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Post 301 - Broker Relationships and Responsibilities Exam|120 Questions and Answers
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Post 301 - Broker Relationships and Responsibilities Exam|120 Questions and Answers
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Post 301 - Broker Relationships andResponsibilities Exam|120 Questions and
Answers
All of the following are true as to what License Law requires a BPO to contain
- -A copy of the assignment request from the person requesting the BPO.
A description of the subject property and the intended purpose/use of the
BPO.
The broker's name, signature, license number, and the effective date of the
BPO.
- NCREC rules regarding BPOs require all of the following: - -A broker must
provide at least three comparables.
A broker may perform a BPO for either residential or commercial properties
for sale or lease if they have the necessary market knowledge and
experience to be competent.
A broker is expected to personally inspect the interior and exterior of the
subject property unless waived in writing by the person requesting the BPO.
- Which of the following statements is FALSE regarding Paragraph 11,
"Earnest Money"? - -The listing company should hold any earnest money
paid in the transaction.
If the earnest money is forfeited to the seller under the Offer to Purchase and
Contract, then the listing company is entitled to receive 50% of the earnest
money or the amount of their listing fee, whichever is less.
XX If there is a dispute between the listing company and the seller over the
earnest money, the escrow agent may pay the earnest money to the Clerk of
Court under License Law.
The Clerk of Court procedure applies to earnest money disputes between the
buyer and seller.
- Which of the following is true when acting as a limited listing agent? - -The
Commission's agency rule doesn't apply because the broker is not offering
full service.
XX The broker must provide and explain the Working with Real Estate Agents
brochure prior to first substantial contact.
,The broker and seller may have an oral agreement regarding the few
services the broker will provide.
The broker may disclaim any liability for relying on information from the
seller.
- Under which type of listing agreement does the seller retain a right to
compete for the commission? - -Exclusive agency listing agreement.
- When representing a seller, the agency agreement with the seller must be
in writing: - -At the outset of the relationship before providing any brokerage
services.
- A valid listing agreement with a real estate company may be terminated
for any of the following reasons: - -Sale of the property.
Agreement of the parties.
Destruction of the property.
- The listing company is the escrow agent holding the earnest money
deposit. The buyer fails to close and all agree that the seller is entitled to the
earnest money under the Offer to Purchase and Contract. The company
notifies their seller that they intend to release 50% of the earnest money to
the seller and keep the other 50% for the company pursuant to the listing
agreement. The seller objects and insists on receiving the entire amount of
the earnest money. The listing company should - -XX Obey the lawful
directives of its principal and refund the entire earnest money to the seller.
Hold the earnest money in its trust account as disputed funds until the
company and principal-client agree how to divide.
Use the disputed funds procedure under License Law and pay the earnest
money to the Clerk of Court.
Deduct the company's 50% under the listing agreement and pay the other
50% to the seller-client.
- All of the following are true about NCAR Form 203, Non-Exclusive Buyer
Agency Agreement: - -It creates a non-exclusive agency relationship with
the company so the buyer may still work with multiple agents.
The buyer is not obligated to pay the selling company if the listing company
won't share, but the selling company may terminate the agency agreement
if their buyer-client refuses to compensate them.
, The agency agreement must have a definite termination date and the non-
discrimination language because it is in writing.
- A buyer who authorizes traditional dual agency in NCAR Form 201
acknowledges all of the following EXCEPT: - -They understand that the agent
may no longer advise or counsel either principal.
X The agent must disclose all information about each principal to the other.
The client must make their own decisions but may seek legal counsel.
The company's compensation will be greater and will be the amount
disclosed in the agreement.
- Which of the following statements about oral buyer agency is FALSE? - -
Company office policy may prohibit affiliates from entering into oral buyer
agency agreements or provide a time limit, e.g., not more than 5 days.
X An oral buyer agency agreement is not binding; thus, the broker has no
fiduciary duties to the buyer until a written agency agreement is signed.
Oral buyer agency agreements may not be exclusive, thereby allowing the
buyer to work with multiple brokers simultaneously
Oral buyer agency agreements are no definite time period and may be
terminated at any time by either party.
- To work with a buyer as a seller subagent, a broker who is not affiliated
with the listing company must have consent from all of the following: - -The
buyer-customer.
The listing company.
The seller-principal.
- What does using NCAR's Form 203, Non-Exclusive Buyer Agency
Agreement accomplish? - -It obligates the buyer-client to pay the buyer-
agent company if the listing company/seller refuses to share.
- Which of the following is FALSE? A buyer agent/broker: - -x Is not required
to advise or counsel an experienced investor-buyer in a transaction.
Should assess the needs and experience levels of their client.
Should realize that the less experienced the buyer, the more guidance and
counseling may be required by the buyer-agent.
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