1. An agent's duties to third parties include all the follow- B) obedience.
ing EXCEPT
A) fairness.
B) obedience.
C) disclosure of material fact.
D) honesty.
2. Derrin hires Austin with Best Homes Realty to list C) Austin must disclose
his home for sale. As Austin is completing the listing that the hot water heater is
agreement, Derrin mentions that the hot water heater not working because it is a
has not worked for a couple of weeks and is not plan- material fact.
ning on repairing it since he is selling the home. Derrin
tells Austin that he cannot share that information with
anyone as it might a�ect the sale of the home. What
is the BEST course of action for Austin at this time?
A) If Austin shares the information regarding the hot
water heater, he will be in violation of his duciary du-
ties, and Derrin can sue him for disclosing con dential
information.
B) Austin can share the information with people at
Best Homes Realty but cannot share it with any rm
representing a buyer.
C) Austin must disclose that the hot water heater is not
working because it is a material fact.
D) Austin must obey the seller. Austin and Best Homes
Realty owe duciary duties to their clien
3. Armin, a broker a liated with Best Homes Realty, list- A) Courtney needs to be
ed a property for sale and conducted an open house. advised to still conduct a
Courtney visited the open house and decided to make full home inspection.
an o�er. The seller had completed the Residential
Property and Owners' Association Disclosure State-
, ment (RPOADS) indicating all defects the seller knows
that exist about the property. In this situation, which
of the following statements is TRUE?
A) Courtney needs to be advised to still conduct a full
home inspection.
B) Since the seller disclosed all known material facts,
they have complied with the Doctrine of Caveat Emp-
tor and Courtney does not need to complete a full
home inspection.
C) Since the seller disclosed all known material facts
that they were aware of, Courtney does not need to
complete a full home inspection.
D) Armin can assure Courtney that the seller has dis-
closed all material facts and she does not need to get
her own home inspection.
4. A buyer and a seller are negotiating the terms of a D) The selling agent is re-
possible contract. The seller countero�ers to the buy- sponsible for the misrep-
er, and the buyer wants to think about it overnight. resentation.
The next day the buyer calls the selling agent and
says they would like to accept the seller's countero�er.
Before verifying that the buyer had actually signed the
countero�er, the selling agent calls the listing agent to
say the buyer had accepted the seller's countero�er.
The seller then goes on to purchase another house
based on the buyer's "acceptance" of their counterof-
fer. When the selling agent goes to pick up the signed
paperwork from the buyer, the buyer states they never
signed the countero�er and do not want to buy the
seller's home. Which of the following statements is
correct?
A) The selling agent is not responsible for the misrep-
, resentation.
B) Both the buyer and the selling agent are responsi-
ble for the misrepresentation.
C) Neither the buyer
5. The real estate broker's duciary responsibility to B) disclosure.
keep the principal informed of all facts, including
property condition and issues that a�ect a seller's
willingness to sell and a buyer's willingness to buy, is
the duty of
A) reasonable skill, care, and diligence.
B) disclosure.
C) obedience.
D) accounting.
6. The duties owed from the "agent" to the "principal" D) Obedience, loyalty,
are BEST described by which of the following? disclosure, con�dentiali-
A) Obedience, loyalty, accounting, and reasonable ty, accounting, reasonable
care skill, care, and diligence
B) Fairness and honesty
C) Fairness, honest, obedience, loyalty, accounting,
reasonable skill, and care
D) Obedience, loyalty, disclosure, con dentiality, ac-
counting, reasonable skill, care, and diligence
7. Which of the following BEST describes subagent? A) Literally the agent of
A) Literally the agent of an agent, a person designated an agent, a person des-
or employed by an agent to perform all or part of the ignated or employed by
agent's assigned tasks or services on behalf of the an agent to perform all
agent's principal or part of the agent's as-
B) The person who authorizes another to act on the signed tasks or services on
principal's behalf within speci ed parameters and to
, 301 NC Post-licensing
whom the agent owes certain legal duties behalf of the agent's prin-
C) The person acting for and on behalf of the principal cipal
within the bounds of the authority granted and who
owes duciary duties to the principal
D) The relationship that exists when one person is
authorized to act for and on behalf of another
8. Which of the following statements is TRUE regarding B) Listing agreements
agency agreements? and property manage-
A) Listing agreements, property management agree- ment agreements must
ments, buyer agency agreements, and tenant repre- be express written agree-
sentation agreements can all be express oral agree- ments from the beginning
ments for a period of time. of the relationship and
B) Listing agreements and property management buyer agency agreements
agreements must be express written agreements and tenant representation
from the beginning of the relationship and buyer agreements can be in ex-
agency agreements and tenant representation agree- press oral agreements for
ments can be in express oral agreements for a period a period of time.
of time.
C) Listing agreements and buyer agency agreements
must be express written agreements from the begin-
ning of the relationship and property management
agreements and tenant representation agreements
can be express oral agreements for a period of time.
D) Listing agreements and property management
agreements can express oral agreements for a peri-
od of time and buyer agency agreements and tenant
representation agreements must be in ex
9. Which of the following statements BEST describes B) This law prohibits unfair
North Carolina Unfair Deceptive Practices Act? or deceptive acts or prac-
A) This law prohibits disclosure regarding facts about tices in commerce and ap-
ing EXCEPT
A) fairness.
B) obedience.
C) disclosure of material fact.
D) honesty.
2. Derrin hires Austin with Best Homes Realty to list C) Austin must disclose
his home for sale. As Austin is completing the listing that the hot water heater is
agreement, Derrin mentions that the hot water heater not working because it is a
has not worked for a couple of weeks and is not plan- material fact.
ning on repairing it since he is selling the home. Derrin
tells Austin that he cannot share that information with
anyone as it might a�ect the sale of the home. What
is the BEST course of action for Austin at this time?
A) If Austin shares the information regarding the hot
water heater, he will be in violation of his duciary du-
ties, and Derrin can sue him for disclosing con dential
information.
B) Austin can share the information with people at
Best Homes Realty but cannot share it with any rm
representing a buyer.
C) Austin must disclose that the hot water heater is not
working because it is a material fact.
D) Austin must obey the seller. Austin and Best Homes
Realty owe duciary duties to their clien
3. Armin, a broker a liated with Best Homes Realty, list- A) Courtney needs to be
ed a property for sale and conducted an open house. advised to still conduct a
Courtney visited the open house and decided to make full home inspection.
an o�er. The seller had completed the Residential
Property and Owners' Association Disclosure State-
, ment (RPOADS) indicating all defects the seller knows
that exist about the property. In this situation, which
of the following statements is TRUE?
A) Courtney needs to be advised to still conduct a full
home inspection.
B) Since the seller disclosed all known material facts,
they have complied with the Doctrine of Caveat Emp-
tor and Courtney does not need to complete a full
home inspection.
C) Since the seller disclosed all known material facts
that they were aware of, Courtney does not need to
complete a full home inspection.
D) Armin can assure Courtney that the seller has dis-
closed all material facts and she does not need to get
her own home inspection.
4. A buyer and a seller are negotiating the terms of a D) The selling agent is re-
possible contract. The seller countero�ers to the buy- sponsible for the misrep-
er, and the buyer wants to think about it overnight. resentation.
The next day the buyer calls the selling agent and
says they would like to accept the seller's countero�er.
Before verifying that the buyer had actually signed the
countero�er, the selling agent calls the listing agent to
say the buyer had accepted the seller's countero�er.
The seller then goes on to purchase another house
based on the buyer's "acceptance" of their counterof-
fer. When the selling agent goes to pick up the signed
paperwork from the buyer, the buyer states they never
signed the countero�er and do not want to buy the
seller's home. Which of the following statements is
correct?
A) The selling agent is not responsible for the misrep-
, resentation.
B) Both the buyer and the selling agent are responsi-
ble for the misrepresentation.
C) Neither the buyer
5. The real estate broker's duciary responsibility to B) disclosure.
keep the principal informed of all facts, including
property condition and issues that a�ect a seller's
willingness to sell and a buyer's willingness to buy, is
the duty of
A) reasonable skill, care, and diligence.
B) disclosure.
C) obedience.
D) accounting.
6. The duties owed from the "agent" to the "principal" D) Obedience, loyalty,
are BEST described by which of the following? disclosure, con�dentiali-
A) Obedience, loyalty, accounting, and reasonable ty, accounting, reasonable
care skill, care, and diligence
B) Fairness and honesty
C) Fairness, honest, obedience, loyalty, accounting,
reasonable skill, and care
D) Obedience, loyalty, disclosure, con dentiality, ac-
counting, reasonable skill, care, and diligence
7. Which of the following BEST describes subagent? A) Literally the agent of
A) Literally the agent of an agent, a person designated an agent, a person des-
or employed by an agent to perform all or part of the ignated or employed by
agent's assigned tasks or services on behalf of the an agent to perform all
agent's principal or part of the agent's as-
B) The person who authorizes another to act on the signed tasks or services on
principal's behalf within speci ed parameters and to
, 301 NC Post-licensing
whom the agent owes certain legal duties behalf of the agent's prin-
C) The person acting for and on behalf of the principal cipal
within the bounds of the authority granted and who
owes duciary duties to the principal
D) The relationship that exists when one person is
authorized to act for and on behalf of another
8. Which of the following statements is TRUE regarding B) Listing agreements
agency agreements? and property manage-
A) Listing agreements, property management agree- ment agreements must
ments, buyer agency agreements, and tenant repre- be express written agree-
sentation agreements can all be express oral agree- ments from the beginning
ments for a period of time. of the relationship and
B) Listing agreements and property management buyer agency agreements
agreements must be express written agreements and tenant representation
from the beginning of the relationship and buyer agreements can be in ex-
agency agreements and tenant representation agree- press oral agreements for
ments can be in express oral agreements for a period a period of time.
of time.
C) Listing agreements and buyer agency agreements
must be express written agreements from the begin-
ning of the relationship and property management
agreements and tenant representation agreements
can be express oral agreements for a period of time.
D) Listing agreements and property management
agreements can express oral agreements for a peri-
od of time and buyer agency agreements and tenant
representation agreements must be in ex
9. Which of the following statements BEST describes B) This law prohibits unfair
North Carolina Unfair Deceptive Practices Act? or deceptive acts or prac-
A) This law prohibits disclosure regarding facts about tices in commerce and ap-
