Post 301 - Broker Relationships and
Responsibilities Ch. 3 - Section 2: Working
with Residential and Commercial Sellers
All of the following are true as to what License Law requires a BPO to contain -
CORRECT ANSWER-A copy of the assignment request from the person
requesting the BPO.
A description of the subject property and the intended purpose/use of the BPO.
The broker's name, signature, license number, and the effective date of the BPO.
NCREC rules regarding BPOs require all of the following: - CORRECT
ANSWER-A broker must provide at least three comparables.
A broker may perform a BPO for either residential or commercial properties for
sale or lease if they have the necessary market knowledge and experience to be
competent.
A broker is expected to personally inspect the interior and exterior of the subject
property unless waived in writing by the person requesting the BPO.
Which of the following statements is FALSE regarding Paragraph 11, "Earnest
Money"? - CORRECT ANSWER-The listing company should hold any earnest
money paid in the transaction.
If the earnest money is forfeited to the seller under the Offer to Purchase and
Contract, then the listing company is entitled to receive 50% of the earnest
money or the amount of their listing fee, whichever is less.
XX If there is a dispute between the listing company and the seller over the
earnest money, the escrow agent may pay the earnest money to the Clerk of
Court under License Law.
,The Clerk of Court procedure applies to earnest money disputes between the
buyer and seller.
Which of the following is true when acting as a limited listing agent? - CORRECT
ANSWER-The Commission's agency rule doesn't apply because the broker is not
offering full service.
XX The broker must provide and explain the Working with Real Estate Agents
brochure prior to first substantial contact.
The broker and seller may have an oral agreement regarding the few services
the broker will provide.
The broker may disclaim any liability for relying on information from the seller.
Under which type of listing agreement does the seller retain a right to compete
for the commission? - CORRECT ANSWER-Exclusive agency listing agreement.
When representing a seller, the agency agreement with the seller must be in
writing: - CORRECT ANSWER-At the outset of the relationship before providing
any brokerage services.
A valid listing agreement with a real estate company may be terminated for any
of the following reasons: - CORRECT ANSWER-Sale of the property.
Agreement of the parties.
Destruction of the property.
The listing company is the escrow agent holding the earnest money deposit. The
buyer fails to close and all agree that the seller is entitled to the earnest money
under the Offer to Purchase and Contract. The company notifies their seller that
they intend to release 50% of the earnest money to the seller and keep the other
50% for the company pursuant to the listing agreement. The seller objects and
insists on receiving the entire amount of the earnest money. The listing company
should - CORRECT ANSWER-XX Obey the lawful directives of its principal and
refund the entire earnest money to the seller.
, Hold the earnest money in its trust account as disputed funds until the company
and principal-client agree how to divide.
Use the disputed funds procedure under License Law and pay the earnest
money to the Clerk of Court.
Deduct the company's 50% under the listing agreement and pay the other 50% to
the seller-client.
All of the following are true about NCAR Form 203, Non-Exclusive Buyer Agency
Agreement: - CORRECT ANSWER-It creates a non-exclusive agency
relationship with the company so the buyer may still work with multiple agents.
The buyer is not obligated to pay the selling company if the listing company won't
share, but the selling company may terminate the agency agreement if their
buyer-client refuses to compensate them.
The agency agreement must have a definite termination date and the
non-discrimination language because it is in writing.
A buyer who authorizes traditional dual agency in NCAR Form 201
acknowledges all of the following EXCEPT: - CORRECT ANSWER-They
understand that the agent may no longer advise or counsel either principal.
X The agent must disclose all information about each principal to the other.
The client must make their own decisions but may seek legal counsel.
The company's compensation will be greater and will be the amount disclosed in
the agreement.
Which of the following statements about oral buyer agency is FALSE? -
CORRECT ANSWER-Company office policy may prohibit affiliates from entering
into oral buyer agency agreements or provide a time limit, e.g., not more than 5
days.
Responsibilities Ch. 3 - Section 2: Working
with Residential and Commercial Sellers
All of the following are true as to what License Law requires a BPO to contain -
CORRECT ANSWER-A copy of the assignment request from the person
requesting the BPO.
A description of the subject property and the intended purpose/use of the BPO.
The broker's name, signature, license number, and the effective date of the BPO.
NCREC rules regarding BPOs require all of the following: - CORRECT
ANSWER-A broker must provide at least three comparables.
A broker may perform a BPO for either residential or commercial properties for
sale or lease if they have the necessary market knowledge and experience to be
competent.
A broker is expected to personally inspect the interior and exterior of the subject
property unless waived in writing by the person requesting the BPO.
Which of the following statements is FALSE regarding Paragraph 11, "Earnest
Money"? - CORRECT ANSWER-The listing company should hold any earnest
money paid in the transaction.
If the earnest money is forfeited to the seller under the Offer to Purchase and
Contract, then the listing company is entitled to receive 50% of the earnest
money or the amount of their listing fee, whichever is less.
XX If there is a dispute between the listing company and the seller over the
earnest money, the escrow agent may pay the earnest money to the Clerk of
Court under License Law.
,The Clerk of Court procedure applies to earnest money disputes between the
buyer and seller.
Which of the following is true when acting as a limited listing agent? - CORRECT
ANSWER-The Commission's agency rule doesn't apply because the broker is not
offering full service.
XX The broker must provide and explain the Working with Real Estate Agents
brochure prior to first substantial contact.
The broker and seller may have an oral agreement regarding the few services
the broker will provide.
The broker may disclaim any liability for relying on information from the seller.
Under which type of listing agreement does the seller retain a right to compete
for the commission? - CORRECT ANSWER-Exclusive agency listing agreement.
When representing a seller, the agency agreement with the seller must be in
writing: - CORRECT ANSWER-At the outset of the relationship before providing
any brokerage services.
A valid listing agreement with a real estate company may be terminated for any
of the following reasons: - CORRECT ANSWER-Sale of the property.
Agreement of the parties.
Destruction of the property.
The listing company is the escrow agent holding the earnest money deposit. The
buyer fails to close and all agree that the seller is entitled to the earnest money
under the Offer to Purchase and Contract. The company notifies their seller that
they intend to release 50% of the earnest money to the seller and keep the other
50% for the company pursuant to the listing agreement. The seller objects and
insists on receiving the entire amount of the earnest money. The listing company
should - CORRECT ANSWER-XX Obey the lawful directives of its principal and
refund the entire earnest money to the seller.
, Hold the earnest money in its trust account as disputed funds until the company
and principal-client agree how to divide.
Use the disputed funds procedure under License Law and pay the earnest
money to the Clerk of Court.
Deduct the company's 50% under the listing agreement and pay the other 50% to
the seller-client.
All of the following are true about NCAR Form 203, Non-Exclusive Buyer Agency
Agreement: - CORRECT ANSWER-It creates a non-exclusive agency
relationship with the company so the buyer may still work with multiple agents.
The buyer is not obligated to pay the selling company if the listing company won't
share, but the selling company may terminate the agency agreement if their
buyer-client refuses to compensate them.
The agency agreement must have a definite termination date and the
non-discrimination language because it is in writing.
A buyer who authorizes traditional dual agency in NCAR Form 201
acknowledges all of the following EXCEPT: - CORRECT ANSWER-They
understand that the agent may no longer advise or counsel either principal.
X The agent must disclose all information about each principal to the other.
The client must make their own decisions but may seek legal counsel.
The company's compensation will be greater and will be the amount disclosed in
the agreement.
Which of the following statements about oral buyer agency is FALSE? -
CORRECT ANSWER-Company office policy may prohibit affiliates from entering
into oral buyer agency agreements or provide a time limit, e.g., not more than 5
days.
