303 NC POST LICENSING EXAM NEWEST 2024 ACTUAL EXAM
300 QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A
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 -
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. - 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 - 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. - 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 -
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 -
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 -
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. -
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. - 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 - answer-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 - answer-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. - answer-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.
