NC POST LICENSING 303 EXAM SCRIPT
COMPLETE QUESTIONS AND ANSWERS
TEST PAPER QUESTIONS AND SOLUTIONS
GRADED A+
⩥ What is the definition of a fiduciary relationship?
Answer: 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?
Answer: Yes.
⩥ What are some possible consequences of violating Agency
Law?
Answer: 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?
Answer: No.
,⩥ What are the four categories of material facts?
Answer: 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?
Answer: No.
⩥ Is a gravesite located on a property a material fact?
Answer: Yes.
⩥ Is property located in an airport approach flight path a
material fact?
Answer: Yes.
,⩥ If a material fact is detrimental to the seller, can the listing
broker withhold it from the buyer?
Answer: No.
⩥ Can a broker refuse to obey a seller client's instruction to
withhold a material fact about the property?
Answer: Yes.
⩥ Can a broker advise a buyer on how to take title to the
property?
Answer: No.
⩥ Can a listing broker disclose to a buyer how much the seller is
willing to accept for the property?
Answer: No.
⩥ Can a buyer agent withhold information from the seller about
the buyer's inability to obtain funds?
Answer: No.
⩥ If the broker is acting as a buyer agent, does that relieve the
broker from disclosing material facts to the seller?
, Answer: No.
⩥ If a material fact is a matter of public record, is the listing
broker still required to tell the buyer or seller?
Answer: Yes.
⩥ Does using a limited-service agreement remove the
requirement of the broker to discover and disclose material
facts?
Answer: No.
⩥ What does Caveat Emptor mean?
Answer: Let the Buyer Beware; the seller has no duty to disclose
known facts about the property.
⩥ Does North Carolina honor the Doctrine of Caveat Emptor?
Answer: Yes.
⩥ In North Carolina, do sellers have to disclose material facts to
buyers?
Answer: No.
COMPLETE QUESTIONS AND ANSWERS
TEST PAPER QUESTIONS AND SOLUTIONS
GRADED A+
⩥ What is the definition of a fiduciary relationship?
Answer: 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?
Answer: Yes.
⩥ What are some possible consequences of violating Agency
Law?
Answer: 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?
Answer: No.
,⩥ What are the four categories of material facts?
Answer: 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?
Answer: No.
⩥ Is a gravesite located on a property a material fact?
Answer: Yes.
⩥ Is property located in an airport approach flight path a
material fact?
Answer: Yes.
,⩥ If a material fact is detrimental to the seller, can the listing
broker withhold it from the buyer?
Answer: No.
⩥ Can a broker refuse to obey a seller client's instruction to
withhold a material fact about the property?
Answer: Yes.
⩥ Can a broker advise a buyer on how to take title to the
property?
Answer: No.
⩥ Can a listing broker disclose to a buyer how much the seller is
willing to accept for the property?
Answer: No.
⩥ Can a buyer agent withhold information from the seller about
the buyer's inability to obtain funds?
Answer: No.
⩥ If the broker is acting as a buyer agent, does that relieve the
broker from disclosing material facts to the seller?
, Answer: No.
⩥ If a material fact is a matter of public record, is the listing
broker still required to tell the buyer or seller?
Answer: Yes.
⩥ Does using a limited-service agreement remove the
requirement of the broker to discover and disclose material
facts?
Answer: No.
⩥ What does Caveat Emptor mean?
Answer: Let the Buyer Beware; the seller has no duty to disclose
known facts about the property.
⩥ Does North Carolina honor the Doctrine of Caveat Emptor?
Answer: Yes.
⩥ In North Carolina, do sellers have to disclose material facts to
buyers?
Answer: No.
