POST LICENSING 301 NC STUDY
QUESTIONS
60+ (Updated for 2026) Exam Prep Pack | A+ Questions & Verified Answers
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📋 DOCUMENT OVERVIEW 62 Qs
This document, "Post licensing 301 NC study questions ," covers specific topics including real estate
agency status disclosure, dual agency, loyalty, and full disclosure of financing terms, as well as foreclosure
disclosure and contract termination. Each question comes with correct answers and detailed explanations,
allowing students to study, review, and understand these concepts for exam preparation . By utilizing
this document, students can gain a comprehensive review of key real estate concepts and develop a deeper
understanding of their application in practice.
✓ Verified Answers ✓ Exam Ready ✓ Study Guide
Trusted by thousands of students and professionals worldwide
EXAM QUESTIONS
QUESTION 1
When must a seller's agent or subagent initially disclose agency status to a buyer?
CORRECT ANSWER
before buyer and buyer's agent discuss motivation and financial information
RATIONALE: This answer is correct because the Real Estate Settlement Procedures Act (RESPA) and Fair Housing Act
require a seller's agent or subagent to disclose their agency status as soon as possible, but before sensitive information
such as motivation and financial details are shared, to maintain transparency and avoid potential conflicts of interest. By
disclosing their agency status beforehand, buyers can make informed decisions about their representation and potential
biases that may impact the transaction.
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, QUESTION 2
seller's subagent
CORRECT ANSWER
no written or oral buyer agency
RATIONALE: A seller's subagent is an agent who represents the seller and owes fiduciary duties to the seller, but unlike a
seller's agent, they do not have a direct agreement with the seller, rather, they are appointed by the seller's agent. In this
scenario, the seller's subagent does not have a disclosed principal relationship with the buyer, hence "no written or oral
buyer agency" is accurate because the subagent's loyalties remain solely with the seller.
QUESTION 3
OLDCAR
CORRECT ANSWER
obedience
loyalty
disclosure
confidentiality
accounting
reasonable care
RATIONALE: The correct sequence, OLDCAR, represents the key concepts associated with a real estate agent's fiduciary
duties, with "O" representing "obligation" to act in the best interest of clients, and each subsequent letter representing a
specific aspect of that duty. This sequence is derived from the acronym OLDCAR, which stands for Obligation, Loyalty,
Disclosure, Confidentiality, Accounting, and Reasonable Care, encapsulating the essential responsibilities of a real estate
agent to their clients.
QUESTION 4
In dual agency, the agent's duties are _____ to being a facilitator
CORRECT ANSWER
reduced
RATIONALE: In dual agency, the agent's duties are reduced to being a facilitator because the agent has a conflict of
interest, representing both the buyer and seller, which leads to a limitation on their ability to provide unbiased advice. As a
result, the agent's role shifts from a more active, advisory position to a more neutral, facilitative one, where their primary
function is to facilitate the transaction rather than advise on its details.
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, QUESTION 5
What statement would require full disclosure of all financing terms in compliance with TILA, Reg Z and
RESPA
CORRECT ANSWER
any number amount triggers full disclosure:
4.5% APR or $2000 down
RATIONALE: The statement "any number amount triggers full disclosure" is incorrect, and instead, the correct answer
focuses on specific terms that require full disclosure, specifically the APR (Annual Percentage Rate) and loan amount, which
are key components in determining whether a transaction qualifies as a "consumer credit transaction" under TILA (Truth in
Lending Act) and Reg Z, thus necessitating full disclosure. The inclusion of the APR and loan amount (represented by
"$2000 down") indicates that the transaction exceeds the threshold for TILA coverage and triggers the requirement for full
disclosure under RESPA (Real Estate Settlement Procedures Act) as well.
QUESTION 6
A _____foreclosure is material fact and it must be______.
CORRECT ANSWER
filed foreclosure; must be disclosed
RATIONALE: A foreclosure is considered a material fact because it significantly affects the value or desirability of a property,
impacting a buyer's decision to purchase. As a result, a foreclosure must be disclosed, as withholding this information could
constitute fraud and result in serious legal consequences.
QUESTION 7
If it is not_______, you shouldn't be talking about it.
CORRECT ANSWER
material fact
RATIONALE: A material fact is a crucial piece of information that can significantly impact a decision or outcome, making it
essential to consider when discussing a topic. If it's not a material fact, it's likely irrelevant or minor, and therefore not
worth bringing up in a conversation, which is why "material fact" is the correct answer to the question.
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QUESTIONS
60+ (Updated for 2026) Exam Prep Pack | A+ Questions & Verified Answers
100% Guarantee Pass
📋 DOCUMENT OVERVIEW 62 Qs
This document, "Post licensing 301 NC study questions ," covers specific topics including real estate
agency status disclosure, dual agency, loyalty, and full disclosure of financing terms, as well as foreclosure
disclosure and contract termination. Each question comes with correct answers and detailed explanations,
allowing students to study, review, and understand these concepts for exam preparation . By utilizing
this document, students can gain a comprehensive review of key real estate concepts and develop a deeper
understanding of their application in practice.
✓ Verified Answers ✓ Exam Ready ✓ Study Guide
Trusted by thousands of students and professionals worldwide
EXAM QUESTIONS
QUESTION 1
When must a seller's agent or subagent initially disclose agency status to a buyer?
CORRECT ANSWER
before buyer and buyer's agent discuss motivation and financial information
RATIONALE: This answer is correct because the Real Estate Settlement Procedures Act (RESPA) and Fair Housing Act
require a seller's agent or subagent to disclose their agency status as soon as possible, but before sensitive information
such as motivation and financial details are shared, to maintain transparency and avoid potential conflicts of interest. By
disclosing their agency status beforehand, buyers can make informed decisions about their representation and potential
biases that may impact the transaction.
Trusted by thousands of students and professionals worldwide Page 1 of 18
, QUESTION 2
seller's subagent
CORRECT ANSWER
no written or oral buyer agency
RATIONALE: A seller's subagent is an agent who represents the seller and owes fiduciary duties to the seller, but unlike a
seller's agent, they do not have a direct agreement with the seller, rather, they are appointed by the seller's agent. In this
scenario, the seller's subagent does not have a disclosed principal relationship with the buyer, hence "no written or oral
buyer agency" is accurate because the subagent's loyalties remain solely with the seller.
QUESTION 3
OLDCAR
CORRECT ANSWER
obedience
loyalty
disclosure
confidentiality
accounting
reasonable care
RATIONALE: The correct sequence, OLDCAR, represents the key concepts associated with a real estate agent's fiduciary
duties, with "O" representing "obligation" to act in the best interest of clients, and each subsequent letter representing a
specific aspect of that duty. This sequence is derived from the acronym OLDCAR, which stands for Obligation, Loyalty,
Disclosure, Confidentiality, Accounting, and Reasonable Care, encapsulating the essential responsibilities of a real estate
agent to their clients.
QUESTION 4
In dual agency, the agent's duties are _____ to being a facilitator
CORRECT ANSWER
reduced
RATIONALE: In dual agency, the agent's duties are reduced to being a facilitator because the agent has a conflict of
interest, representing both the buyer and seller, which leads to a limitation on their ability to provide unbiased advice. As a
result, the agent's role shifts from a more active, advisory position to a more neutral, facilitative one, where their primary
function is to facilitate the transaction rather than advise on its details.
Trusted by thousands of students and professionals worldwide Page 2 of 18
, QUESTION 5
What statement would require full disclosure of all financing terms in compliance with TILA, Reg Z and
RESPA
CORRECT ANSWER
any number amount triggers full disclosure:
4.5% APR or $2000 down
RATIONALE: The statement "any number amount triggers full disclosure" is incorrect, and instead, the correct answer
focuses on specific terms that require full disclosure, specifically the APR (Annual Percentage Rate) and loan amount, which
are key components in determining whether a transaction qualifies as a "consumer credit transaction" under TILA (Truth in
Lending Act) and Reg Z, thus necessitating full disclosure. The inclusion of the APR and loan amount (represented by
"$2000 down") indicates that the transaction exceeds the threshold for TILA coverage and triggers the requirement for full
disclosure under RESPA (Real Estate Settlement Procedures Act) as well.
QUESTION 6
A _____foreclosure is material fact and it must be______.
CORRECT ANSWER
filed foreclosure; must be disclosed
RATIONALE: A foreclosure is considered a material fact because it significantly affects the value or desirability of a property,
impacting a buyer's decision to purchase. As a result, a foreclosure must be disclosed, as withholding this information could
constitute fraud and result in serious legal consequences.
QUESTION 7
If it is not_______, you shouldn't be talking about it.
CORRECT ANSWER
material fact
RATIONALE: A material fact is a crucial piece of information that can significantly impact a decision or outcome, making it
essential to consider when discussing a topic. If it's not a material fact, it's likely irrelevant or minor, and therefore not
worth bringing up in a conversation, which is why "material fact" is the correct answer to the question.
Trusted by thousands of students and professionals worldwide Page 3 of 18
