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NC 302 Post Licensing Exam with verified detailed answers
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Classifying contracts: ||
Express & Implied - ✔✔Express: Bilateral, executed
|| || || || || ||
Intentions stated (orally or written) || || || ||
Implied: Unilateral, executory
|| ||
Inferred from conduct or actions
|| || || ||
Classifying contracts: ||
Bilateral & Unilateral - ✔✔Bilateral - two promises (both parties bound to do something)
|| || || || || || || || || || || || ||
Unilateral - Only one party is bound || || || || || ||
Classifying Contracts: ||
Executed & Executory - ✔✔Executed - All tasks performed (After closing)
|| || || || || || || || || ||
Executory - tasks remaining to be done (before closing)
|| || || || || || || ||
Statute of Frauds - ✔✔Everything needs to be in writing
|| || || || || || || || ||
DREAM OILS (Statute of Frauds) - ✔✔Deeds
|| || || || || ||
Restrictive covenants ||
Easements
Assignments
,2
Mortgages
Options
Installment Land Contracts || ||
Leases - longer than 3 years || || || || ||
Sales Contracts ||
Offer & Acceptance - ✔✔Seller (OfferEE) & Buyer (OfferOR) -- ORs GIVE, EEs RECEIVE
|| || || || || || || || || || || || ||
OfferOR may revoke or withdraw the offer anytime prior to acceptance
|| || || || || || || || || || ||
OfferEE can accept, reject or counter -- and when they counter, they are now the offerEE
|| || || || || || || || || || || || || || ||
This counter offer VOIDS original offer
|| || || || ||
All offers must be communicated
|| || || ||
Deliver all offers immediately but never later than 3 days
|| || || || || || || || ||
Retention of Records 58A.108 - ✔✔A broker must provide copies of transaction documents:
|| || || || || || || || || || || ||
- To the Firm or Sole Proprietorship (BIC) with which they are affiliated
|| || || || || || || || || || || ||
- Within 3 days
|| || ||
- Keep records for 3 years after
|| || || || || ||
Closing
Termination of Agency || ||
Disbursement of Trust Monies || || ||
WHICHEVER OCCURS LAST || ||
Brokers and BIC are responsible for keeping records in a transaction
|| || || || || || || || || ||
These are CALENDAR days, not business days
|| || || || || || ||
You don't count the day it was executed/received (if received Tuesday, have to upload by
|| || || || || || || || || || || || || || ||
Friday)
,2
Buyer's Rights w/ an offer - ✔✔A buyer has the absolute right of withdraw/revoke
|| || || || || || || || || || || || ||
Even if offer stated it would be held open longer
|| || || || || || || || ||
The withdraw must be communicated to the other party and/or their agent
|| || || || || || || || || || ||
An offer is terminated any time: - ✔✔Counter offer
|| || || || || || || ||
Rejection by the offeree || || ||
Revocation by the offeror || || ||
Destruction of the property (Think hurricane) || || || || ||
Death or insanity of the offeror
|| || || || ||
Agent Guidelines w/ offers - ✔✔A listing broker or agent is required to respond in writing
|| || || || || || || || || || || || || || || ||
that an offer was submitted if the cooperating broker who submitted the offer so requests
|| || || || || || || || || || || || || ||
The listing broker or agent must respond in the affirmative unless the seller has provided
|| || || || || || || || || || || || || || ||
written notification waiving the obligation to have the offer presented
|| || || || || || || || ||
Agent has to present all offers all the way throughout the contract, up to closing
|| || || || || || || || || || || || || ||
Creation of a counter offer - ✔✔Any change in an offer, no matter how small creates a
|| || || || || || || || || || || || || || || || ||
counter offer ||
Counter offer must be accepted and communicated to the other party to create a contract
|| || || || || || || || || || || || || ||
Proper use of From 340-T: NCAR Response to Buyer's Offer
|| || || || || || || || ||
A valid contract is formed when a contract is signed, delivered and communicated -
|| || || || || || || || || || || || || ||
✔✔"Communicating an offer or an acceptance to a principal's agent is the same as || || || || || || || || || || || || || ||
communicating directly to the principal" || || || ||
Beware Dual Agency is Communication is IMMEDIATE - ✔✔When a dual agent has been
|| || || || || || || || || || || || || ||
informed that the seller has accepted an offer is already considered communicated to the
|| || || || || || || || || || || || || ||
buyer
, 2
Methods of communicating acceptance: - ✔✔Oral || || || || ||
Personal delivery ||
Mail or FedEx|| ||
Electronic communication ||
The mailbox rule - ✔✔: We measure delivery from when it is SENT, not RECEIVED (Page
|| || || || || || || || || || || || || || || ||
280)
Mutual Mistakes - ✔✔Mistake of "Material Fact" - read pg. 283 - 284
|| || || || || || || || || || || ||
May allow buyer to rescind the contract and be refunded all monies
|| || || || || || || || || || ||
Does NOT apply to "Mistakes of Law"
|| || || || || ||
Fraud & Misrepresentation - ✔✔Fraud makes contracts voidable
|| || || || || || || ||
Willful misrepresentations or omissions
|| || ||
Of material facts
|| ||
Make the contract voidable by the person deceived
|| || || || || || ||
Unfair or deceptive trade practices act: - ✔✔A misleading opinion or false inducement
|| || || || || || || || || || || ||
Fails to disclose material facts
|| || || ||
Misleading advertising ||
Misrepresentation of the nature of a guarantee || || || || || ||
This applies to real estate professionals and sellers who regularly trade in the business
|| || || || || || || || || || || || ||
Does not apply to an owner who does not regularly act in the business
|| || || || || || || || || || || || ||
NC 302 Post Licensing Exam with verified detailed answers
|| || || || || || || ||
Classifying contracts: ||
Express & Implied - ✔✔Express: Bilateral, executed
|| || || || || ||
Intentions stated (orally or written) || || || ||
Implied: Unilateral, executory
|| ||
Inferred from conduct or actions
|| || || ||
Classifying contracts: ||
Bilateral & Unilateral - ✔✔Bilateral - two promises (both parties bound to do something)
|| || || || || || || || || || || || ||
Unilateral - Only one party is bound || || || || || ||
Classifying Contracts: ||
Executed & Executory - ✔✔Executed - All tasks performed (After closing)
|| || || || || || || || || ||
Executory - tasks remaining to be done (before closing)
|| || || || || || || ||
Statute of Frauds - ✔✔Everything needs to be in writing
|| || || || || || || || ||
DREAM OILS (Statute of Frauds) - ✔✔Deeds
|| || || || || ||
Restrictive covenants ||
Easements
Assignments
,2
Mortgages
Options
Installment Land Contracts || ||
Leases - longer than 3 years || || || || ||
Sales Contracts ||
Offer & Acceptance - ✔✔Seller (OfferEE) & Buyer (OfferOR) -- ORs GIVE, EEs RECEIVE
|| || || || || || || || || || || || ||
OfferOR may revoke or withdraw the offer anytime prior to acceptance
|| || || || || || || || || || ||
OfferEE can accept, reject or counter -- and when they counter, they are now the offerEE
|| || || || || || || || || || || || || || ||
This counter offer VOIDS original offer
|| || || || ||
All offers must be communicated
|| || || ||
Deliver all offers immediately but never later than 3 days
|| || || || || || || || ||
Retention of Records 58A.108 - ✔✔A broker must provide copies of transaction documents:
|| || || || || || || || || || || ||
- To the Firm or Sole Proprietorship (BIC) with which they are affiliated
|| || || || || || || || || || || ||
- Within 3 days
|| || ||
- Keep records for 3 years after
|| || || || || ||
Closing
Termination of Agency || ||
Disbursement of Trust Monies || || ||
WHICHEVER OCCURS LAST || ||
Brokers and BIC are responsible for keeping records in a transaction
|| || || || || || || || || ||
These are CALENDAR days, not business days
|| || || || || || ||
You don't count the day it was executed/received (if received Tuesday, have to upload by
|| || || || || || || || || || || || || || ||
Friday)
,2
Buyer's Rights w/ an offer - ✔✔A buyer has the absolute right of withdraw/revoke
|| || || || || || || || || || || || ||
Even if offer stated it would be held open longer
|| || || || || || || || ||
The withdraw must be communicated to the other party and/or their agent
|| || || || || || || || || || ||
An offer is terminated any time: - ✔✔Counter offer
|| || || || || || || ||
Rejection by the offeree || || ||
Revocation by the offeror || || ||
Destruction of the property (Think hurricane) || || || || ||
Death or insanity of the offeror
|| || || || ||
Agent Guidelines w/ offers - ✔✔A listing broker or agent is required to respond in writing
|| || || || || || || || || || || || || || || ||
that an offer was submitted if the cooperating broker who submitted the offer so requests
|| || || || || || || || || || || || || ||
The listing broker or agent must respond in the affirmative unless the seller has provided
|| || || || || || || || || || || || || || ||
written notification waiving the obligation to have the offer presented
|| || || || || || || || ||
Agent has to present all offers all the way throughout the contract, up to closing
|| || || || || || || || || || || || || ||
Creation of a counter offer - ✔✔Any change in an offer, no matter how small creates a
|| || || || || || || || || || || || || || || || ||
counter offer ||
Counter offer must be accepted and communicated to the other party to create a contract
|| || || || || || || || || || || || || ||
Proper use of From 340-T: NCAR Response to Buyer's Offer
|| || || || || || || || ||
A valid contract is formed when a contract is signed, delivered and communicated -
|| || || || || || || || || || || || || ||
✔✔"Communicating an offer or an acceptance to a principal's agent is the same as || || || || || || || || || || || || || ||
communicating directly to the principal" || || || ||
Beware Dual Agency is Communication is IMMEDIATE - ✔✔When a dual agent has been
|| || || || || || || || || || || || || ||
informed that the seller has accepted an offer is already considered communicated to the
|| || || || || || || || || || || || || ||
buyer
, 2
Methods of communicating acceptance: - ✔✔Oral || || || || ||
Personal delivery ||
Mail or FedEx|| ||
Electronic communication ||
The mailbox rule - ✔✔: We measure delivery from when it is SENT, not RECEIVED (Page
|| || || || || || || || || || || || || || || ||
280)
Mutual Mistakes - ✔✔Mistake of "Material Fact" - read pg. 283 - 284
|| || || || || || || || || || || ||
May allow buyer to rescind the contract and be refunded all monies
|| || || || || || || || || || ||
Does NOT apply to "Mistakes of Law"
|| || || || || ||
Fraud & Misrepresentation - ✔✔Fraud makes contracts voidable
|| || || || || || || ||
Willful misrepresentations or omissions
|| || ||
Of material facts
|| ||
Make the contract voidable by the person deceived
|| || || || || || ||
Unfair or deceptive trade practices act: - ✔✔A misleading opinion or false inducement
|| || || || || || || || || || || ||
Fails to disclose material facts
|| || || ||
Misleading advertising ||
Misrepresentation of the nature of a guarantee || || || || || ||
This applies to real estate professionals and sellers who regularly trade in the business
|| || || || || || || || || || || || ||
Does not apply to an owner who does not regularly act in the business
|| || || || || || || || || || || || ||
