301 NC Post-Licensing: Questions And Correct Answers
An agent's duties to third parties include all the following EXCEPT
A) fairness.
B) obedience.
C) disclosure of material fact.
D) honesty. Right Ans - B) obedience.
Derrin hires Austin with Best Homes Realty to list his home for sale. As Austin
is completing the listing agreement, Derrin mentions that the hot water heater
has not worked for a couple of weeks and is not planning on repairing it since
he is selling the home. Derrin tells Austin that he cannot share that
information with anyone as it might affect 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 fiduciary duties, and Derrin can sue him for disclosing
confidential information.
B) Austin can share the information with people at Best Homes Realty but
cannot share it with any firm 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 fiduciary
duties to their clien Right Ans - C) Austin must disclose that the hot water
heater is not working because it is a material fact.
Armin, a broker affiliated with Best Homes Realty, listed a property for sale
and conducted an open house. Courtney visited the open house and decided to
make an offer. The seller had completed the Residential Property and Owners'
Association Disclosure Statement (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 Emptor 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 disclosed all material facts
and she does not need to get her own home inspection. Right Ans - A)
Courtney needs to be advised to still conduct a full home inspection.
A buyer and a seller are negotiating the terms of a possible contract. The seller
counteroffers to the buyer, and the buyer wants to think about it overnight.
The next day the buyer calls the selling agent and says they would like to
accept the seller's counteroffer. Before verifying that the buyer had actually
signed the counteroffer, the selling agent calls the listing agent to say the
buyer had accepted the seller's counteroffer. The seller then goes on to
purchase another house based on the buyer's "acceptance" of their
counteroffer. When the selling agent goes to pick up the signed paperwork
from the buyer, the buyer states they never signed the counteroffer 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 misrepresentation.
B) Both the buyer and the selling agent are responsible for the
misrepresentation.
C) Neither the buyer Right Ans - D) The selling agent is responsible for the
misrepresentation.
The real estate broker's fiduciary responsibility to keep the principal
informed of all facts, including property condition and issues that affect 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. Right Ans - B) disclosure.
The duties owed from the "agent" to the "principal" are BEST described by
which of the following?
A) Obedience, loyalty, accounting, and reasonable care
B) Fairness and honesty
C) Fairness, honest, obedience, loyalty, accounting, reasonable skill, and care
D) Obedience, loyalty, disclosure, confidentiality, accounting, reasonable skill,
care, and diligence Right Ans - D) Obedience, loyalty, disclosure,
confidentiality, accounting, reasonable skill, care, and diligence
Which of the following BEST describes subagent?
,A) Literally the agent of an agent, a person designated or employed by an
agent to perform all or part of the agent's assigned tasks or services on behalf
of the agent's principal
B) The person who authorizes another to act on the principal's behalf within
specified parameters and to whom the agent owes certain legal duties
C) The person acting for and on behalf of the principal within the bounds of
the authority granted and who owes fiduciary duties to the principal
D) The relationship that exists when one person is authorized to act for and
on behalf of another Right Ans - A) Literally the agent of an agent, a person
designated or employed by an agent to perform all or part of the agent's
assigned tasks or services on behalf of the agent's principal
Which of the following statements is TRUE regarding agency agreements?
A) Listing agreements, property management agreements, buyer agency
agreements, and tenant representation agreements can all be express oral
agreements for a period of time.
B) Listing agreements and property management agreements must be express
written agreements from the beginning of the relationship and buyer agency
agreements and tenant representation agreements can be in express oral
agreements for a period of time.
C) Listing agreements and buyer agency agreements must be express written
agreements from the beginning 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 period of time and buyer agency agreements and tenant
representation agreements must be in ex Right Ans - B) Listing agreements
and property management agreements must be express written agreements
from the beginning of the relationship and buyer agency agreements and
tenant representation agreements can be in express oral agreements for a
period of time.
Which of the following statements BEST describes North Carolina Unfair
Deceptive Practices Act?
A) This law prohibits disclosure regarding facts about the property itself or
the surrounding area.
B) This law prohibits unfair or deceptive acts or practices in commerce and
applies to the sale or rental of real estate and to real estate brokers.
, C) This law holds that—except in cases involving fraud by the seller or the
seller's agent—the seller has no affirmative obligation to disclose information
about the property being sold to the purchaser and places the burden on the
buyer to investigate the property before contracting to purchase the property.
D) This law prohibits making generalized expression of a broker's opinion
about a property. Right Ans - B) This law prohibits unfair or deceptive acts
or practices in commerce and applies to the sale or rental of real estate and to
real estate brokers.
George knows that the property is about to be rezoned for commercial use,
which will greatly increase the value of the property. George does not share
this information with the seller and offers to buy the property for himself as
an investment. George closes on the property with the seller and then after
the rezoning has been finalized, George sells the property at a substantial
profit. This is an example of
A) self-dealing.
B) making false promises.
C) undisclosed dual agency.
D) improper dealing. Right Ans - A) self-dealing.
Lanzo is in the process of listing a house for sale and tells the seller that he
will stage the house, steam clean the carpets, and hire a professional cleaning
crew to clean prior to showing the house. Once the seller signed the listing
agreement, Lanzo failed to provide these services. Lanzo may be guilty of
which of the following?
A) Making false promises
B) Undisclosed dual agency
C) Self-dealing
D) Improper brokerage commission Right Ans - A) Making false promises
Who is required to disclose material facts?
A) Sellers and listing agents
B) Sellers and buyers
C) Listing agents and selling agents
D) Sellers, buyers, listing agents, and selling agents Right Ans - C) Listing
agents and selling agents
Francis listed a property for sale and did not investigate the property for
material facts because he relied on the seller's statement that there was
An agent's duties to third parties include all the following EXCEPT
A) fairness.
B) obedience.
C) disclosure of material fact.
D) honesty. Right Ans - B) obedience.
Derrin hires Austin with Best Homes Realty to list his home for sale. As Austin
is completing the listing agreement, Derrin mentions that the hot water heater
has not worked for a couple of weeks and is not planning on repairing it since
he is selling the home. Derrin tells Austin that he cannot share that
information with anyone as it might affect 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 fiduciary duties, and Derrin can sue him for disclosing
confidential information.
B) Austin can share the information with people at Best Homes Realty but
cannot share it with any firm 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 fiduciary
duties to their clien Right Ans - C) Austin must disclose that the hot water
heater is not working because it is a material fact.
Armin, a broker affiliated with Best Homes Realty, listed a property for sale
and conducted an open house. Courtney visited the open house and decided to
make an offer. The seller had completed the Residential Property and Owners'
Association Disclosure Statement (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 Emptor 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 disclosed all material facts
and she does not need to get her own home inspection. Right Ans - A)
Courtney needs to be advised to still conduct a full home inspection.
A buyer and a seller are negotiating the terms of a possible contract. The seller
counteroffers to the buyer, and the buyer wants to think about it overnight.
The next day the buyer calls the selling agent and says they would like to
accept the seller's counteroffer. Before verifying that the buyer had actually
signed the counteroffer, the selling agent calls the listing agent to say the
buyer had accepted the seller's counteroffer. The seller then goes on to
purchase another house based on the buyer's "acceptance" of their
counteroffer. When the selling agent goes to pick up the signed paperwork
from the buyer, the buyer states they never signed the counteroffer 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 misrepresentation.
B) Both the buyer and the selling agent are responsible for the
misrepresentation.
C) Neither the buyer Right Ans - D) The selling agent is responsible for the
misrepresentation.
The real estate broker's fiduciary responsibility to keep the principal
informed of all facts, including property condition and issues that affect 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. Right Ans - B) disclosure.
The duties owed from the "agent" to the "principal" are BEST described by
which of the following?
A) Obedience, loyalty, accounting, and reasonable care
B) Fairness and honesty
C) Fairness, honest, obedience, loyalty, accounting, reasonable skill, and care
D) Obedience, loyalty, disclosure, confidentiality, accounting, reasonable skill,
care, and diligence Right Ans - D) Obedience, loyalty, disclosure,
confidentiality, accounting, reasonable skill, care, and diligence
Which of the following BEST describes subagent?
,A) Literally the agent of an agent, a person designated or employed by an
agent to perform all or part of the agent's assigned tasks or services on behalf
of the agent's principal
B) The person who authorizes another to act on the principal's behalf within
specified parameters and to whom the agent owes certain legal duties
C) The person acting for and on behalf of the principal within the bounds of
the authority granted and who owes fiduciary duties to the principal
D) The relationship that exists when one person is authorized to act for and
on behalf of another Right Ans - A) Literally the agent of an agent, a person
designated or employed by an agent to perform all or part of the agent's
assigned tasks or services on behalf of the agent's principal
Which of the following statements is TRUE regarding agency agreements?
A) Listing agreements, property management agreements, buyer agency
agreements, and tenant representation agreements can all be express oral
agreements for a period of time.
B) Listing agreements and property management agreements must be express
written agreements from the beginning of the relationship and buyer agency
agreements and tenant representation agreements can be in express oral
agreements for a period of time.
C) Listing agreements and buyer agency agreements must be express written
agreements from the beginning 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 period of time and buyer agency agreements and tenant
representation agreements must be in ex Right Ans - B) Listing agreements
and property management agreements must be express written agreements
from the beginning of the relationship and buyer agency agreements and
tenant representation agreements can be in express oral agreements for a
period of time.
Which of the following statements BEST describes North Carolina Unfair
Deceptive Practices Act?
A) This law prohibits disclosure regarding facts about the property itself or
the surrounding area.
B) This law prohibits unfair or deceptive acts or practices in commerce and
applies to the sale or rental of real estate and to real estate brokers.
, C) This law holds that—except in cases involving fraud by the seller or the
seller's agent—the seller has no affirmative obligation to disclose information
about the property being sold to the purchaser and places the burden on the
buyer to investigate the property before contracting to purchase the property.
D) This law prohibits making generalized expression of a broker's opinion
about a property. Right Ans - B) This law prohibits unfair or deceptive acts
or practices in commerce and applies to the sale or rental of real estate and to
real estate brokers.
George knows that the property is about to be rezoned for commercial use,
which will greatly increase the value of the property. George does not share
this information with the seller and offers to buy the property for himself as
an investment. George closes on the property with the seller and then after
the rezoning has been finalized, George sells the property at a substantial
profit. This is an example of
A) self-dealing.
B) making false promises.
C) undisclosed dual agency.
D) improper dealing. Right Ans - A) self-dealing.
Lanzo is in the process of listing a house for sale and tells the seller that he
will stage the house, steam clean the carpets, and hire a professional cleaning
crew to clean prior to showing the house. Once the seller signed the listing
agreement, Lanzo failed to provide these services. Lanzo may be guilty of
which of the following?
A) Making false promises
B) Undisclosed dual agency
C) Self-dealing
D) Improper brokerage commission Right Ans - A) Making false promises
Who is required to disclose material facts?
A) Sellers and listing agents
B) Sellers and buyers
C) Listing agents and selling agents
D) Sellers, buyers, listing agents, and selling agents Right Ans - C) Listing
agents and selling agents
Francis listed a property for sale and did not investigate the property for
material facts because he relied on the seller's statement that there was
