NC REAL ESTATE CHAPTER 8 PRACTICE EXAM
QUESTIONS WITH 100% ACCURATE ANSWERS
A valid listing agreement may be terminated for any of the following reasons, EXCEPT:
a.) sale of the property
b.) expiration of the individual listing agent's license
c.) agreement of the parties
d.) destruction of the premises - Accurate answers b.) Rationale: The expiration of the individual
agent's license does not terminate the listing because the licensee is not a party to the agreement. The
listing agreement is between the client and the firm.
According to North Carolina Real Estate Commission Rules, all of the following are required to be part of
a listing agreement, EXCEPT:
a.) signature of all parties
b.) the licensee's license number
c.) a definite termination date
d.) an automatic renewal clause - Accurate answers d.) Rationale: Listing agreements and buyer
broker agreements may not provide for an automatic extension of the agreement. However, the client
and the firm can agree to extend the listing period by mutual agreement and a properly executed
addendum.
By entering into an exclusive agency listing agreement with a seller, a real estate brokerage firm:
a.) is not entitled to receive a commission if another agency finds a buyer for the property
b.) has become the seller's designated agent
c.) has become the exclusive agent of the seller, but is not entitled to receive a commission if the seller
finds a buyer for the property
d.) has agreed to renegotiate the commission with the seller should another agency offer a lower
commission rate - Accurate answers c.) Rationale: An exclusive agency agreement differs from an
exclusive right to sell agreement because under an exclusive agency agreement the firm is not paid if the
seller finds a buyer on their own.
[b] Rationale: Designated agency is not automatic. It is an option that the firm may or may not offer to
clients.
, If a seller needs to net $50,000 after the sale of a property, what is the minimum acceptable sales price
if the selling expenses include a 7% commission and $1,200 in additional expenses?
a.) $53,763.44
b.) $54,784.00
c.) $55,053.76
d.) $55,633.25 - Accurate answers c.) Rationale: If the seller will net 93% of the total sales price
(100%-7%), then $50,000 + $1,200 = $51,200÷.93 = $55,053.76
A property owner lists a property for sale with a broker. The owner told the broker during the listing
negotiations that he wanted $138,000 for the property, and anything above that amount the broker
could keep as commission. The listing with this type of provision is known as:
a.) gross listing
b.) net listing
c.) open listing
d.) nonexclusive listing - Accurate answers b.) Rationale: A net listing provides for the brokerage
commission to be an excess amount over a predetermined net amount to be received by the seller. Net
listings are legal, but they are discouraged by the real estate commission due to their potential for taking
advantage of a client.
The fact that the NC listing agreement and buyer agency agreement must be in writing is required by:
a.) Statute of Frauds
b.) Commission Rule
c.) Conner Act
d.) Contract law - Accurate answers b.) Rationale: Employment agreements are not a right or
interest in real estate subject to the statute of frauds, but need to be in writing due to commission rules.
The listing agreement must be in writing at the time of the listing and the buyer brokerage agreement
must be in writing prior to the submission of the buyer's offer.
A licensee has just discovered a major roofing leak in one of his current listings even though the seller
has indicated "no representation" on the Residential Property Disclosure Statement. The listing agent
does not inform the selling agent of the defect and since the defect, is hidden, the selling agent does not
discover or disclose the problem to the buyer. According to the North Carolina Real Estate Commission,
who is held responsible for this nondisclosure?
a.) the listing agent
b.) the listing broker and the selling broker
c.) the seller and the listing agent
d.) the seller - Accurate answers a.) Rationale: There is no obligation of a seller to disclose the
defect, though the seller has a mandatory duty to complete the Disclosure Statement. Regardless of
how the seller completes the form, the licensee has a duty to disclose all material facts so the liability
rests with the listing agent. The buyer's agent has the same disclosure obligation, however, in this
QUESTIONS WITH 100% ACCURATE ANSWERS
A valid listing agreement may be terminated for any of the following reasons, EXCEPT:
a.) sale of the property
b.) expiration of the individual listing agent's license
c.) agreement of the parties
d.) destruction of the premises - Accurate answers b.) Rationale: The expiration of the individual
agent's license does not terminate the listing because the licensee is not a party to the agreement. The
listing agreement is between the client and the firm.
According to North Carolina Real Estate Commission Rules, all of the following are required to be part of
a listing agreement, EXCEPT:
a.) signature of all parties
b.) the licensee's license number
c.) a definite termination date
d.) an automatic renewal clause - Accurate answers d.) Rationale: Listing agreements and buyer
broker agreements may not provide for an automatic extension of the agreement. However, the client
and the firm can agree to extend the listing period by mutual agreement and a properly executed
addendum.
By entering into an exclusive agency listing agreement with a seller, a real estate brokerage firm:
a.) is not entitled to receive a commission if another agency finds a buyer for the property
b.) has become the seller's designated agent
c.) has become the exclusive agent of the seller, but is not entitled to receive a commission if the seller
finds a buyer for the property
d.) has agreed to renegotiate the commission with the seller should another agency offer a lower
commission rate - Accurate answers c.) Rationale: An exclusive agency agreement differs from an
exclusive right to sell agreement because under an exclusive agency agreement the firm is not paid if the
seller finds a buyer on their own.
[b] Rationale: Designated agency is not automatic. It is an option that the firm may or may not offer to
clients.
, If a seller needs to net $50,000 after the sale of a property, what is the minimum acceptable sales price
if the selling expenses include a 7% commission and $1,200 in additional expenses?
a.) $53,763.44
b.) $54,784.00
c.) $55,053.76
d.) $55,633.25 - Accurate answers c.) Rationale: If the seller will net 93% of the total sales price
(100%-7%), then $50,000 + $1,200 = $51,200÷.93 = $55,053.76
A property owner lists a property for sale with a broker. The owner told the broker during the listing
negotiations that he wanted $138,000 for the property, and anything above that amount the broker
could keep as commission. The listing with this type of provision is known as:
a.) gross listing
b.) net listing
c.) open listing
d.) nonexclusive listing - Accurate answers b.) Rationale: A net listing provides for the brokerage
commission to be an excess amount over a predetermined net amount to be received by the seller. Net
listings are legal, but they are discouraged by the real estate commission due to their potential for taking
advantage of a client.
The fact that the NC listing agreement and buyer agency agreement must be in writing is required by:
a.) Statute of Frauds
b.) Commission Rule
c.) Conner Act
d.) Contract law - Accurate answers b.) Rationale: Employment agreements are not a right or
interest in real estate subject to the statute of frauds, but need to be in writing due to commission rules.
The listing agreement must be in writing at the time of the listing and the buyer brokerage agreement
must be in writing prior to the submission of the buyer's offer.
A licensee has just discovered a major roofing leak in one of his current listings even though the seller
has indicated "no representation" on the Residential Property Disclosure Statement. The listing agent
does not inform the selling agent of the defect and since the defect, is hidden, the selling agent does not
discover or disclose the problem to the buyer. According to the North Carolina Real Estate Commission,
who is held responsible for this nondisclosure?
a.) the listing agent
b.) the listing broker and the selling broker
c.) the seller and the listing agent
d.) the seller - Accurate answers a.) Rationale: There is no obligation of a seller to disclose the
defect, though the seller has a mandatory duty to complete the Disclosure Statement. Regardless of
how the seller completes the form, the licensee has a duty to disclose all material facts so the liability
rests with the listing agent. The buyer's agent has the same disclosure obligation, however, in this
