POST-LICENSING 301 QUESTIONS & ANSWERS
Three sources of Agency obligations - Answer -1. Common Law
2. General Statutes
3. Commission Rules
Potential consequences when a licensee breaches agency obligations - Answer -1.
Civil liability
2. Criminal liability
3. Ethical liability
4. NCREC disciplinary actions
The commission may never ____________ a licensee as part of a disciplinary action -
Answer -fine
Fiduciary duties are important because they impact ________ that consumers have in
working with real estate professionals - Answer -trust
Fiduciary duties owed to principals - Answer -O: Obedience
L:Loyalty
D: Disclosure
C: Confidentiality
A: Accounting
R: Reasonable care
Licensees are required to follow the directions of the ________ unless those
instructions are ___________ - Answer -client
unlawful
If a client gives a licensee illegal instruction, then the licensee should
_______________________________________ - Answer -explain the illegality of the
instructions; may terminate relationship
Typical agency relationships in real estate DO NOT permit he agent to - Answer -1.
Make decisions for the client
2. Sign for the client
3. Make/accept offers on clients behalf
The obligation of loyalty requires a licensee to put the _________ interest above all
others, including ____________ - Answer -clients
your own
Obligations of Disclosure include: - Answer -1. Agency explanation
2. Material Facts
3. Interests in the transaction
, 4. Status as a licensee
Obligations of Confidentiality include: - Answer -1. Motivations
2. Finances
3. Amount willing to pay/accept
4. Personal Information
A licensee has an obligation to _____________ and ___________ handled in a real
estate transaction - Answer -safeguard
document
Licensee is required to not be _____________ and possess reasonable
________________ - Answer -negligent
knowledge and skill
Material facts must be disclosed to ____________ - Answer -all parties in the
transaction
A licensee must disclose ____________________ and ______________________ -
Answer -everything you know
everything you should know
Four categories of Material Facts - Answer -1. Facts about property itself
2. Facts that affect the property
3. Inability of any party to perform
4. Facts known to be of interest to a party
NC state law exempts a licensee from liability for failing to disclose the following -
Answer -1. Death in a property
2. Serious illness of a previous owner
3. Proximity of sex offenders
Listing a property "as is" likely means: - Answer -the seller is not considering doing any
repairs upon request
Foreclosure becomes a material fact in NC when: - Answer -Once legal notice has
been filed or recorded
What is a misrepresentation - Answer -Any information that is incorrect
Misrepresentations can be either __________ or __________ - Answer -negligent
willful
What is an omission - Answer -Any information that was not conveyed but should have
been
Three sources of Agency obligations - Answer -1. Common Law
2. General Statutes
3. Commission Rules
Potential consequences when a licensee breaches agency obligations - Answer -1.
Civil liability
2. Criminal liability
3. Ethical liability
4. NCREC disciplinary actions
The commission may never ____________ a licensee as part of a disciplinary action -
Answer -fine
Fiduciary duties are important because they impact ________ that consumers have in
working with real estate professionals - Answer -trust
Fiduciary duties owed to principals - Answer -O: Obedience
L:Loyalty
D: Disclosure
C: Confidentiality
A: Accounting
R: Reasonable care
Licensees are required to follow the directions of the ________ unless those
instructions are ___________ - Answer -client
unlawful
If a client gives a licensee illegal instruction, then the licensee should
_______________________________________ - Answer -explain the illegality of the
instructions; may terminate relationship
Typical agency relationships in real estate DO NOT permit he agent to - Answer -1.
Make decisions for the client
2. Sign for the client
3. Make/accept offers on clients behalf
The obligation of loyalty requires a licensee to put the _________ interest above all
others, including ____________ - Answer -clients
your own
Obligations of Disclosure include: - Answer -1. Agency explanation
2. Material Facts
3. Interests in the transaction
, 4. Status as a licensee
Obligations of Confidentiality include: - Answer -1. Motivations
2. Finances
3. Amount willing to pay/accept
4. Personal Information
A licensee has an obligation to _____________ and ___________ handled in a real
estate transaction - Answer -safeguard
document
Licensee is required to not be _____________ and possess reasonable
________________ - Answer -negligent
knowledge and skill
Material facts must be disclosed to ____________ - Answer -all parties in the
transaction
A licensee must disclose ____________________ and ______________________ -
Answer -everything you know
everything you should know
Four categories of Material Facts - Answer -1. Facts about property itself
2. Facts that affect the property
3. Inability of any party to perform
4. Facts known to be of interest to a party
NC state law exempts a licensee from liability for failing to disclose the following -
Answer -1. Death in a property
2. Serious illness of a previous owner
3. Proximity of sex offenders
Listing a property "as is" likely means: - Answer -the seller is not considering doing any
repairs upon request
Foreclosure becomes a material fact in NC when: - Answer -Once legal notice has
been filed or recorded
What is a misrepresentation - Answer -Any information that is incorrect
Misrepresentations can be either __________ or __________ - Answer -negligent
willful
What is an omission - Answer -Any information that was not conveyed but should have
been
