Post 301-Broker Relationships and
Responsibilities Exam Questions With Correct
Answers
Which of the following statements is FALSE regarding Paragraph 11, "Earnest Money"?
- 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? - 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? - ANSWER-Exclusive agency listing agreement.
All of the following are true as to what License Law requires a BPO to contain -
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: - 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.
When representing a seller, the agency agreement with the seller must be in writing: -
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: - 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 - 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: - 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: - 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? - 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.
X An oral buyer agency agreement is not binding; thus, the broker has no fiduciary
duties to the buyer until a written agency agreement is signed.
Oral buyer agency agreements may not be exclusive, thereby allowing the buyer to
work with multiple brokers simultaneously
Oral buyer agency agreements are no definite time period and may be terminated at
any time by either party.
To work with a buyer as a seller subagent, a broker who is not affiliated with the listing
company must have consent from all of the following: - ANSWER-The buyer-customer.
The listing company.
The seller-principal.
What does using NCAR's Form 203, Non-Exclusive Buyer Agency Agreement
accomplish? - ANSWER-It obligates the buyer-client to pay the buyer-agent company if
the listing company/seller refuses to share.
Which of the following is FALSE? A buyer agent/broker: - ANSWER-x Is not required to
advise or counsel an experienced investor-buyer in a transaction.
Should assess the needs and experience levels of their client.
Should realize that the less experienced the buyer, the more guidance and counseling
may be required by the buyer-agent.
Is never relieved of their duties to discover and disclose material facts or honor their
fiduciary obligations based on the client's level of expertise.
All of the following are true about NCAR Form 201: - ANSWER-Only Realtor® members
may use the form.
Responsibilities Exam Questions With Correct
Answers
Which of the following statements is FALSE regarding Paragraph 11, "Earnest Money"?
- 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? - 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? - ANSWER-Exclusive agency listing agreement.
All of the following are true as to what License Law requires a BPO to contain -
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: - 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.
When representing a seller, the agency agreement with the seller must be in writing: -
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: - 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 - 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: - 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: - 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? - 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.
X An oral buyer agency agreement is not binding; thus, the broker has no fiduciary
duties to the buyer until a written agency agreement is signed.
Oral buyer agency agreements may not be exclusive, thereby allowing the buyer to
work with multiple brokers simultaneously
Oral buyer agency agreements are no definite time period and may be terminated at
any time by either party.
To work with a buyer as a seller subagent, a broker who is not affiliated with the listing
company must have consent from all of the following: - ANSWER-The buyer-customer.
The listing company.
The seller-principal.
What does using NCAR's Form 203, Non-Exclusive Buyer Agency Agreement
accomplish? - ANSWER-It obligates the buyer-client to pay the buyer-agent company if
the listing company/seller refuses to share.
Which of the following is FALSE? A buyer agent/broker: - ANSWER-x Is not required to
advise or counsel an experienced investor-buyer in a transaction.
Should assess the needs and experience levels of their client.
Should realize that the less experienced the buyer, the more guidance and counseling
may be required by the buyer-agent.
Is never relieved of their duties to discover and disclose material facts or honor their
fiduciary obligations based on the client's level of expertise.
All of the following are true about NCAR Form 201: - ANSWER-Only Realtor® members
may use the form.
