301- NC Post Licensing: Questions And Precise Answers
First Substantial Contact or Not?
Blanche is doing a listing presentation for a family when the husband, Dale,
says, "Can you help clients who need to sell quickly for financial reasons?"
Right Ans - Not first substantial contact
Seller Sub-Agency: Limitations and Considerations Alternative: Right Ans -
The buyer may choose to enter into a buyer agency agreement for
representation.
Can an inactive agent be paid a referral commission if they were active at the
time they made the referral? Right Ans - Yes. If and only if they were active
at time of referral
Must Dual Agency be in writing? Right Ans - Before an offer is made, Yes.
Dual agency must be in writing and signed by both parties
At a listing appointment, the agent should be gathering all information for
listing and what? Right Ans - Advertising
May a BIC and their Provisional Broker enter into dual agency together?
Right Ans - No. Because the BIC oversees the PBs transactions, this would be a
conflict of interest
When must all agency be "Written" Right Ans - Prior to first offer
Are all in-house transactions Dual Agency? Right Ans - No. The exceptions
would be Seller Sub Agency or Unrepresented Buyers
Can The Real Estate Commission fine brokers? Right Ans - No. They can
only reprimand, suspend, and revoke licenses
Who can sue agents civilly for monetary compensation? Right Ans -
Principles of a transaction
If Dual Agency is not disclosed is a commission due? Right Ans - No.
Therefore it is imperative to disclose dual agency before any offers are written
,As a dual agent, the agent's duties are reduced to what? Right Ans -
Contractual Obligations
What must all agency agreements have? Right Ans - A beginning and
ending date
Oral to Oral & Written to Written describe what? Right Ans - The
permissions needed to show a property as a "Dual Agent"
What should every agent bring to a listing appointment? Right Ans - Deed,
Plot Map, Tax Info, RPD, MOG, Listing Agreement (Several Other items)
Who gets paid in an Exclusive Right to Sell listing agreement? Right Ans -
The listing agent, regardless of who brings a buyer, and likely the buyer agent
Who gets paid in an exclusive listing agreement? Right Ans - Whomever
brings a buyer
Who can sell a property in an Open listing? Right Ans - Any actively
licensed agent
In a net listing money above the asking price is paid to whom? Right Ans -
Listing Agent
Who is the actual agent to the principle in a transaction? Right Ans - The
Firm (Individual agents are sub agents to seller)
No M.O.G. is needed for what 3 listings? Right Ans - Lease to purchase, 1st
Dwelling, and Foreclosure
When should WWREA be explained / signed? Right Ans - At first
substantial contact
If you miss the 6/10 Deadline for CE what must you do to re-activate your
license? Right Ans - Complete latest General Update (4 Hours), and 3 CE
Classes (4 hours each) Total of 16 hours
,Under NC License Law who can be held responsible for reporting Material
Facts? Right Ans - Only Agents... (License Law)
Under Civil /Criminal law who can be held responsible for reporting Material
Facts? Right Ans - Principles
Name the 4 types of Material Facts Right Ans - Facts about the property,
facts that relate to the property, facts relating to the ability to close the
transaction, and facts of special importance
Who must Material Facts be disclosed to? Right Ans - All parties, including
3rd Parties regardless of who you represent
Who can The Real Estate Commission fine? Right Ans - Time Share
Developers
Willfull Omission means Right Ans - You knew but you didn't disclose
Willfull Misrepresentation means Right Ans - You lied, by speaking wrong
information
Negligent Omission means Right Ans - You should have known, but did not
Negligent Misrepresentation means Right Ans - You should have known,
but spoke wrong information
May a principle be held responsible for mis-information as it relates to a
material fact? Right Ans - Yes. Typically civilly or criminally
The provision in a listing agreement that may obligate seller to pay a
commission after the agreement has expired is called? Right Ans - Override
Clause or Extender Clause
A listing agreement is said to be what, if the principle dies during the
agreement? Right Ans - Automatically Terminated
If a Seller refuses to sign an offer for less than list price, is a commission due?
Right Ans - No. It is not due, until Seller agrees upon the price and signs
, What are considered Trigger items in Regulation Z? Right Ans - Any
numbers or numerical characters
Is a CMA mandatory when listing a property? Right Ans - Yes. It is an
agent's duty to perform a CMA for Seller
What would a "Latent" material fact be? Right Ans - A very well hidden
fact... (Behind Walls)
Is a broker with multiple buyers considered a dual agent? Right Ans - No, A
dual agent represents both principles in a single transaction
Does the WWREA brochure have an option for Seller Sub Agency? Right
Ans - Yes. it is a check box on the last page
May an unlicensed employee designate an agent for dual agency? Right Ans
- Yes. If there is a company policy stating this
May a Principle refuse to sign the WWREA? Right Ans - Yes. Agent just
needs to write "Refused to sign"
When measuring the square footage of stairs always remember to? Right
Ans - Include the square footage on the first floor, and include the square
footage on the 2nd floor as well
A CMA is not a representation of Value but is a? Right Ans - Representation
of a range of suggested selling price
May an agent do a CMA/BPO for a bank? Right Ans - No. Agents cannot
perform either for the purposes of a loan or mortgage. This must be done by
appraisers
Typically if a Seller is not that motivated to sell the price would tend to be...
Right Ans - At the higher range of the CMA
In Qualifying Ratios what is included in the Front End? Right Ans -
Principle payment, Interest, Taxes Insurance, PMI & HOA
First Substantial Contact or Not?
Blanche is doing a listing presentation for a family when the husband, Dale,
says, "Can you help clients who need to sell quickly for financial reasons?"
Right Ans - Not first substantial contact
Seller Sub-Agency: Limitations and Considerations Alternative: Right Ans -
The buyer may choose to enter into a buyer agency agreement for
representation.
Can an inactive agent be paid a referral commission if they were active at the
time they made the referral? Right Ans - Yes. If and only if they were active
at time of referral
Must Dual Agency be in writing? Right Ans - Before an offer is made, Yes.
Dual agency must be in writing and signed by both parties
At a listing appointment, the agent should be gathering all information for
listing and what? Right Ans - Advertising
May a BIC and their Provisional Broker enter into dual agency together?
Right Ans - No. Because the BIC oversees the PBs transactions, this would be a
conflict of interest
When must all agency be "Written" Right Ans - Prior to first offer
Are all in-house transactions Dual Agency? Right Ans - No. The exceptions
would be Seller Sub Agency or Unrepresented Buyers
Can The Real Estate Commission fine brokers? Right Ans - No. They can
only reprimand, suspend, and revoke licenses
Who can sue agents civilly for monetary compensation? Right Ans -
Principles of a transaction
If Dual Agency is not disclosed is a commission due? Right Ans - No.
Therefore it is imperative to disclose dual agency before any offers are written
,As a dual agent, the agent's duties are reduced to what? Right Ans -
Contractual Obligations
What must all agency agreements have? Right Ans - A beginning and
ending date
Oral to Oral & Written to Written describe what? Right Ans - The
permissions needed to show a property as a "Dual Agent"
What should every agent bring to a listing appointment? Right Ans - Deed,
Plot Map, Tax Info, RPD, MOG, Listing Agreement (Several Other items)
Who gets paid in an Exclusive Right to Sell listing agreement? Right Ans -
The listing agent, regardless of who brings a buyer, and likely the buyer agent
Who gets paid in an exclusive listing agreement? Right Ans - Whomever
brings a buyer
Who can sell a property in an Open listing? Right Ans - Any actively
licensed agent
In a net listing money above the asking price is paid to whom? Right Ans -
Listing Agent
Who is the actual agent to the principle in a transaction? Right Ans - The
Firm (Individual agents are sub agents to seller)
No M.O.G. is needed for what 3 listings? Right Ans - Lease to purchase, 1st
Dwelling, and Foreclosure
When should WWREA be explained / signed? Right Ans - At first
substantial contact
If you miss the 6/10 Deadline for CE what must you do to re-activate your
license? Right Ans - Complete latest General Update (4 Hours), and 3 CE
Classes (4 hours each) Total of 16 hours
,Under NC License Law who can be held responsible for reporting Material
Facts? Right Ans - Only Agents... (License Law)
Under Civil /Criminal law who can be held responsible for reporting Material
Facts? Right Ans - Principles
Name the 4 types of Material Facts Right Ans - Facts about the property,
facts that relate to the property, facts relating to the ability to close the
transaction, and facts of special importance
Who must Material Facts be disclosed to? Right Ans - All parties, including
3rd Parties regardless of who you represent
Who can The Real Estate Commission fine? Right Ans - Time Share
Developers
Willfull Omission means Right Ans - You knew but you didn't disclose
Willfull Misrepresentation means Right Ans - You lied, by speaking wrong
information
Negligent Omission means Right Ans - You should have known, but did not
Negligent Misrepresentation means Right Ans - You should have known,
but spoke wrong information
May a principle be held responsible for mis-information as it relates to a
material fact? Right Ans - Yes. Typically civilly or criminally
The provision in a listing agreement that may obligate seller to pay a
commission after the agreement has expired is called? Right Ans - Override
Clause or Extender Clause
A listing agreement is said to be what, if the principle dies during the
agreement? Right Ans - Automatically Terminated
If a Seller refuses to sign an offer for less than list price, is a commission due?
Right Ans - No. It is not due, until Seller agrees upon the price and signs
, What are considered Trigger items in Regulation Z? Right Ans - Any
numbers or numerical characters
Is a CMA mandatory when listing a property? Right Ans - Yes. It is an
agent's duty to perform a CMA for Seller
What would a "Latent" material fact be? Right Ans - A very well hidden
fact... (Behind Walls)
Is a broker with multiple buyers considered a dual agent? Right Ans - No, A
dual agent represents both principles in a single transaction
Does the WWREA brochure have an option for Seller Sub Agency? Right
Ans - Yes. it is a check box on the last page
May an unlicensed employee designate an agent for dual agency? Right Ans
- Yes. If there is a company policy stating this
May a Principle refuse to sign the WWREA? Right Ans - Yes. Agent just
needs to write "Refused to sign"
When measuring the square footage of stairs always remember to? Right
Ans - Include the square footage on the first floor, and include the square
footage on the 2nd floor as well
A CMA is not a representation of Value but is a? Right Ans - Representation
of a range of suggested selling price
May an agent do a CMA/BPO for a bank? Right Ans - No. Agents cannot
perform either for the purposes of a loan or mortgage. This must be done by
appraisers
Typically if a Seller is not that motivated to sell the price would tend to be...
Right Ans - At the higher range of the CMA
In Qualifying Ratios what is included in the Front End? Right Ans -
Principle payment, Interest, Taxes Insurance, PMI & HOA
