Post License 301- study guide.

Post License 301- study guide
What are the basic duties that an agent owes a principal under Agency Law? -
CORRECT ANSWER-OLD CAR or LOADS - loyalty/confidentiality, obedience,
accounting, disclosure, skill, care and diligence.

What is the definition of a fiduciary relationship? - CORRECT ANSWER-A
person who acts for another in a relationship of trust and who is obligated to act
in the other's best interests, placing the other's interests before any self-interest.

Does violating Agency Law also violate Real Estate License Law? - CORRECT
ANSWER-Yes

What are some possible consequences of violating Agency Law? - CORRECT
ANSWER-revocation or suspension of real estate license, civil liability, loss of
commission

What are the four categories of material facts? Give an example of each
category. - CORRECT ANSWER-Facts about the property itself (HVAC system
does not work) o Facts that relate directly to the property (state approved plans
for a four-lane bypass near the property) o Facts directly affecting the principal's
ability to compete the transaction (seller is unable to convey clear title) o Facts
that are known to be of special importance to a party (current zoning will not
permit a buyer's intended use)

Material fact? Yes or No:Death or murder of a previous tenant on the property? -
CORRECT ANSWER-No

Material fact? Yes or No:A convicted sex offender lives in a neighboring
property? - CORRECT ANSWER-No

Material fact? Yes or No:A gravesite is located on a property? - CORRECT
ANSWER-Yes

Material fact? Yes or No:Property is believed to be haunted? - CORRECT
ANSWER-No

,Material fact? Yes or No:Property is located in an airport approach flight path? -
CORRECT ANSWER-Yes

Material fact? Yes or No: Seller behind on payments - CORRECT ANSWER-No

If a material fact is detrimental to the seller, can the listing broker withhold it from
the buyer? - CORRECT ANSWER-No

Can a broker refuse to obey a seller client's instruction to withhold a material fact
about the property? - CORRECT ANSWER-yes

Can a broker advise a buyer on how to take title to the property? - CORRECT
ANSWER-no

Can a listing broker disclose to a buyer how much the seller is willing to accept
for the property? - CORRECT ANSWER-no

Can a buyer agent withhold information from the seller about the buyer's inability
to obtain the funds necessary to purchase the property? - CORRECT
ANSWER-no

If the broker is acting as a buyer agent, does that relieve the broker from
disclosing material facts to the seller? - CORRECT ANSWER-no

If a material fact is a matter of public record, is the listing broker still required to
tell the buyer or seller of that fact? - CORRECT ANSWER-yes

Does using a limited-service agreement remove the requirement of the broker to
discover and disclose material facts? - CORRECT ANSWER-no

What does Caveat Emptor mean? - CORRECT ANSWER-let the buyer beware.
The SELLER has no affirmative duty to disclose known facts about the property
to prospective buyers.

Does North Carolina honor the Doctrine of Caveat Emptor? - CORRECT
ANSWER-Yes

, In North Carolina, do sellers have to disclose material facts to buyers? -
CORRECT ANSWER-No

What do sellers have to disclose on the RPOADS? - CORRECT
ANSWER-Nothing

In North Carolina, is it possible that buyers may not be able to determine the
property's condition from the mandatory property disclosure form? - CORRECT
ANSWER-Yes

What damages might a seller be liable for if they don't disclose all property
condition information on the disclosure forms? - CORRECT ANSWER-None as
long as they don't lie.

If a broker markets a property "as is", does that relieve the broker from
discovering and disclosing material facts about the property? - CORRECT
ANSWER-No

At what point is a broker required to present the Working with Real Estate Agents
Disclosure to a prospective client or customer? - CORRECT ANSWER-At first
substantial contact (not initial contact)

What type of information determines when that point has been reached?
Confidential information what would harm the individual in a negotiation -
CORRECT ANSWER-financial information (ability to purchase), family
information, job information, motivation for buying or selling, requirements to buy
or sell, specific needs, etc.

Is review of the WWREA Disclosure required in all real estate transactions? -
CORRECT ANSWER-No

In what types of transactions is the WWREA Disclosure required? - CORRECT
ANSWER-All sales transactions (residential and commercial). Not required in
lease transactions.