NCREL POST LICENSING 301 BROKER RELATIONSHIPS
AND RESPONSIBILITIES EXAM QUESTIONS AND VERIFIED
ANSWERS
When should a seller's agent or sub-agent disclose her agent status to a
prospective buyer? - ANSWER Before the buyer and agent discuss motive or
financials.
What are the fiduciary duties assigned to principals? - Answer: Obey, Loyalty,
Disclosure, Confidentiality, Accounting, and Reasonable Care (Old CAR).
As a dual agent, my fiduciary responsibilities are delegated to the buyer and
seller under which agency? - ANSWER Dual Agency – the agent cannot advise
or counsel.
Material facts that must be disclosed: ANSWER Pending foreclosure, bad
conditions, neighbourhood changes, anything that will influence a decision to
buy or sell.
A runway is planned for the next 20 years near the land I intend to buy. I
eventually sell the property. To whom must I share the runway plan? -
ANSWER All Parties
A listing broker is aware of a concealed flaw in the property. The seller does not
mark any representations on the disclosure statement, therefore the listing agent
does not disclose the fault in marketing or on the MLS. The buyer's
representative does not discover the flaw. Who is accountable for the lack of
disclosure to the purchaser after the transaction has closed? - ANSWER The
listing broker alone - this is a deliberate omission. If the buyer's representative
detected the fault, they would also be held accountable.
A client tells a buying agent how delighted he is to buy a home and live off the
grid, with plans to install solar panels. The buyer's agent finds a home with a
south-facing roof and informs the listing agent of her buyer's want to install
solar panels on the property. After that, the solar panels are mounted. The city
, advises the buyer that this violates city ordinance and must be removed. Who is
responsible? - ANSWER Both the buying and selling agents should have
contacted the city's zoning board to see if solar panels were permitted.
How does dual agency influence fiduciary duties? - ANSWER The firm's duties
are divided evenly between the buyer and seller.
The agent's involvement will be limited to the contractual benefits of the
arrangement.
If you are a provisional broker, your BIC will list and sell property. What
agency is permitted if you introduce a buyer to the BICs listing and an offer is
made? - ANSWER Both the BIC and the provisional broker are dual agents.
The company also operates under dual agency.
In a dual agency company, when must a broker representing the selling discuss
and disclose to the seller the name of the buyer's agent? - ANSWER No later
than the introduction of a buying offer.
If a company uses designated agency in any of its transactions, when must a
broker representing the seller discuss and reveal the buyer's agent's name to the
seller? - ANSWER No later than the introduction of an offer to buy
A broker enters into a signed arrangement with Auto Associates to help the
company relocate and purchase a huge showroom. The agreement specifies that
the broker must get compensation if... - ANSWER The broker does not disclose
to the property owner the pre-existing agreement with the buyer, and vice versa.
If you have a commercial relationship with someone, how long can you contact
them? - Answer 18 months after the previous business conversation.
When must a seller's agent or sub agent reveal their agency position to a
prospective buyer? - ANSWER Before the buyer and agent examine the buyer's
motivation and financial information
In a limited service listing agreement, the listing brokers are typically not
required to undertake what? - ANSWER Show the property to potential
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