is TRUE?
A) Olga and her firm were hired to sell the home quickly and used whatever
information they needed to follow through with their fiduciary duties.
B) Olga had a duty to disclose to everyone that Joan needed a quick sale
because it is a material fact.
C) Olga did not have a duty to disclose and violated her fiduciary duties to Joan.
D) Olga had a duty to disclose to everyone that Joan needed a quick sale
because she has a fiduciary duty to get the home sold quickly. - CORRECT
,ANSWER-C) Olga did not have a duty to disclose and violated her fiduciary
duties to Joan.
The fiduciary relationship between principal and agent imposes a duty on the
agent NOT to disclose certain personal information about the client-principal to
third persons without the consent of the principal.
Real estate agents must always disclose ________________________ to
everyone, regardless of whether they are principals (clients) or third parties.
A) Personal information about a principal
B) Motivation of the principal
C) Financial information about a principal
D) Material facts - CORRECT ANSWER-D) Material facts
Real estate brokers are prohibited from making any misrepresentations for failing
to disclose a material fact to any party involved in a real estate transaction (seller,
buyer, lender, attorney, etc.). This fundamental standard applies regardless of
whether the licensee has an agency relationship with the party.
Best Homes Realty lists a property for sale and the listing agent knows that the
heat pump at the listed house does not function properly but tells a prospective
buyer that all mechanical systems and appliances are in good condition. This is
an example of which prohibited conduct?
A) Willful misrepresentation
B) Negligent omission
C) Willful omission
D) Negligent misrepresentation - CORRECT ANSWER-A) Willful
misrepresentation
Willful misrepresentation occurs when a licensee who has "actual knowledge" of
a material fact deliberately misinforms a buyer, seller, tenant, or landlord
concerning such fact.
Jamal, a seller, has decided to list his property. Jamal has noticed that there is a
small leak in the roof. He completed the Residential Property and Owners'
,Association Disclosure Statement (RPOADS) before he listed the property. On
the RPOADS, he marked "No Representation" on question #5, which stated, "Is
there any leakage or other problem with the dwelling's roof?" Which of the
following statements is TRUE?
A) Jamal does not have to complete the RPOADS. It is optional for all sellers in
North Carolina.
B) Jamal has complied with the North Carolina Residential Property Disclosure
Act because it requires a seller (with few exceptions) to complete the form and
the seller can choose "No Representation" to answer the questions.
C) Jamal must disclose the leak in the roof and does not have to complete the
RPOADS.
D) Jamal has not complied with the North Carolina Residential Property
Disclosure Act because he must dis - CORRECT ANSWER-B) Jamal has
complied with the North Carolina Residential Property Disclosure Act because it
requires a seller (with few exceptions) to complete the form and the seller can
choose "No Representation" to answer the questions.
.North Carolina Residential Property Disclosure Act requires a seller (with few
exceptions) to complete the form and the seller can choose "Yes," "No," or "No
Representation" to answer the questions on the form.
Sofia, a listing agent, has just been told by the seller of an issue with the
structural integrity of the house in one of her current listings. The seller has
indicated "No Representation" on the Residential Property and Owners'
Association Disclosure Statement (RPOADS) on all items. Sofia does not inform
Darren, the selling agent, of the defect, and since the defect is hidden, the selling
agent does not discover or disclose the problem to the buyer. According to the
North Carolina Real Estate Commission, who is held responsible for this
nondisclosure?
A) Both Sofia, the listing agent, and Darren, the selling agent
B) The seller
C) Sofia, the listing agent
D) The seller and Sofia, the listing agent - CORRECT ANSWER-C) Sofia, the
listing agent
, There is no obligation of a seller to disclose the defect, though the seller has a
mandatory duty to complete the Residential Property and Owners' Association
Disclosure Statement. Regardless of how the seller completes the form, the
licensee (agent) has a duty to disclose all material facts so the liability rests with
the listing agent. The buyer's agent has the same disclosure obligation; however,
in this question, because the defect was hidden, it does not appear to be an item
for which the selling agent (buyer's agent) had liability.
When Colin listed a property for sale, the seller did not consent to dual agency.
Later, Colin received a call from a prospective buyer who wanted to purchase the
property after viewing it through the drone virtual tour. Colin meets with the buyer
and explains dual agency. They sign a buyer agency agreement and agree to
dual agency. Colin then assists the buyer with preparing an offer. Did Colin
comply with licensing law?
A) No, Colin needs both the buyer and seller to agree to dual agency.
B) Yes, Colin did not need permission from either the buyer or the seller to act as
a dual agent.
C) Yes, Colin got permission from the buyer to act as a dual agent.
D) No, Colin was not required to discuss agency with the buyer. - CORRECT
ANSWER-A) No, Colin needs both the buyer and seller to agree to dual agency.
Colin violated licensing law by practicing dual agency without written consent
from both parties in the transaction. The seller prohibited Colin from practicing
dual agency when he listed the property and violated fiduciary duties to the seller.
Spencer has listed a home with Gigi and her firm for $190,000, and Gigi
suggests to a prospective buyer customer that they submit a low offer because of
the seller's urgent need to sell. The buyer offers $175,000, and the seller accepts
it. In this situation:
A) Gigi has violated her agency relationship with the seller.
B) Gigi's action was acceptable since the seller accepted the offer.
C) Gigi acted properly to obtain a quick offer on the property.
D) Any broker is encouraged to solicit such bids for the property. - CORRECT
ANSWER-A) Gigi has violated her agency relationship with the seller.
Responsibilities
Courtney, a real estate broker, is at a listing meeting and notices some water
staining under the bathroom sink. She asks the seller about it and they state that
the pipes are leaking but have tried fixing them several times. The seller states
that it really is not a big deal because it doesn't leak that much. Courtney lists the
property for sale and on the Residential Property and Owners' Association
Disclosure Statement (RPOADS), the seller marks "No Representation" for all
items. Which of the following statements is TRUE?
A) Regardless what the seller discloses or does not disclose on the RPOADS,
Courtney must disclose the leak as a material fact.
B) Courtney does not have a duty to disclose the leak because the seller
checked "No Representation" on the RPOADS.
C) Courtney does not have a duty to disclose the leak because North Carolina is
a caveat emptor state.
D) Courtney would be violating her fiduciary duties - CORRECT ANSWER-A)
Regardless what the seller discloses or does not disclose on the RPOADS,
Courtney must disclose the leak as a material fact.
Joan accepted a great job that requires her to relocate quickly. She reached out
to Olga and her firm to list her home for sale and told Olga about her need to sell
quickly. When buyer agents called to make appointments to see Joan's house,
Olga made sure she told them all about Joan's need for a quick sale. Which of
the following statements is TRUE?
A) Olga and her firm were hired to sell the home quickly and used whatever
information they needed to follow through with their fiduciary duties.
B) Olga had a duty to disclose to everyone that Joan needed a quick sale
because it is a material fact.
C) Olga did not have a duty to disclose and violated her fiduciary duties to Joan.
D) Olga had a duty to disclose to everyone that Joan needed a quick sale
because she has a fiduciary duty to get the home sold quickly. - CORRECT
,ANSWER-C) Olga did not have a duty to disclose and violated her fiduciary
duties to Joan.
The fiduciary relationship between principal and agent imposes a duty on the
agent NOT to disclose certain personal information about the client-principal to
third persons without the consent of the principal.
Real estate agents must always disclose ________________________ to
everyone, regardless of whether they are principals (clients) or third parties.
A) Personal information about a principal
B) Motivation of the principal
C) Financial information about a principal
D) Material facts - CORRECT ANSWER-D) Material facts
Real estate brokers are prohibited from making any misrepresentations for failing
to disclose a material fact to any party involved in a real estate transaction (seller,
buyer, lender, attorney, etc.). This fundamental standard applies regardless of
whether the licensee has an agency relationship with the party.
Best Homes Realty lists a property for sale and the listing agent knows that the
heat pump at the listed house does not function properly but tells a prospective
buyer that all mechanical systems and appliances are in good condition. This is
an example of which prohibited conduct?
A) Willful misrepresentation
B) Negligent omission
C) Willful omission
D) Negligent misrepresentation - CORRECT ANSWER-A) Willful
misrepresentation
Willful misrepresentation occurs when a licensee who has "actual knowledge" of
a material fact deliberately misinforms a buyer, seller, tenant, or landlord
concerning such fact.
Jamal, a seller, has decided to list his property. Jamal has noticed that there is a
small leak in the roof. He completed the Residential Property and Owners'
,Association Disclosure Statement (RPOADS) before he listed the property. On
the RPOADS, he marked "No Representation" on question #5, which stated, "Is
there any leakage or other problem with the dwelling's roof?" Which of the
following statements is TRUE?
A) Jamal does not have to complete the RPOADS. It is optional for all sellers in
North Carolina.
B) Jamal has complied with the North Carolina Residential Property Disclosure
Act because it requires a seller (with few exceptions) to complete the form and
the seller can choose "No Representation" to answer the questions.
C) Jamal must disclose the leak in the roof and does not have to complete the
RPOADS.
D) Jamal has not complied with the North Carolina Residential Property
Disclosure Act because he must dis - CORRECT ANSWER-B) Jamal has
complied with the North Carolina Residential Property Disclosure Act because it
requires a seller (with few exceptions) to complete the form and the seller can
choose "No Representation" to answer the questions.
.North Carolina Residential Property Disclosure Act requires a seller (with few
exceptions) to complete the form and the seller can choose "Yes," "No," or "No
Representation" to answer the questions on the form.
Sofia, a listing agent, has just been told by the seller of an issue with the
structural integrity of the house in one of her current listings. The seller has
indicated "No Representation" on the Residential Property and Owners'
Association Disclosure Statement (RPOADS) on all items. Sofia does not inform
Darren, the selling agent, of the defect, and since the defect is hidden, the selling
agent does not discover or disclose the problem to the buyer. According to the
North Carolina Real Estate Commission, who is held responsible for this
nondisclosure?
A) Both Sofia, the listing agent, and Darren, the selling agent
B) The seller
C) Sofia, the listing agent
D) The seller and Sofia, the listing agent - CORRECT ANSWER-C) Sofia, the
listing agent
, There is no obligation of a seller to disclose the defect, though the seller has a
mandatory duty to complete the Residential Property and Owners' Association
Disclosure Statement. Regardless of how the seller completes the form, the
licensee (agent) has a duty to disclose all material facts so the liability rests with
the listing agent. The buyer's agent has the same disclosure obligation; however,
in this question, because the defect was hidden, it does not appear to be an item
for which the selling agent (buyer's agent) had liability.
When Colin listed a property for sale, the seller did not consent to dual agency.
Later, Colin received a call from a prospective buyer who wanted to purchase the
property after viewing it through the drone virtual tour. Colin meets with the buyer
and explains dual agency. They sign a buyer agency agreement and agree to
dual agency. Colin then assists the buyer with preparing an offer. Did Colin
comply with licensing law?
A) No, Colin needs both the buyer and seller to agree to dual agency.
B) Yes, Colin did not need permission from either the buyer or the seller to act as
a dual agent.
C) Yes, Colin got permission from the buyer to act as a dual agent.
D) No, Colin was not required to discuss agency with the buyer. - CORRECT
ANSWER-A) No, Colin needs both the buyer and seller to agree to dual agency.
Colin violated licensing law by practicing dual agency without written consent
from both parties in the transaction. The seller prohibited Colin from practicing
dual agency when he listed the property and violated fiduciary duties to the seller.
Spencer has listed a home with Gigi and her firm for $190,000, and Gigi
suggests to a prospective buyer customer that they submit a low offer because of
the seller's urgent need to sell. The buyer offers $175,000, and the seller accepts
it. In this situation:
A) Gigi has violated her agency relationship with the seller.
B) Gigi's action was acceptable since the seller accepted the offer.
C) Gigi acted properly to obtain a quick offer on the property.
D) Any broker is encouraged to solicit such bids for the property. - CORRECT
ANSWER-A) Gigi has violated her agency relationship with the seller.
