NC POST LICENSING 301 PRACTICE EXAM 1
88/100 QUESTIONS WITH 100% ACCURATE
ANSWERS
1/50 Under which of the following circumstances would the client and agent most likely mutually agree
to terminate a listing?
a A buyer approached the seller with a much higher offer than the current listing price.
b The agent and client don't agree on the best way to price, maintain, and market the property.
c The client has found a buyer and wants to avoid paying a commission.
d The client's cousin just became licensed and needs her first listing. - Accurate answers b The
agent and client don't agree on the best way to price, maintain, and market the property.
2/50 Tabitha listed her property for sale, but it's been on the market for several months with no offers.
She decides to terminate her listing agreement and rent the property out instead of selling it. Assuming
that her listing agent has fulfilled all of his responsibilities under the contract, can Tabitha terminate the
contract before its expiration date?
a Only if she and the listing agent mutually agree to terminate the agreement.
b Only if she succeeds in converting it to a rental.
c Yes because she's received no offers on the listing.
d Yes, she is entitled to terminate at any time. - Accurate answers a Only if she and the listing
agent mutually agree to terminate the agreement.
3/50 As a North Carolina property manager, which of the following is Luisa required to do?
a Act as the landlord's representative in all matters, including legal counsel.
b Advocate for the tenants' interests above all others.
c Avoid performing any actions that would constitute a landlord's duties.
d Perform the duties of a landlord, as laid out in statute and the lease. - Accurate answers Perform
the duties of a landlord, as laid out in statute and the lease.
4/50 It's January, and the pool at Roger's listing has been prepped for winter for several weeks. The
homeowner assures Roger that it's in good working order. Roger has no reason to disbelieve the
homeowner, so he tells prospective buyers that the pool is fine. The property sells, spring comes, and
the new owners call to complain that the pump doesn't work, and the pool drain appears to be clogged.
What did Roger commit?
a Fraud
b Negligent misrepresentation
c Roger did not commit a violation
d Unintentional misrepresentation - Accurate answers d Unintentional misrepresentation
5/50 ______ occurs when one licensee represents both the buyer and seller in the same transaction
without proper disclosure and consent.
a A breach of contract
, b A conflict of interest Wrong
c Disclosed dual agency
d Undisclosed dual agency - Accurate answers d Undisclosed dual agency
6/10 Which of the following is a true statement about an MLS and sellers?
a An MLS is available via a fee-based subscription and is an option that most sellers prefer.
b An MLS is exclusive to members of the National Association of REALTORS®.
c For most sellers, marketing on an MLS is not cost effective.
d Sellers are required to market their properties on an MLS if they're working with a real estate licensee.
- Accurate answers a An MLS is available via a fee-based subscription and is an option that most
sellers prefer.
7/50 All North Carolina listing agreements must ______.
a Be signed by both the buyer and the seller
b Contain discriminatory language
c Have a six-month term
d Include the listing broker's license number - Accurate answers Include the listing broker's license
number
8/50 Which of these situations is an example of designated agency?
a Cindy's broker at Homeworks Realty appoints her as the buyer's agent in a transaction. Tim's broker at
Great Homes Real Estate appoints him as the seller's broker in the same transaction.
b Meredith's broker appoints her to represent both the buyer and the seller in a single transaction.
c Michele is the firm's managing broker. She's the designated dual agent in all dual agency transactions.
d The broker-in-charge at ABC Realty appoints Mark to represent the buyer and Todd to represent the
seller in the same transaction. - Accurate answers d The broker-in-charge at ABC Realty appoints
Mark to represent the buyer and Todd to represent the seller in the same transaction.
9/50 Negligent misrepresentation occurs when which of the following takes place?
a One party makes a claim and provides supporting evidence.
b One party makes a statement without reason or evidence to believe the statement is true.
c One party states something that is hearsay.
d One party states something that is known to be false - Accurate answers b One party makes a
statement without reason or evidence to
Negligent misrepresentation occurs when someone makes a statement without regard to the true facts.
10/50 Return on investment is another name for what?
a Capitalization rate
b Capital recapture
c Dividends
d The profit made from an investment - Accurate answers d The profit made from an investment
Return on investment is the profit made from an investment, and is often referred to as ROI. It's usually
expressed as an interest rate or discount rate.Wrong a Capitalization rate
The capitalization rate is the rate of return on a real estate investment property based on the income
that the property is expected to generate.
12/50 When you talk with your seller client Margo about the required seller disclosure form, she's
hesitant to say anything about the "quirks," as she calls them, with the plumbing systems. She wants to
88/100 QUESTIONS WITH 100% ACCURATE
ANSWERS
1/50 Under which of the following circumstances would the client and agent most likely mutually agree
to terminate a listing?
a A buyer approached the seller with a much higher offer than the current listing price.
b The agent and client don't agree on the best way to price, maintain, and market the property.
c The client has found a buyer and wants to avoid paying a commission.
d The client's cousin just became licensed and needs her first listing. - Accurate answers b The
agent and client don't agree on the best way to price, maintain, and market the property.
2/50 Tabitha listed her property for sale, but it's been on the market for several months with no offers.
She decides to terminate her listing agreement and rent the property out instead of selling it. Assuming
that her listing agent has fulfilled all of his responsibilities under the contract, can Tabitha terminate the
contract before its expiration date?
a Only if she and the listing agent mutually agree to terminate the agreement.
b Only if she succeeds in converting it to a rental.
c Yes because she's received no offers on the listing.
d Yes, she is entitled to terminate at any time. - Accurate answers a Only if she and the listing
agent mutually agree to terminate the agreement.
3/50 As a North Carolina property manager, which of the following is Luisa required to do?
a Act as the landlord's representative in all matters, including legal counsel.
b Advocate for the tenants' interests above all others.
c Avoid performing any actions that would constitute a landlord's duties.
d Perform the duties of a landlord, as laid out in statute and the lease. - Accurate answers Perform
the duties of a landlord, as laid out in statute and the lease.
4/50 It's January, and the pool at Roger's listing has been prepped for winter for several weeks. The
homeowner assures Roger that it's in good working order. Roger has no reason to disbelieve the
homeowner, so he tells prospective buyers that the pool is fine. The property sells, spring comes, and
the new owners call to complain that the pump doesn't work, and the pool drain appears to be clogged.
What did Roger commit?
a Fraud
b Negligent misrepresentation
c Roger did not commit a violation
d Unintentional misrepresentation - Accurate answers d Unintentional misrepresentation
5/50 ______ occurs when one licensee represents both the buyer and seller in the same transaction
without proper disclosure and consent.
a A breach of contract
, b A conflict of interest Wrong
c Disclosed dual agency
d Undisclosed dual agency - Accurate answers d Undisclosed dual agency
6/10 Which of the following is a true statement about an MLS and sellers?
a An MLS is available via a fee-based subscription and is an option that most sellers prefer.
b An MLS is exclusive to members of the National Association of REALTORS®.
c For most sellers, marketing on an MLS is not cost effective.
d Sellers are required to market their properties on an MLS if they're working with a real estate licensee.
- Accurate answers a An MLS is available via a fee-based subscription and is an option that most
sellers prefer.
7/50 All North Carolina listing agreements must ______.
a Be signed by both the buyer and the seller
b Contain discriminatory language
c Have a six-month term
d Include the listing broker's license number - Accurate answers Include the listing broker's license
number
8/50 Which of these situations is an example of designated agency?
a Cindy's broker at Homeworks Realty appoints her as the buyer's agent in a transaction. Tim's broker at
Great Homes Real Estate appoints him as the seller's broker in the same transaction.
b Meredith's broker appoints her to represent both the buyer and the seller in a single transaction.
c Michele is the firm's managing broker. She's the designated dual agent in all dual agency transactions.
d The broker-in-charge at ABC Realty appoints Mark to represent the buyer and Todd to represent the
seller in the same transaction. - Accurate answers d The broker-in-charge at ABC Realty appoints
Mark to represent the buyer and Todd to represent the seller in the same transaction.
9/50 Negligent misrepresentation occurs when which of the following takes place?
a One party makes a claim and provides supporting evidence.
b One party makes a statement without reason or evidence to believe the statement is true.
c One party states something that is hearsay.
d One party states something that is known to be false - Accurate answers b One party makes a
statement without reason or evidence to
Negligent misrepresentation occurs when someone makes a statement without regard to the true facts.
10/50 Return on investment is another name for what?
a Capitalization rate
b Capital recapture
c Dividends
d The profit made from an investment - Accurate answers d The profit made from an investment
Return on investment is the profit made from an investment, and is often referred to as ROI. It's usually
expressed as an interest rate or discount rate.Wrong a Capitalization rate
The capitalization rate is the rate of return on a real estate investment property based on the income
that the property is expected to generate.
12/50 When you talk with your seller client Margo about the required seller disclosure form, she's
hesitant to say anything about the "quirks," as she calls them, with the plumbing systems. She wants to
