NC 302 Post Licensing exam questions with answers

NC 302 Post Licensing exam questions
with answers

Classifying contracts: g




Express & Implied - ANSWER: ➡ Express: Bilateral, executed
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Intentions stated (orally or written) g g g g




Implied: Unilateral, executory
g g




Inferred from conduct or actions
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Classifying contracts: g




Bilateral & Unilateral - ANSWER: ➡ Bilateral - two promises (both parties bound to do
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something)
g




Unilateral - Only one party is bound
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Classifying Contracts: g




Executed & Executory - ANSWER: ➡ Executed - All tasks performed (After closing)
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Executory - tasks remaining to be done (before closing)
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Statute of Frauds - ANSWER: ➡ Everything needs to be in writing
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DREAM OILS (Statute of Frauds) - ANSWER: ➡ Deeds
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Restrictive covenants g




Easements

,Assignments
Mortgages
Options
Installment Land Contracts g g




Leases - longer than 3 yearsg g g g g




Sales Contracts g




Offer & Acceptance - ANSWER: ➡ Seller (OfferEE) & Buyer (OfferOR) -- ORs GIVE, EEs
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RECEIVE
g




OfferOR may revoke or withdraw the offer anytime prior to acceptance
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OfferEE can accept, reject or counter -- and when they counter, they are now the offerEE
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This counter offer VOIDS original offer
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All offers must be communicated
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Deliver all offers immediately but never later than 3 days
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Retention of Records 58A.108 - ANSWER: ➡ A broker must provide copies of transaction
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documents:
g




- To the Firm or Sole Proprietorship (BIC) with which they are affiliated
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- Within 3 days
g g g




- Keep records for 3 years after
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Closing
Termination of Agency g g




Disbursement of Trust Monies g g g




WHICHEVER OCCURS LAST g g




Brokers and BIC are responsible for keeping records in a transaction
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These are CALENDAR days, not business days
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You don't count the day it was executed/received (if received Tuesday, have to upload by
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Friday)
g

,Buyer's Rights w/ an offer - ANSWER: ➡ A buyer has the absolute right of withdraw/revoke
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Even if offer stated it would be held open longer
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The withdraw must be communicated to the other party and/or their agent
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An offer is terminated any time: - ANSWER: ➡ Counter offer
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Rejection by the offeree g g g




Revocation by the offeror g g g




Destruction of the property (Think hurricane) g g g g g




Death or insanity of the offeror
g g g g g




Agent Guidelines w/ offers - ANSWER: ➡ A listing broker or agent is required to respond in
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writing that an offer was submitted if the cooperating broker who submitted the offer so
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requests
g




The listing broker or agent must respond in the affirmative unless the seller has provided
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written notification waiving the obligation to have the offer presented
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Agent has to present all offers all the way throughout the contract, up to closing
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Creation of a counter offer - ANSWER: ➡ Any change in an offer, no matter how small creates a
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counter offer
g g




Counter offer must be accepted and communicated to the other party to create a contract
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Proper use of From 340-T: NCAR Response to Buyer's Offer
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A valid contract is formed when a contract is signed, delivered and communicated - ANSWER:
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➡ "Communicating an offer or an acceptance to a principal's agent is the same as
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communicating directly to the principal"
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Beware Dual Agency is Communication is IMMEDIATE - ANSWER: ➡ When a dual agent has
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been informed that the seller has accepted an offer is already considered communicated to the
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buyer
g

, Methods of communicating acceptance: - ANSWER: ➡ Oral
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Personal delivery g




Mail or FedEx
g g




Electronic communication g




The mailbox rule - ANSWER: ➡ : We measure delivery from when it is SENT, not RECEIVED
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(Page 280)
g g




Mutual Mistakes - ANSWER: ➡ Mistake of "Material Fact" - read pg. 283 - 284
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May allow buyer to rescind the contract and be refunded all monies
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Does NOT apply to "Mistakes of Law"
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Fraud & Misrepresentation - ANSWER: ➡ Fraud makes contracts voidable
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Willful misrepresentations or omissions
g g g




Of material facts
g g




Make the contract voidable by the person deceived
g g g g g g g




Unfair or deceptive trade practices act: - ANSWER: ➡ A misleading opinion or false
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inducement
g




Fails to disclose material facts
g g g g




Misleading advertising g




Misrepresentation of the nature of a guarantee g g g g g g




This applies to real estate professionals and sellers who regularly trade in the business
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Does not apply to an owner who does not regularly act in the business
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Discharge of Contracts: [TEST QUESTION] p g. 290-291 - ANSWER: ➡ Release
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Novation (the substitution of a new contract in place of an old one)
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