NC REAL ESTATE EXAM CHAPTER 7 -
BROKERAGE RELATIONSHIPS: LAW AND
PRACTICE QUESTIONS WITH 100% ACCURATE
ANSWERS
state real estate license laws purpose - Accurate answers To protect the public by ensuring a
consistent level of competence, ethics, and professionalism.
Who Is the the North Carolina Real Estate Commission? - Accurate answers an independent
governmental agency, that issues licenses and oversees all your activities as a licensee.
Who is the NC REALTORS® - Accurate answers a non-profit trade association that real estate
licensees may choose to join but are not required to join in order to maintain a real estate license.
REALTOR® members must agree to abide by the National Association of REALTORS® Code of Ethics, and
only members have the right to use the designation REALTOR®.
What was traditional agency? - Accurate answers a real estate agent represented only the seller,
and buyers were left to fend for themselves.
In the past, in a "traditional" agency relationship, who was the principal? - Accurate answers The
seller
What is agency? - Accurate answers relationship of trust created when one party gives another the
right to represent him in dealings with third parties
Who is an agent? - Accurate answers The individual or brokerage firm authorized to represent the
client
Who is the client/principal - Accurate answers The party granting the right of representation
through an agency relationship. Buyer or seller
What is a subagent? - Accurate answers anyone given authority by an agent so that the subagent
can assist in carrying out the principal's orders. For example, a licensed broker is a subagent of his or her
employing broker who has an agency agreement with a principal.
all associated licensees work for the firm, which is the: - Accurate answers agent of the principal
Who is a customer in a transaction? - Accurate answers Any third party. Lenders, loan officers,
buyer if representing seller, etc
You work "for" a client and you work "with" a customer.
, Explain non-agency, transactional brokerage, or facilitational brokerage,... - Accurate answers
simply assisting in the transaction in a neutral capacity without providing the fiduciary duties an agent
owes to a principal. licensee cannot advocate on the part of either consumer. Non-agency obligates a
licensee to nothing beyond the duties of honesty and disclosure of material facts required for customers
in real estate transactions.
North Carolina does not permit a licensee to perform the role of facilitator or transactional broker.
What is a fiduciary relationship? - Accurate answers Relationship of utmost confidence, legality,
and trust
Common law defines these basic fiduciary duties that an agent owes a principal in an agency
relationship: - Accurate answers Obedience
Loyalty
Disclosure of Information
Confidently
Accounting
Reasonable skill, care, diligence.
What are the three classifications of agency relationships? - Accurate answers Universal agent
General agent
Special agent
What is an universal agent? - Accurate answers authorized to do anything and everything that can
be lawfully delegated to a representative. For example, a universal agent may be created through the
granting of a power of attorney.
What is a general agent? - Accurate answers A general agent is authorized to represent the
principal in a broad range of matters as specified, usually as part of a long-term relationship. A prime
example of a general agent is a property manager
What is a special/limited agent? - Accurate answers has limited authority to perform a specific task
or conduct a specific transaction. This is generally a short-term relationship. For example, when a real
estate broker is contracted by a homeowner to sell his or her property, the broker is considered to be a
special agent.
when you affiliate with a real estate broker, you will be a: - Accurate answers general agent of your
employing broker, who is the principal in this particular relationship.
An agency relationship is most typically established by a - Accurate answers Written
agreement/legal contract
Different type of agency agreements between brokerage firm and principle - Accurate answers
Listing contract
Buyer Agency Contract
Dual Agency
Tenant Representation
Property Management
BROKERAGE RELATIONSHIPS: LAW AND
PRACTICE QUESTIONS WITH 100% ACCURATE
ANSWERS
state real estate license laws purpose - Accurate answers To protect the public by ensuring a
consistent level of competence, ethics, and professionalism.
Who Is the the North Carolina Real Estate Commission? - Accurate answers an independent
governmental agency, that issues licenses and oversees all your activities as a licensee.
Who is the NC REALTORS® - Accurate answers a non-profit trade association that real estate
licensees may choose to join but are not required to join in order to maintain a real estate license.
REALTOR® members must agree to abide by the National Association of REALTORS® Code of Ethics, and
only members have the right to use the designation REALTOR®.
What was traditional agency? - Accurate answers a real estate agent represented only the seller,
and buyers were left to fend for themselves.
In the past, in a "traditional" agency relationship, who was the principal? - Accurate answers The
seller
What is agency? - Accurate answers relationship of trust created when one party gives another the
right to represent him in dealings with third parties
Who is an agent? - Accurate answers The individual or brokerage firm authorized to represent the
client
Who is the client/principal - Accurate answers The party granting the right of representation
through an agency relationship. Buyer or seller
What is a subagent? - Accurate answers anyone given authority by an agent so that the subagent
can assist in carrying out the principal's orders. For example, a licensed broker is a subagent of his or her
employing broker who has an agency agreement with a principal.
all associated licensees work for the firm, which is the: - Accurate answers agent of the principal
Who is a customer in a transaction? - Accurate answers Any third party. Lenders, loan officers,
buyer if representing seller, etc
You work "for" a client and you work "with" a customer.
, Explain non-agency, transactional brokerage, or facilitational brokerage,... - Accurate answers
simply assisting in the transaction in a neutral capacity without providing the fiduciary duties an agent
owes to a principal. licensee cannot advocate on the part of either consumer. Non-agency obligates a
licensee to nothing beyond the duties of honesty and disclosure of material facts required for customers
in real estate transactions.
North Carolina does not permit a licensee to perform the role of facilitator or transactional broker.
What is a fiduciary relationship? - Accurate answers Relationship of utmost confidence, legality,
and trust
Common law defines these basic fiduciary duties that an agent owes a principal in an agency
relationship: - Accurate answers Obedience
Loyalty
Disclosure of Information
Confidently
Accounting
Reasonable skill, care, diligence.
What are the three classifications of agency relationships? - Accurate answers Universal agent
General agent
Special agent
What is an universal agent? - Accurate answers authorized to do anything and everything that can
be lawfully delegated to a representative. For example, a universal agent may be created through the
granting of a power of attorney.
What is a general agent? - Accurate answers A general agent is authorized to represent the
principal in a broad range of matters as specified, usually as part of a long-term relationship. A prime
example of a general agent is a property manager
What is a special/limited agent? - Accurate answers has limited authority to perform a specific task
or conduct a specific transaction. This is generally a short-term relationship. For example, when a real
estate broker is contracted by a homeowner to sell his or her property, the broker is considered to be a
special agent.
when you affiliate with a real estate broker, you will be a: - Accurate answers general agent of your
employing broker, who is the principal in this particular relationship.
An agency relationship is most typically established by a - Accurate answers Written
agreement/legal contract
Different type of agency agreements between brokerage firm and principle - Accurate answers
Listing contract
Buyer Agency Contract
Dual Agency
Tenant Representation
Property Management
