301 NC Post-licensing
An agent's duties to third parties include all the following EXCEPT
A) fairness.
B) obedience.
C) disclosure of material fact.
D) honesty. - CORRECT ANSWER-B) obedience.
Derrin hires Austin with Best Homes Realty to list his home for sale. As Austin is
completing the listing agreement, Derrin mentions that the hot water heater has
not worked for a couple of weeks and is not planning on repairing it since he is
selling the home. Derrin tells Austin that he cannot share that information with
anyone as it might affect the sale of the home. What is the BEST course of action
for Austin at this time?
A) If Austin shares the information regarding the hot water heater, he will be in
violation of his fiduciary duties, and Derrin can sue him for disclosing confidential
information.
B) Austin can share the information with people at Best Homes Realty but cannot
share it with any firm representing a buyer.
C) Austin must disclose that the hot water heater is not working because it is a
material fact.
D) Austin must obey the seller. Austin and Best Homes Realty owe fiduciary
duties to their clien - CORRECT ANSWER-C) Austin must disclose that the hot
water heater is not working because it is a material fact.
Armin, a broker affiliated with Best Homes Realty, listed a property for sale and
conducted an open house. Courtney visited the open house and decided to make
an offer. The seller had completed the Residential Property and Owners'
Association Disclosure Statement (RPOADS) indicating all defects the seller
knows that exist about the property. In this situation, which of the following
statements is TRUE?
A) Courtney needs to be advised to still conduct a full home inspection.
B) Since the seller disclosed all known material facts, they have complied with
the Doctrine of Caveat Emptor and Courtney does not need to complete a full
home inspection.
,C) Since the seller disclosed all known material facts that they were aware of,
Courtney does not need to complete a full home inspection.
D) Armin can assure Courtney that the seller has disclosed all material facts and
she does not need to get her own home inspection. - CORRECT ANSWER-A)
Courtney needs to be advised to still conduct a full home inspection.
A buyer and a seller are negotiating the terms of a possible contract. The seller
counteroffers to the buyer, and the buyer wants to think about it overnight. The
next day the buyer calls the selling agent and says they would like to accept the
seller's counteroffer. Before verifying that the buyer had actually signed the
counteroffer, the selling agent calls the listing agent to say the buyer had
accepted the seller's counteroffer. The seller then goes on to purchase another
house based on the buyer's "acceptance" of their counteroffer. When the selling
agent goes to pick up the signed paperwork from the buyer, the buyer states they
never signed the counteroffer and do not want to buy the seller's home. Which of
the following statements is correct?
A) The selling agent is not responsible for the misrepresentation.
B) Both the buyer and the selling agent are responsible for the
misrepresentation.
C) Neither the buyer - CORRECT ANSWER-D) The selling agent is responsible
for the misrepresentation.
The real estate broker's fiduciary responsibility to keep the principal informed of
all facts, including property condition and issues that affect a seller's willingness
to sell and a buyer's willingness to buy, is the duty of
A) reasonable skill, care, and diligence.
B) disclosure.
C) obedience.
D) accounting. - CORRECT ANSWER-B) disclosure.
The duties owed from the "agent" to the "principal" are BEST described by which
of the following?
A) Obedience, loyalty, accounting, and reasonable care
B) Fairness and honesty
C) Fairness, honest, obedience, loyalty, accounting, reasonable skill, and care
,D) Obedience, loyalty, disclosure, confidentiality, accounting, reasonable skill,
care, and diligence - CORRECT ANSWER-D) Obedience, loyalty, disclosure,
confidentiality, accounting, reasonable skill, care, and diligence
Which of the following BEST describes subagent?
A) Literally the agent of an agent, a person designated or employed by an agent
to perform all or part of the agent's assigned tasks or services on behalf of the
agent's principal
B) The person who authorizes another to act on the principal's behalf within
specified parameters and to whom the agent owes certain legal duties
C) The person acting for and on behalf of the principal within the bounds of the
authority granted and who owes fiduciary duties to the principal
D) The relationship that exists when one person is authorized to act for and on
behalf of another - CORRECT ANSWER-A) Literally the agent of an agent, a
person designated or employed by an agent to perform all or part of the agent's
assigned tasks or services on behalf of the agent's principal
Which of the following statements is TRUE regarding agency agreements?
A) Listing agreements, property management agreements, buyer agency
agreements, and tenant representation agreements can all be express oral
agreements for a period of time.
B) Listing agreements and property management agreements must be express
written agreements from the beginning of the relationship and buyer agency
agreements and tenant representation agreements can be in express oral
agreements for a period of time.
C) Listing agreements and buyer agency agreements must be express written
agreements from the beginning of the relationship and property management
agreements and tenant representation agreements can be express oral
agreements for a period of time.
D) Listing agreements and property management agreements can express oral
agreements for a period of time and buyer agency agreements and tenant
representation agreements must be in ex - CORRECT ANSWER-B) Listing
agreements and property management agreements must be express written
agreements from the beginning of the relationship and buyer agency agreements
and tenant representation agreements can be in express oral agreements for a
period of time.
, Which of the following statements BEST describes North Carolina Unfair
Deceptive Practices Act?
A) This law prohibits disclosure regarding facts about the property itself or the
surrounding area.
B) This law prohibits unfair or deceptive acts or practices in commerce and
applies to the sale or rental of real estate and to real estate brokers.
C) This law holds that—except in cases involving fraud by the seller or the
seller's agent—the seller has no affirmative obligation to disclose information
about the property being sold to the purchaser and places the burden on the
buyer to investigate the property before contracting to purchase the property.
D) This law prohibits making generalized expression of a broker's opinion about a
property. - CORRECT ANSWER-B) This law prohibits unfair or deceptive acts or
practices in commerce and applies to the sale or rental of real estate and to real
estate brokers.
George knows that the property is about to be rezoned for commercial use,
which will greatly increase the value of the property. George does not share this
information with the seller and offers to buy the property for himself as an
investment. George closes on the property with the seller and then after the
rezoning has been finalized, George sells the property at a substantial profit. This
is an example of
A) self-dealing.
B) making false promises.
C) undisclosed dual agency.
D) improper dealing. - CORRECT ANSWER-A) self-dealing.
Lanzo is in the process of listing a house for sale and tells the seller that he will
stage the house, steam clean the carpets, and hire a professional cleaning crew
to clean prior to showing the house. Once the seller signed the listing agreement,
Lanzo failed to provide these services. Lanzo may be guilty of which of the
following?
A) Making false promises
B) Undisclosed dual agency
C) Self-dealing
D) Improper brokerage commission - CORRECT ANSWER-A) Making false
promises
An agent's duties to third parties include all the following EXCEPT
A) fairness.
B) obedience.
C) disclosure of material fact.
D) honesty. - CORRECT ANSWER-B) obedience.
Derrin hires Austin with Best Homes Realty to list his home for sale. As Austin is
completing the listing agreement, Derrin mentions that the hot water heater has
not worked for a couple of weeks and is not planning on repairing it since he is
selling the home. Derrin tells Austin that he cannot share that information with
anyone as it might affect the sale of the home. What is the BEST course of action
for Austin at this time?
A) If Austin shares the information regarding the hot water heater, he will be in
violation of his fiduciary duties, and Derrin can sue him for disclosing confidential
information.
B) Austin can share the information with people at Best Homes Realty but cannot
share it with any firm representing a buyer.
C) Austin must disclose that the hot water heater is not working because it is a
material fact.
D) Austin must obey the seller. Austin and Best Homes Realty owe fiduciary
duties to their clien - CORRECT ANSWER-C) Austin must disclose that the hot
water heater is not working because it is a material fact.
Armin, a broker affiliated with Best Homes Realty, listed a property for sale and
conducted an open house. Courtney visited the open house and decided to make
an offer. The seller had completed the Residential Property and Owners'
Association Disclosure Statement (RPOADS) indicating all defects the seller
knows that exist about the property. In this situation, which of the following
statements is TRUE?
A) Courtney needs to be advised to still conduct a full home inspection.
B) Since the seller disclosed all known material facts, they have complied with
the Doctrine of Caveat Emptor and Courtney does not need to complete a full
home inspection.
,C) Since the seller disclosed all known material facts that they were aware of,
Courtney does not need to complete a full home inspection.
D) Armin can assure Courtney that the seller has disclosed all material facts and
she does not need to get her own home inspection. - CORRECT ANSWER-A)
Courtney needs to be advised to still conduct a full home inspection.
A buyer and a seller are negotiating the terms of a possible contract. The seller
counteroffers to the buyer, and the buyer wants to think about it overnight. The
next day the buyer calls the selling agent and says they would like to accept the
seller's counteroffer. Before verifying that the buyer had actually signed the
counteroffer, the selling agent calls the listing agent to say the buyer had
accepted the seller's counteroffer. The seller then goes on to purchase another
house based on the buyer's "acceptance" of their counteroffer. When the selling
agent goes to pick up the signed paperwork from the buyer, the buyer states they
never signed the counteroffer and do not want to buy the seller's home. Which of
the following statements is correct?
A) The selling agent is not responsible for the misrepresentation.
B) Both the buyer and the selling agent are responsible for the
misrepresentation.
C) Neither the buyer - CORRECT ANSWER-D) The selling agent is responsible
for the misrepresentation.
The real estate broker's fiduciary responsibility to keep the principal informed of
all facts, including property condition and issues that affect a seller's willingness
to sell and a buyer's willingness to buy, is the duty of
A) reasonable skill, care, and diligence.
B) disclosure.
C) obedience.
D) accounting. - CORRECT ANSWER-B) disclosure.
The duties owed from the "agent" to the "principal" are BEST described by which
of the following?
A) Obedience, loyalty, accounting, and reasonable care
B) Fairness and honesty
C) Fairness, honest, obedience, loyalty, accounting, reasonable skill, and care
,D) Obedience, loyalty, disclosure, confidentiality, accounting, reasonable skill,
care, and diligence - CORRECT ANSWER-D) Obedience, loyalty, disclosure,
confidentiality, accounting, reasonable skill, care, and diligence
Which of the following BEST describes subagent?
A) Literally the agent of an agent, a person designated or employed by an agent
to perform all or part of the agent's assigned tasks or services on behalf of the
agent's principal
B) The person who authorizes another to act on the principal's behalf within
specified parameters and to whom the agent owes certain legal duties
C) The person acting for and on behalf of the principal within the bounds of the
authority granted and who owes fiduciary duties to the principal
D) The relationship that exists when one person is authorized to act for and on
behalf of another - CORRECT ANSWER-A) Literally the agent of an agent, a
person designated or employed by an agent to perform all or part of the agent's
assigned tasks or services on behalf of the agent's principal
Which of the following statements is TRUE regarding agency agreements?
A) Listing agreements, property management agreements, buyer agency
agreements, and tenant representation agreements can all be express oral
agreements for a period of time.
B) Listing agreements and property management agreements must be express
written agreements from the beginning of the relationship and buyer agency
agreements and tenant representation agreements can be in express oral
agreements for a period of time.
C) Listing agreements and buyer agency agreements must be express written
agreements from the beginning of the relationship and property management
agreements and tenant representation agreements can be express oral
agreements for a period of time.
D) Listing agreements and property management agreements can express oral
agreements for a period of time and buyer agency agreements and tenant
representation agreements must be in ex - CORRECT ANSWER-B) Listing
agreements and property management agreements must be express written
agreements from the beginning of the relationship and buyer agency agreements
and tenant representation agreements can be in express oral agreements for a
period of time.
, Which of the following statements BEST describes North Carolina Unfair
Deceptive Practices Act?
A) This law prohibits disclosure regarding facts about the property itself or the
surrounding area.
B) This law prohibits unfair or deceptive acts or practices in commerce and
applies to the sale or rental of real estate and to real estate brokers.
C) This law holds that—except in cases involving fraud by the seller or the
seller's agent—the seller has no affirmative obligation to disclose information
about the property being sold to the purchaser and places the burden on the
buyer to investigate the property before contracting to purchase the property.
D) This law prohibits making generalized expression of a broker's opinion about a
property. - CORRECT ANSWER-B) This law prohibits unfair or deceptive acts or
practices in commerce and applies to the sale or rental of real estate and to real
estate brokers.
George knows that the property is about to be rezoned for commercial use,
which will greatly increase the value of the property. George does not share this
information with the seller and offers to buy the property for himself as an
investment. George closes on the property with the seller and then after the
rezoning has been finalized, George sells the property at a substantial profit. This
is an example of
A) self-dealing.
B) making false promises.
C) undisclosed dual agency.
D) improper dealing. - CORRECT ANSWER-A) self-dealing.
Lanzo is in the process of listing a house for sale and tells the seller that he will
stage the house, steam clean the carpets, and hire a professional cleaning crew
to clean prior to showing the house. Once the seller signed the listing agreement,
Lanzo failed to provide these services. Lanzo may be guilty of which of the
following?
A) Making false promises
B) Undisclosed dual agency
C) Self-dealing
D) Improper brokerage commission - CORRECT ANSWER-A) Making false
promises
