Exam (elaborations)
NC POST LICENSING 301 POST-LICENSING QUESTIONS AND ANSWERS
- Course
- Institution
NC POST LICENSING 301 POST-LICENSING QUESTIONS AND ANSWERS
[Show more]
Content preview
NC POST LICENSING 301 POST-LICENSINGQUESTIONS AND ANSWERS
An agent's duties to third parties include all the following EXCEPT
A) fairness.
B) obedience.
C) disclosure of material fact.
D) honesty. - Answers- 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 - Answers- 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. - Answers- 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 - Answers- D) The selling agent is responsible for the
misrepresentation.
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 - Answers- 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 - Answers- 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. - Answers- 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. - Answers- A) self-dealing.
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. - Answers- 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 - Answers- D) Obedience, loyalty, disclosure, confidentiality, accounting,
reasonable skill, care, and diligence
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 - Answers- A) Making false promises
Who is required to disclose material facts?
A) Sellers and listing agents
, B) Sellers and buyers
C) Listing agents and selling agents
D) Sellers, buyers, listing agents, and selling agents - Answers- C) Listing agents and
selling agents
Francis listed a property for sale and did not investigate the property for material facts
because he relied on the seller's statement that there was nothing wrong with the
property. It was later discovered that there was a substantial leak in the roof that was
easily detectable. In this situation, Francis could be held liable for which of the
following?
A) The seller will be held responsible and Francis has no liability
B) Negligent misrepresentation or omission.
C) Willful misrepresentation or omission.
D) Francis is not required to discover material facts since he has the seller's word that
there is nothing wrong. - Answers- B) Negligent misrepresentation or omission.
Which of the following statements regarding agent's duties under real estate license law
is TRUE?
A) A broker's duties under license law when dealing with parties to a transaction apply
regardless of the broker's agency relationship to such parties.
B) A broker's duties under license law when dealing with parties to a transaction apply
only to the firm's clients.
C) A broker's duties under license law when dealing with parties to a transaction apply
only to the firm's customers.
D) A broker does not have duties under license law as brokers are only bound by North
Carolina Real Estate Commission rules. - Answers- A) A broker's duties under license
law when dealing with parties to a transaction apply regardless of the broker's agency
relationship to such parties.
When it comes to standards for selling agents, which of the following statements is
TRUE?
A) A selling agent may rely on the accuracy of property information provided by a listing
agent in MLS only and must verify other forms of advertising.
B) Generally, a selling agent may rely on the accuracy of property information provided
by a listing agent.
C) A selling agent may never rely on the accuracy of property information provided by a
listing agent as they must always verify everything.
D) Neither the listing nor selling agent are liable for advertising as long as there is a
"disclaimer" warning for the reader to make an independent investigation. - Answers- B)
Generally, a selling agent may rely on the accuracy of property information provided by
a listing agent.
Alfonso tells a prospective buyer that, in his opinion, the property they are about to view
is the most beautiful property in the neighborhood. Even if the property would be
considered to many as being very unattractive, the nature of Alfonso's statement would
be considered as
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller GEEKA. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
82215 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now