NORTH CAROLINA POST LICENSING
301 EXAM QUESTIONS AND
ANSWERS 2026 VERIFIED.
What are the basic duties that an agent owes a principal under Agency Law? - ANS Loyalty,
confidentiality, obedience, accounting, disclosure, skill, care, and diligence.
What is the definition of a fiduciary relationship? - ANS A person who acts for another in a
relationship of trust, obligated to act in the other's best interests.
Does violating Agency Law also violate Real Estate License Law? - ANS Yes.
What are some possible consequences of violating Agency Law? - ANS Revocation or
suspension of real estate license, civil liability, loss of commission.
Can the Real Estate Commission fine a broker for violating Real Estate License Law? - ANS No.
What are the four categories of material facts? - ANS 1. Facts about the property itself (e.g.,
HVAC system does not work). 2. Facts that relate directly to the property (e.g., state approved
plans for a four-lane bypass). 3. Facts directly affecting the principal's ability to complete the
transaction (e.g., seller unable to convey clear title). 4. Facts known to be of special importance
to a party (e.g., current zoning will not permit intended use).
Is the death or murder of a previous tenant on the property a material fact? - ANS No.
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, Is a gravesite located on a property a material fact? - ANS Yes.
Is property located in an airport approach flight path a material fact? - ANS Yes.
If a material fact is detrimental to the seller, can the listing broker withhold it from the buyer? -
ANS No.
Can a broker refuse to obey a seller client's instruction to withhold a material fact about the
property? - ANS Yes.
Can a broker advise a buyer on how to take title to the property? - ANS No.
Can a listing broker disclose to a buyer how much the seller is willing to accept for the property?
- ANS No.
Can a buyer agent withhold information from the seller about the buyer's inability to obtain
funds? - ANS No.
If the broker is acting as a buyer agent, does that relieve the broker from disclosing material
facts to the seller? - ANS No.
If a material fact is a matter of public record, is the listing broker still required to tell the buyer
or seller? - ANS Yes.
Does using a limited-service agreement remove the requirement of the broker to discover and
disclose material facts? - ANS No.
What does Caveat Emptor mean? - ANS Let the Buyer Beware; the seller has no duty to
disclose known facts about the property.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 15
301 EXAM QUESTIONS AND
ANSWERS 2026 VERIFIED.
What are the basic duties that an agent owes a principal under Agency Law? - ANS Loyalty,
confidentiality, obedience, accounting, disclosure, skill, care, and diligence.
What is the definition of a fiduciary relationship? - ANS A person who acts for another in a
relationship of trust, obligated to act in the other's best interests.
Does violating Agency Law also violate Real Estate License Law? - ANS Yes.
What are some possible consequences of violating Agency Law? - ANS Revocation or
suspension of real estate license, civil liability, loss of commission.
Can the Real Estate Commission fine a broker for violating Real Estate License Law? - ANS No.
What are the four categories of material facts? - ANS 1. Facts about the property itself (e.g.,
HVAC system does not work). 2. Facts that relate directly to the property (e.g., state approved
plans for a four-lane bypass). 3. Facts directly affecting the principal's ability to complete the
transaction (e.g., seller unable to convey clear title). 4. Facts known to be of special importance
to a party (e.g., current zoning will not permit intended use).
Is the death or murder of a previous tenant on the property a material fact? - ANS No.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 15
, Is a gravesite located on a property a material fact? - ANS Yes.
Is property located in an airport approach flight path a material fact? - ANS Yes.
If a material fact is detrimental to the seller, can the listing broker withhold it from the buyer? -
ANS No.
Can a broker refuse to obey a seller client's instruction to withhold a material fact about the
property? - ANS Yes.
Can a broker advise a buyer on how to take title to the property? - ANS No.
Can a listing broker disclose to a buyer how much the seller is willing to accept for the property?
- ANS No.
Can a buyer agent withhold information from the seller about the buyer's inability to obtain
funds? - ANS No.
If the broker is acting as a buyer agent, does that relieve the broker from disclosing material
facts to the seller? - ANS No.
If a material fact is a matter of public record, is the listing broker still required to tell the buyer
or seller? - ANS Yes.
Does using a limited-service agreement remove the requirement of the broker to discover and
disclose material facts? - ANS No.
What does Caveat Emptor mean? - ANS Let the Buyer Beware; the seller has no duty to
disclose known facts about the property.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 15
