Superior NC Real Estate Question and Answer
A+ Verified 100% Correct Questions and
Answers
‣ Designated agency can be practiced:
I. Between two firms II. Between a broker-in-charge and a provisional broker
licensee in their office
A. I only
B. II only
C. Both I and II
D. Neither I nor II. Answer: D. Neither I nor II
‣ Under the general principles of agency, when a licensee is acting on behalf of a
client and acts improperly who is liable for the acts of the licensee?
A. only the client
B. only the licensee and the broker-in-charge
C. only the client and the licensee
D. the client, the licensee, the firm and or the broker-in-charge. Answer: D. the
client, the licensee, the firm and or the broker-in-charge
‣ A disclosure of agency status should be made by a buyer's agent to the seller:
l. With a written confirmation in the offer to purchase and contract ll. At the initial
contact with the seller's agent, orally or in writing
A. l only
B. ll only
C. Both l and ll
D. Neither l nor ll. Answer: C. Both l and ll
‣ Which of the following would be dual agency?
A. a broker-in-charge assisting a buyer client in the purchase of property that was
listed by a provisional broker of another firm
B. a provisional broker and a broker licensee from firms that are cooperating in a
transaction
C. a firm that represents buyers and sellers
,D. a broker having a buyer client for a property the broker personally listed.
Answer: D. a broker having a buyer client for a property the broker personally
listed
‣ A parcel of vacant land 80 feet wide and 200 feet deep was sold for $200 per
front foot. How much money would an individual agent receive for a 60% share of
the 10% commission earned?
A. $640
B. $960
C. $1,600
D. $2,400. Answer: B. $960
‣ A buyer-client has instructed the agent to show only properties where the seller is
willing to pay the buyer agent's commission. The agent contacts an owner selling a
property without the assistance of a real estate agent with the hope that the seller
would be willing to pay her commission if the buyer decided to purchase the
seller's property. In order to comply with North Carolina Real Estate Commission
Rules, the agent must do all of the following, EXCEPT:
A. obtain permission from her buyer-client in order to obtain compensation from
the seller
B. disclose her agency status to the seller at initial contact
C. convince the seller to list with her and authorize dual agency
D. provide the Working with Real Estate Agents brochure to the seller. Answer: C.
convince the seller to list with her and authorize dual agency
‣ If the broker-in-charge (BIC) is to act as one of the designated agents on a North
Carolina in-house transaction, which of the following may be appointed as a
designated agent for the other party to the transaction?
A. an actively licensed provisional broker within the firm, so long as disclosure is
made to both clients
B. a full broker within the firm who has no prior confidential knowledge of the
party that the BIC will represent
C. a broker-in-charge cannot be appointed as a designated agent
D. a licensed broker who has prior confidential knowledge about the party that the
BIC will represent. Answer: B. a full broker within the firm who has no prior
confidential knowledge of the party that the BIC will represent
, ‣ A licensee is an actively licensed real estate broker who has a written contract
with his firm that specifies that he will not be treated like an employee. The
licensee's entire income is from sales commissions rather than an hourly wage.
Based on these facts, the licensee will be treated by the IRS as:
A. a real estate assistant
B. an employee
C. a subagent
D. an independent contractor. Answer: D. an independent contractor
‣ All of the following are TRUE regarding the North Carolina Working With Real
Estate Agents brochure, EXCEPT:
A. the consumer is not required to sign the brochure
B. if the first substantial contact is by phone, the brochure must be provided within
3 calendar days
C. the brochure's use is mandatory in all real estate transactions, including
residential sales, commercial transactions and property management
D. the brochure must be given in all sales transactions at first substantial contact.
Answer: C. the brochure's use is mandatory in all real estate transactions, including
residential sales, commercial transactions and property management
‣ All of the following are exempt from the requirement to provide an RPOADS and
MOG, EXCEPT:
A. Transfers between spouses
B. First sale of a dwelling not yet inhabited
C. Both parties agree not to complete the form
D. A For Sale by Owner. Answer: D. A For Sale by Owner
‣ Which of the following statement(s) is/are true?
l. In a breach of a sales contract, the earnest money deposit is considered liquidated
damages. ll. In a breach of a sales contract, liquidated damages are an agreed upon
amount of money the parties agree to accept in the event of breach.
A. l only
B. ll only
C. Both l and ll
D. Neither l nor ll. Answer: C. Both l and ll
A+ Verified 100% Correct Questions and
Answers
‣ Designated agency can be practiced:
I. Between two firms II. Between a broker-in-charge and a provisional broker
licensee in their office
A. I only
B. II only
C. Both I and II
D. Neither I nor II. Answer: D. Neither I nor II
‣ Under the general principles of agency, when a licensee is acting on behalf of a
client and acts improperly who is liable for the acts of the licensee?
A. only the client
B. only the licensee and the broker-in-charge
C. only the client and the licensee
D. the client, the licensee, the firm and or the broker-in-charge. Answer: D. the
client, the licensee, the firm and or the broker-in-charge
‣ A disclosure of agency status should be made by a buyer's agent to the seller:
l. With a written confirmation in the offer to purchase and contract ll. At the initial
contact with the seller's agent, orally or in writing
A. l only
B. ll only
C. Both l and ll
D. Neither l nor ll. Answer: C. Both l and ll
‣ Which of the following would be dual agency?
A. a broker-in-charge assisting a buyer client in the purchase of property that was
listed by a provisional broker of another firm
B. a provisional broker and a broker licensee from firms that are cooperating in a
transaction
C. a firm that represents buyers and sellers
,D. a broker having a buyer client for a property the broker personally listed.
Answer: D. a broker having a buyer client for a property the broker personally
listed
‣ A parcel of vacant land 80 feet wide and 200 feet deep was sold for $200 per
front foot. How much money would an individual agent receive for a 60% share of
the 10% commission earned?
A. $640
B. $960
C. $1,600
D. $2,400. Answer: B. $960
‣ A buyer-client has instructed the agent to show only properties where the seller is
willing to pay the buyer agent's commission. The agent contacts an owner selling a
property without the assistance of a real estate agent with the hope that the seller
would be willing to pay her commission if the buyer decided to purchase the
seller's property. In order to comply with North Carolina Real Estate Commission
Rules, the agent must do all of the following, EXCEPT:
A. obtain permission from her buyer-client in order to obtain compensation from
the seller
B. disclose her agency status to the seller at initial contact
C. convince the seller to list with her and authorize dual agency
D. provide the Working with Real Estate Agents brochure to the seller. Answer: C.
convince the seller to list with her and authorize dual agency
‣ If the broker-in-charge (BIC) is to act as one of the designated agents on a North
Carolina in-house transaction, which of the following may be appointed as a
designated agent for the other party to the transaction?
A. an actively licensed provisional broker within the firm, so long as disclosure is
made to both clients
B. a full broker within the firm who has no prior confidential knowledge of the
party that the BIC will represent
C. a broker-in-charge cannot be appointed as a designated agent
D. a licensed broker who has prior confidential knowledge about the party that the
BIC will represent. Answer: B. a full broker within the firm who has no prior
confidential knowledge of the party that the BIC will represent
, ‣ A licensee is an actively licensed real estate broker who has a written contract
with his firm that specifies that he will not be treated like an employee. The
licensee's entire income is from sales commissions rather than an hourly wage.
Based on these facts, the licensee will be treated by the IRS as:
A. a real estate assistant
B. an employee
C. a subagent
D. an independent contractor. Answer: D. an independent contractor
‣ All of the following are TRUE regarding the North Carolina Working With Real
Estate Agents brochure, EXCEPT:
A. the consumer is not required to sign the brochure
B. if the first substantial contact is by phone, the brochure must be provided within
3 calendar days
C. the brochure's use is mandatory in all real estate transactions, including
residential sales, commercial transactions and property management
D. the brochure must be given in all sales transactions at first substantial contact.
Answer: C. the brochure's use is mandatory in all real estate transactions, including
residential sales, commercial transactions and property management
‣ All of the following are exempt from the requirement to provide an RPOADS and
MOG, EXCEPT:
A. Transfers between spouses
B. First sale of a dwelling not yet inhabited
C. Both parties agree not to complete the form
D. A For Sale by Owner. Answer: D. A For Sale by Owner
‣ Which of the following statement(s) is/are true?
l. In a breach of a sales contract, the earnest money deposit is considered liquidated
damages. ll. In a breach of a sales contract, liquidated damages are an agreed upon
amount of money the parties agree to accept in the event of breach.
A. l only
B. ll only
C. Both l and ll
D. Neither l nor ll. Answer: C. Both l and ll
