POST-LICENSING- 301 BROKER
RELATIONSHIPS AND
RESPONSIBILITIES REVIEW
QUESTIONS WITH VERIFIED ANSWERS
Agency obligations come from 3 sources - Correct Answer - 1. Common law
2. State law
3. Commission law
When a licensee breaches agency obligations, all of the following are potential
consequences: - Correct Answer - 1. Civil liability
2. Criminal liability
3. Ethical violations
4. NCREC Disciplinary actions
The Commission may never _________________ a licensee as part of a disciplinary
action - Correct Answer - Fine
Fiduciary duties and obligations are important in the real estate industry because they
impact the ____________ that consumer have in working with real estate professionals.
- Correct Answer - Trust
Firms owe fiduciary duties to their __________________. - Correct Answer - Principals
aka Clients
Licensees owe duties to the _________ and also to _______________ through
__________________. - Correct Answer - Licensees owe duties to the FIRM and also
to CLIENTS through SUBAGENCY
OLDCAR- O - Correct Answer - Obedience
OLDCAR-L - Correct Answer - Loyalty
OLDCAR-D - Correct Answer - Disclosure
OLDCAR-C - Correct Answer - Confidentiality
OLDCAR-A - Correct Answer - Accounting
, OLDCAR-R - Correct Answer - Reasonable Skill, Care and Diligence
Real Estate licensees are required to follow the instructions and direction of the
____________ unless those instructions are_______________ - Correct Answer - Real
Estate licensees are required to follow the instructions and direction of the CLIENT
unless those instructions are ILLEGAL.
If the instruction is illegal then a real estate professional should take the following
action....... - Correct Answer - Terminate the relationship
Typical agency relationships in real estate DO NOT permit the agent to..... - Correct
Answer - 1. Make the decisions for he client
2. Sign client's name
3. Make offers or accept on behalf of client
Obligation of loyalty requires a Real Estate professional to put the ___________ interest
above all others, including _____________- - Correct Answer - Obligation of loyalty
requires a Real Estate professional to put the CLIENTS interest above all others
including YOUR OWN.
A licensee has many obligations of Disclosure, disclosures include..... - Correct Answer
- 1. Agency explanations
2. Material Facts
3. Interests in the transactions
4. Status as a licensee
A licensee must keep confidential all of the following of their client..... - Correct Answer -
1. Motivations
2. Finances
3. Objectives of Pricing or eventual amt willing to pay or accept.
4. Personal Information
A licensee has an obligation to ___________________ and _________________
handled in a real estate transaction- MONEY - Correct Answer - A licensee has an
obligation to SAFEGUARD ALL MONEY and DOCUMENT ALL MONEY handled in a
real estate transaction.
A real estate licensee is required to not be _________________ and possess
reasonable _________________ - Correct Answer - A real estate licensee is required to
not be NEGLIGENT and possess reasonable KNOWLEDGE AND SKILL.
Material facts must be disclosed to _____________ in the transaction. - Correct Answer
- All Parties
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