POST 301 - NC Real Estate Exam Review | 100% Correct Answers | Verified | Latest 2024 Version

Who must disclose material facts and to whom? - Only real estate brokers must discover and disclose material facts to everyone. All of the following are true EXCEPT: a) a listing agent has a higher duty to discover and disclose material facts because they have greater access to the property and information from the seller b) a broker who relies solely on what their client tells them does so at their peril. c) buyer agents can rely on the listing company's representations and have no duty to discover and disclose d) buyer agents can rely on the listing company's representations and have - c) buyer agents can rely on the listing company's representations and have no duty to discover and disclose Minimally, how many parties are there in an agency relationship and what are they called under agency law? - There must be at least two parties, one is the agent and the other is the principal Real estate companies may work with consumers under which of the following agency options? a) representing only the property owner b) representing only the buyer or tenant c) representing both parties as a dual agent d) all of the above - d) all of the above The Unfair and Deceptive Practices Act prohibits misrepresentations, omissions of material fact, and misleading advertising in a trade or business and applies to: - Real Estate Brokers Before a broker may represent a seller, the broker must have all of the following to comply with REC rules EXCEPT:a) the broker must have provided and reviewed the WWREA Disclosure and obtained the seller's signature, if possible b) the broker may have an oral listing agreement with the seller for not more than 10 days c) the agency agreement with the seller must be in writing before the broker may provide any brokerage services d) the written agency agreement should be signed by both the seller and the agent - b) the broker may have an oral listing agreement with the seller for not more than 10 days A buyer asks the listing agent whether all the appliances are in good working order. The listing agent says yes, although he hasn't personally checked any of the appliances. The buyer later discovers the dishwasher doesn't work. Which of the following is true? a) the broker is guilty of negligent omission b) the broker is guilty of willful misrepresentation c) the broker is guilty of negligent misrepresentation d) the broker isn't liable for an innocent, casual statement and the burden was on the buyer to verify the property condition during his due diligence. - c) the broker is guilty of negligent misrepresentation A broker acting as a buyer agent under a written buyer agency agreement knows the following about their buyer-client which is a material fact? a) the buyer is willing to offer $10,000 more than list price b) the buyer appears to have significant assets, but is highly leveraged c) the buyer must purchase and close within 45 days d) the buyer loses their job two weeks before settlement - d) the buyer loses their job two weeks before settlement Seller hires listing company and on the property disclosure statement says that the property is connected to city water and sewer. The seller knows that she has city water and that city sewer is available, but she never connected and is still on septic. Listing agent makes no attempt to verify and advertises the property as having city water and sewer. Who is guilty of misrepresentation? - The seller is guilty of willful misrepresentation and the listing agent is guilty of negligent misrepresentation A broker has a current buyer-client who wants to see a property formerly listed by the broker, but now listed by a different company. According to the NCREC, what should the broker disclose to their buyerclient about the seller? - The broker should tell their buyer-client what they know about the seller that may influence or affect the buyer's decision A real estate company whose policy is that it represents only the buyer or seller in a transaction is acting as: - An exclusive agent A provisional broker at her first listing presentation notices some cracks in the foundation wall during the walk-through, but doesn't ask her seller about them and says nothing in agent remarks. Seller checks "no representation" on the property disclosure form. Who may be guilty of omission? - The listing agent was aware of a potential problem, yet failed to inquire further or say anything to prospective buyers. Which of the following statements is FALSE? a) a company may be civilly liable for the actions of its affiliated licensees' actions under agency law b) a company has no civil liability for its affiliated licensees' actions because they are paid as independent contractors c) a BIC will be included in a Letter of Inquiry file