RE Post license 301
Negligent Misrepresentation - CORRECT ANSWER-If a broker unintentionally
misinforms a third party in a real estate transaction concerning a material fact,
and if the broker "should reasonably have known" the truth of the matter.
Puffing - CORRECT ANSWER-The practice of boasting about a property's
features, often to the point of exaggeration
The Reasonableness Standard - CORRECT ANSWER-Whether a broker has a
duty to discover and particular material fact depends on whether a "reasonably
knowledgeable and prudent broker" would have discovered the fact in the course
of the transaction and acquiring information about the property
Exterior Measurements - CORRECT ANSWER-The amount of living area and
other area in dwellings (excluding condos)
Living Area Criteria - CORRECT ANSWER-Heated, finished, directly accessible
from other living area
HLA - CORRECT ANSWER-Count stairs in both area totals (1st and 2nd floor)
Undisclosed Dual Agency - CORRECT ANSWER-Prohibited by both case law
and the NC RE license law, both of which require agents representing principals
with adverse interests to obtain informed consent of both principals.
Material Facts that must be disclosed - CORRECT ANSWER-Facts about the
property itself, facts that relate directly to the property, facts directly affecting the
principals ability to complete the transaction, facts that are known to be of special
importance to a party
Unsolicited Advertisement - CORRECT ANSWER-any material advertising the
commercial availability or quality of any property, goods, or services which is
transmitted to any person without that person's prior invitation or permission
Negligent Misrepresentation - CORRECT ANSWER-If a broker unintentionally
misinforms a third party in a real estate transaction concerning a material fact,
and if the broker "should reasonably have known" the truth of the matter.
Puffing - CORRECT ANSWER-The practice of boasting about a property's
features, often to the point of exaggeration
The Reasonableness Standard - CORRECT ANSWER-Whether a broker has a
duty to discover and particular material fact depends on whether a "reasonably
knowledgeable and prudent broker" would have discovered the fact in the course
of the transaction and acquiring information about the property
Exterior Measurements - CORRECT ANSWER-The amount of living area and
other area in dwellings (excluding condos)
Living Area Criteria - CORRECT ANSWER-Heated, finished, directly accessible
from other living area
HLA - CORRECT ANSWER-Count stairs in both area totals (1st and 2nd floor)
Undisclosed Dual Agency - CORRECT ANSWER-Prohibited by both case law
and the NC RE license law, both of which require agents representing principals
with adverse interests to obtain informed consent of both principals.
Material Facts that must be disclosed - CORRECT ANSWER-Facts about the
property itself, facts that relate directly to the property, facts directly affecting the
principals ability to complete the transaction, facts that are known to be of special
importance to a party
Unsolicited Advertisement - CORRECT ANSWER-any material advertising the
commercial availability or quality of any property, goods, or services which is
transmitted to any person without that person's prior invitation or permission
