Exam (elaborations)
NC 302 Post Licensing.
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NC 302 Post Licensing.
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NC 302 Post LicensingClassifying contracts:
Express & Implied - CORRECT ANSWER-Express: Bilateral, executed
Intentions stated (orally or written)
Implied: Unilateral, executory
Inferred from conduct or actions
Classifying contracts:
Bilateral & Unilateral - CORRECT ANSWER-Bilateral - two promises (both
parties bound to do something)
Unilateral - Only one party is bound
Classifying Contracts:
Executed & Executory - CORRECT ANSWER-Executed - All tasks performed
(After closing)
Executory - tasks remaining to be done (before closing)
Statute of Frauds - CORRECT ANSWER-Everything needs to be in writing
DREAM OILS (Statute of Frauds) - CORRECT ANSWER-Deeds
Restrictive covenants
Easements
Assignments
Mortgages
Options
Installment Land Contracts
Leases - longer than 3 years
Sales Contracts
Offer & Acceptance - CORRECT ANSWER-Seller (OfferEE) & Buyer (OfferOR) --
ORs GIVE, EEs RECEIVE
OfferOR may revoke or withdraw the offer anytime prior to acceptance
,OfferEE can accept, reject or counter -- and when they counter, they are now the
offerEE
This counter offer VOIDS original offer
All offers must be communicated
Deliver all offers immediately but never later than 3 days
Retention of Records 58A.108 - CORRECT ANSWER-A broker must provide
copies of transaction documents:
- To the Firm or Sole Proprietorship (BIC) with which they are affiliated
- Within 3 days
- Keep records for 3 years after
Closing
Termination of Agency
Disbursement of Trust Monies
WHICHEVER OCCURS LAST
Brokers and BIC are responsible for keeping records in a transaction
These are CALENDAR days, not business days
You don't count the day it was executed/received (if received Tuesday, have to
upload by Friday)
Buyer's Rights w/ an offer - CORRECT ANSWER-A buyer has the absolute right
of withdraw/revoke
Even if offer stated it would be held open longer
The withdraw must be communicated to the other party and/or their agent
An offer is terminated any time: - CORRECT ANSWER-Counter offer
Rejection by the offeree
Revocation by the offeror
Destruction of the property (Think hurricane)
Death or insanity of the offeror
Agent Guidelines w/ offers - CORRECT ANSWER-A listing broker or agent is
required to respond in writing that an offer was submitted if the cooperating
broker who submitted the offer so requests
The listing broker or agent must respond in the affirmative unless the seller has
provided written notification waiving the obligation to have the offer presented
Agent has to present all offers all the way throughout the contract, up to closing
,Creation of a counter offer - CORRECT ANSWER-Any change in an offer, no
matter how small creates a counter offer
Counter offer must be accepted and communicated to the other party to create a
contract
Proper use of From 340-T: NCAR Response to Buyer's Offer
A valid contract is formed when a contract is signed, delivered and
communicated - CORRECT ANSWER-"Communicating an offer or an
acceptance to a principal's agent is the same as communicating directly to the
principal"
Beware Dual Agency is Communication is IMMEDIATE - CORRECT
ANSWER-When a dual agent has been informed that the seller has accepted an
offer is already considered communicated to the buyer
Methods of communicating acceptance: - CORRECT ANSWER-Oral
Personal delivery
Mail or FedEx
Electronic communication
The mailbox rule - CORRECT ANSWER-: We measure delivery from when it is
SENT, not RECEIVED (Page 280)
Mutual Mistakes - CORRECT ANSWER-Mistake of "Material Fact" - read pg. 283
- 284
May allow buyer to rescind the contract and be refunded all monies
Does NOT apply to "Mistakes of Law"
Fraud & Misrepresentation - CORRECT ANSWER-Fraud makes contracts
voidable
Willful misrepresentations or omissions
Of material facts
Make the contract voidable by the person deceived
Unfair or deceptive trade practices act: - CORRECT ANSWER-A misleading
opinion or false inducement
, Fails to disclose material facts
Misleading advertising
Misrepresentation of the nature of a guarantee
This applies to real estate professionals and sellers who regularly trade in the
business
Does not apply to an owner who does not regularly act in the business
Discharge of Contracts: [TEST QUESTION] p g. 290-291 - CORRECT
ANSWER-Release
Novation (the substitution of a new contract in place of an old one)
Subsequent modification
Accord & Satisfaction
Cancellation
Contract Assignments - CORRECT ANSWER-Generally assignable
Unless contract prohibits
Assignors & Assignees
Assignee is primarily liable
Assignor remains secondarily liable
NC Requires Consent Prior to Assignment - CORRECT ANSWER-The NC offer
to purchase and contract requires the permission and consent of the parties in
order to assign rights under the agreement
Remedies for Breach page 295 - CORRECT ANSWER-Compensatory
Consequential
Liquidated
Specific Performance
Rescission
Drafting of Contracts - CORRECT ANSWER-No "drafting" of contracts
Don't engage in the unauthorized practice of law
"Fill-in" or "Complete" preprinted forms
T-from (Number) -- it's a transaction form.
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