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NC REC POST LICENSE 301 QUESTIONS & ANSWERS
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NC REC POST LICENSE 301 QUESTIONS & ANSWERS
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NC REC POST LICENSE 301 QUESTIONS & ANSWERS3 - Answers- Need to hold on to your WWREA for atleast _ years (both for clients that
you do work with and clients that you don't)
basics of agency and obligations - Answers- need to hand the client WWREA; need to
discuss and disclose all of the nuances of this brochure (working with real estate
agents) The clients you work with and don't need to sign this form
brokerage relationships - Answers- buyer-client: works with buyer's agent
seller's agent: working with the seller
seller's agent: can be also known as listing agent
a relationship is established with the buyer and one is established with the seller, even if
both are unknown
both are equally important
Fraud - Answers- if a party's agent engages in __, then any resulting contract may be
voidable. __ consists of:
- false representation or nondisclosure of a material fact
- made with knowledge of its falsity or in reckless disregard of its truth
- with the intent that it be acted upon by the other party and that is acted upon by that
party to his or her injury
(all 4 must be met)
__ does not automatically make a contract void, if the defrauded party has the option to
avoid the contract or enforce it
caveat emptor - Answers- let the buyer beware
can have as many inspections as they wish
NC is a __ __ state
consumers have no duty to disclose anything, even when they have actual knowledge
sellers must provide RPOADS in most sales transactions: doesn't compel disclosure -
no rep option
sellers must answer honestly if they choose yes or no as an answer: if they choose no
and the answer is incorrect, thats a faliscation of info, gulity of falisying info about the
property that they knew did or didn't work
__ __ in no way reduces a broker's duty to discover and disclose all material facts
places the primary burden on the buyer to discover the property's true condition
unfair or deceptive practices - Answers- an act by a seller or seller's agent that does not
amount to fraud may still be found to be __ __ __ __. This includes providing a
misleading opinion or false inducement, failing to disclose a material fact, misleading
ads, or misrepresenting the nature or extend of a guarantee or warranty that occurs in a
trade. The person injured is entitled to treble damages
does not apply to all sales. exempt includes people selling their own property (who isn't
apart of real estate), agents who sell their own property are covered by the act
,while a party need not prove fraud, proof of fraud automatically will constitute proof of
__ __ __ __
treble damages - Answers- 3 times the amount of damages
duress - Answers- overcoming the will of a person and forcing the person into a
contract by violence or threat of violence, imprisonment or thread of imprisonment,
threat of physical injury to a family member or others, threat of wrongful destruction,
injury, seizure, or withholding of one's property or any other wrongful act that compels a
person against their will to enter into a contract
exactly the same - Answers- the duties owned by a broker to the owner-principal are __
__ __ as the duties a seller's agent or buyer's agent to their principal under the law of
agency and NC RE Law
WWREA - Answers- While the _ _ _ _ disclosure brochure is not required in lease
transactions, brokers nonetheless are required to properly establish and/or disclosure
their agency relationships in property management/lease transactions. Must also clarify
their agency relationship when/if an owner or tenant with whom they are working
appears to misunderstand the broker's role
agency agreement - Answers- The Commission's agency rule, requires that an __ __
btwn a broker and a property owner be in writing from the inception of the relationship.
The broker must obtain a written property management agreement singed by the broker
and the property owners before rending any services on the property owner's behalf.
property management agreement - Answers- __ __ __ should clearly define the role
and authority of the property manager as the agent of the owner, specify the term of the
agreement, state the amount or method for calculating the property manager's fee,
describe the procedures for handling tenant security deposits and delineate the
responsibilities of both the property manager and the owner
management fee - Answers- the method for determining the property __ __ can vary as
indicated by the blank space for insertion of the fee agreement. Although in come cases
a fixed amount may be set as the monthly fee, the most common fee arrangement for
residential properties is to express the broker's fee as a % of actual gross rents
received. Normal to also provide a minimum monthly fee that will apply if the fee
calculated on a % of rents basis is lower than the prescribed min fee.
preparing a management plan - Answers- 1st step: develop a comprehensive
management plan
this involves a thorough property analysis & market analysis. both the property owner
and the broker should have a clear understanding as to the profit each can reasonably
expect to earn from operation of the rental.
,NCREC - Answers- the rules come from __ __ __ __ __, 58A rules. 58 of each: Rule
A.0104, Rule A.0106, Rule A.0115, Rule A.0116, Rule A.0117 - create the rules around
the forms
A .0104 Agency Agreements and Disclosure - Answers- Every agreement for brokerage
services in a real estate transaction and every agreement for services connected with
the management of a property owners association shall be in writing and signed by the
parties thereto. However, every agreement between a broker and a buyer or tenant that
seeks to bind the buyer or tenant for a period of time or to restrict the buyer's or tenant's
right to work with other agents or without an agent shall be in writing and signed by the
parties thereto from its formation. Every listing agreement, written buyer agency
agreement, or other written agreement for brokerage services in a real estate
transaction shall contain the following provision: "The broker shall conduct all brokerage
activities in regard to this agreement without respect to the race, color, religion, sex,
national origin, handicap, or familial status of any party or prospective party." In every
real estate sales transaction, a broker shall, at first substantial contact with a
prospective buyer or seller, provide the prospective buyer or seller with a copy of the
publication "Working with Real Estate Agents," set forth the broker's name and license
number thereon, review the publication with the buyer or seller, and determine whether
the agent will act as the agent of the buyer or seller in the transaction. (within 3 days of
first contact)
A .0104 Agency Agreements and Disclosure during auction - Answers- The provisions
of Paragraphs (c), (d) and (e) of this Rule do not apply to real estate brokers
representing sellers in auction sales transactions. (h) A broker representing a buyer in
an auction sale transaction shall, no later than the time of execution of a written
agreement memorializing the buyer's contract to purchase, provide the seller or seller's
agent with a written confirmation disclosing that he or she represents the interests of the
buyer. The written confirmation may be made in the written agreement.
A .0104 Agency Agreements and Disclosure during dual agent - Answers- A firm that
represents more than one party in the same real estate transaction is a dual agent and,
through the brokers associated with the firm, shall disclose its dual agency to the
parties. (j) When a firm represents both the buyer and seller in the same real estate
transaction, the firm may, with the prior express approval of its buyer and seller clients,
designate one or more individual brokers associated with the firm to represent only the
interests of the seller and one or more other individual brokers associated with the firm
to represent only the interests of the buyer in the transaction. The authority for
designated agency shall be reduced to writing not later than the time that the parties are
required to reduce their dual agency agreement to writing in accordance with Paragraph
(d) of this Rule. A broker-in-charge shall not act as a designated broker for a party in a
real estate sales transaction when a provisional broker under his or her supervision will
act as a designated broker for another party with a competing interest.
21 NCAC 58A .0105 Authority to Advertise - Answers- (1) A broker shall not advertise
any brokerage service or the sale, purchase, exchange, rent, or lease of real estate for
, another or others without the consent of his or her broker in charge and without
including in the advertisement the name of the firm or sole proprietorship with which the
broker is affiliated. (2) A broker shall not display a "for sale" or "for rent" sign on any real
estate or otherwise advertise any real estate without the written consent of the owner or
the owner's authorized agent.
Blind Ads - Answers- A broker shall not advertise the sale, purchase, exchange, rent, or
lease of real estate for others in a manner indicating the offer to sell, purchase,
exchange, rent, or lease is being made by the broker's principal only. Every such
advertisement shall indicate that it is the advertisement of a broker or firm and shall not
be confined to publication of only contact information, such as a post office box number,
telephone number, street address, internet web address, or email address
limited nonresident commercial broker - Answers- A person licensed as a __ __ __ __
shall comply with the provisions of Rule .1809 of this Subchapter in connection with all
advertising concerning or relating to his or her status as a North Carolina broker.
undue influence - Answers- may also invalidate a contract. this occurs when one
person takes unfair advantage of another in a contractual relationship bc of the parties'
particular and peculiar relationship, or one party's weakness of mind, or due to a party's
particular necessitites or distress
unfair and deceptive or trade practice - Answers- if a violation of the residential rental
agreement act by a landlord is also an __ __ __ __ __ __, then the tenant who has
suffered damages bc of the landlord's violation can recover treble damages
landlord's liability under the law of negligence - Answers- two fact situations:
- common areas under the land lord's control and
- rental unit occupied exclusively by tenants
property manager - Answers- an employee of a broker is an agent of the __ __ and a
subagent of the owner, just as a real estate firm is the primary agent of its principals and
all of the firm's affiliated agents are subagents of the company's principals
21 NCAC 58A .0106 DELIVERY OF INSTRUMENT - Answers- Except as provided in
Paragraph (b) of this Rule, every broker shall deliver a copy of any written agency
agreement, contract, offer, lease, rental agreement, option, or other related transaction
document to their customer or client within three days of the broker's receipt of the
executed document.
(b) A broker may be relieved of the duty to deliver copies of leases or rental agreement
pursuant to Paragraph (a) of this Rule if the broker: (1) obtains the prior written authority
of the property owner to enter into and retain copies of leases or rental agreements on
behalf of the property owner; (2) executes the lease or rental agreement on a preprinted
form, the material terms of which may not be changed by the broker without prior
approval by the property owner, except as may be required by law; and (3) delivers to
the property owner an accounting within 45 days following the date of execution of the
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