NC POST LICENSING 301 Practice Exam 1 88-100 (2025) Actual Questions with Verified Answers, 100% Guarantee Pass

NC POST LICENSING 301 Practice Exam 1 88-100 (2025) Actual Questions with Verified Answers, 100% Guarantee Pass 1/50 Under which of the following circumstances would the client and agent most likely mutually agree to terminate a listing? a A buyer approached the seller with a much higher offer than the current listing price. b The agent and client don't agree on the best way to price, maintain, and market the property. c The client has found a buyer and wants to avoid paying a commission. d The client's cousin just became licensed and needs her first listing. - Correct Answer b The agent and client don't agree on the best way to price, maintain, and market the property." "2/50 Tabitha listed her property for sale, but it's been on the market for several months with no offers. She decides to terminate her listing agreement and rent the property out instead of selling it. Assuming that her listing agent has fulfilled all of his responsibilities under the contract, can Tabitha terminate the contract before its expiration date? a Only if she and the listing agent mutually agree to terminate the agreement. b Only if she succeeds in converting it to a rental. c Yes because she's received no offers on the listing. d Yes, she is entitled to terminate at any time. - Correct Answer a Only if she and the listing agent mutually agree to terminate the agreement." "3/50 As a North Carolina property manager, which of the following is Luisa required to do? a Act as the landlord's representative in all matters, including legal counsel. b Advocate for the tenants' interests above all others. c Avoid performing any actions that would constitute a landlord's duties. d Perform the duties of a landlord, as laid out in statute and the lease. - Correct Answer Perform the duties of a landlord, as laid out in statute and the lease." "4/50 It's January, and the pool at Roger's listing has been prepped for winter for several weeks. The homeowner assures Roger that it's in good working order. Roger has no reason to disbelieve the homeowner, so he tells prospective buyers that the pool is fine. The property sells, spring comes, and the new owners call to complain that the pump doesn't work, and the pool drain appears to be clogged. What did Roger commit? a Fraud b Negligent misrepresentation c Roger did not commit a violation d Unintentional misrepresentation - Correct Answer d Unintentional misrepresentation" "5/50 ______ occurs when one licensee represents both the buyer and seller in the same transaction without proper disclosure and consent. a A breach of contract b A conflict of interest Wrong c Disclosed dual agency d Undisclosed dual agency - Correct Answer d Undisclosed dual agency" "6/10 Which of the following is a true statement about an MLS and sellers? a An MLS is available via a fee-based subscription and is an option that most sellers prefer. b An MLS is exclusive to members of the National Association of REALTORS®. c For most sellers, marketing on an MLS is not cost effective. d Sellers are required to market their properties on an MLS if they're working with a real estate licensee. - Correct Answer a An MLS is available via a fee-based subscription and is an option that most sellers prefer." "7/50 All North Carolina listing agreements must ______. a Be signed by both the buyer and the seller b Contain discriminatory language c Have a six-month term d Include the listing broker's license number - Correct Answer Include the listing broker's license number" "8/50 Which of these situations is an example of designated agency? a Cindy's broker at Homeworks Realty appoints her as the buyer's agent in a transaction. Tim's broker at Great Homes Real Estate appoints him as the seller's broker in the same transaction. b Meredith's broker appoints her to represent both the buyer and the seller in a single transaction. c Michele is the firm's managing broker. She's the designated dual agent in all dual agency transactions. d The broker-in-charge at ABC Realty appoints Mark to represent the buyer and Todd to represent the seller in the same transaction. - Correct Answer d The broker-in-charge at ABC Realty appoints Mark to represent the buyer and Todd to represent the seller in the same transaction." "9/50 Negligent misrepresentation occurs when which of the following takes place? a One party makes a claim and provides supporting evidence. b One party makes a statement without reason or evidence to believe the statement is true. c One party states something that is hearsay. d One party states something that is known to be false - Correct Answer b One party makes a statement without reason or evidence to Negligent misrepresentation occurs when someone makes a statement without regard to the true facts." "10/50 Return on investment is another name for what? a Capitalization rate b Capital recapture c Dividends d The profit made from an investment - Correct Answer d The profit made from an investment Return on investment is the profit made from an investment, and is often referred to as ROI. It's usually expressed as an interest rate or discount rate.Wrong a Capitalization rate The capitalization rate is the rate of return on a real estate investment property based on the income that the property is expected to generate." "12/50 When you talk with your seller client Margo about the required seller disclosure form, she's hesitant to say anything about the "quirks," as she calls them, with the plumbing systems. She wants to be honest, but she's afraid this will put buyers off, and she'll never get the property sold. Which of these would be the best way to advise Margo? a Tell her it's fine to fudge a little on the disclosures, since she's right about it putting buyers off. b Tell her that buyers don't typically review the disclosure documents anyway. c Tell her that disclosing known defects, such as the plumbing quirks, will protect her from a potential lawsuit. d Tell her that the disclosure report is a formality, and it doesn't need to be shared with prospective buyers. - Correct Answer c Tell her that disclosing known defects, such as the plumbing quirks, will protect her from a potential lawsuit." "9/50 Negligent misrepresentation occurs when which of the following takes place? a One party makes a claim and provides supporting evidence. b One party makes a statement without reason or evidence to believe the statement is true. c One party states something that is hearsay. d One party states something that is known to be false. - Correct Answer " "11/50 North Carolina licensee Scottie is performing a no-fee CMA for his client Jameson. What does this mean? a He doesn't have a brokerage agreement with Jameson. b He has a brokerage agreement Jameson. c He has at least a non-provisional real estate license. d He's had her non-provisional license for less than three months. - Correct Answer B.He has a brokerage agreement Jameson. In North Carolina, a no-fee CMA may be performed for a consumer with whom there is a brokerage relationship. It's considered "no fee" because the CMA is performed as part of the overall brokerage services, so no separate fee is charged." "13/50 Which of the following statements may indicate a price fixing violation? a "I base my price on my services." b "My price is non-negotiable." c "This is the price my brokerage requires me to charge." d "This is the standard price for a full-service listing." - Correct Answer d "This is the standard price for a full-service listing."" "14/50 Camille is working with a seller who has asked her to lower her commission rate. What's the best way for her to explain why she won't do it? a Explain that her broker won't allow her to change the rate. b Explain that her fee is based on the services she provides. c Explain that her rate is in line with the industry standard. d Explain that her rate is the standard rate for the area market. - Correct Answer b Explain that her fee is based on the services she provides." "15/50 In order to engage in dual agency, brokers must obtain consent from _____. a All parties to the transaction b Only the buyer c Only the seller d The commission - Correct Answer a All parties to the transaction" "16/20 Broker Jan just finished her listing presentation for seller Marcia. Assuming that Marcia liked what Jan had to say and wanted to hire her as her listing agent, what should the two of them do next? a Jan and Marcia should review all of the listing contract provisions together, complete the form, and sign it. b Jan should list Marcia's property on the MLS and schedule an open house. c Marcia must call her lawyer and a notary before they sign the listing contract. d Marcia should sign the listing contract immediately. - Correct Answer a Jan and Marcia should review all of the listing contract provisions together, complete the form, and sign it." "17/50 You're a builder who wants to follow the national standards for measuring the square footage of a home you've built. Which of the following areas do you include? A master suite b An unfinished attic with six-foot ceilings c Attached garage d Detached pool house - Correct Answer " "18/50 Which of the following is an adverse material fact that must be disclosed? a There is an environmental hazard on the property. b The roses in the backyard are a rare variety. c The seller is moving because his elderly parents, who live out of state, need him to care for them. d The seller proposed to his wife in front of the brick fireplace. - Correct Answer a There is an environmental hazard on the property." "19/50 Which of the following is true of North Carolina listing agreement forms? a Brokerages may utilize handwritten agreements that detail each listing's specifics. b NCREC establishes rules for what must appear in listing contracts. c NCREC provides a standard form that all brokerage must use. d They're mandated by the National Association of REALTORS®. - Correct Answer b NCREC establishes rules for what must appear in listing contracts.There's no requirement that a written listing agreement be on a specific form. However, NCREC requires that brokers use only pre-printed forms that contain clear and unambiguous language. The commission also stablishes rules for what must appear in listing contracts." "20/50 Which of the following licensee actions is an example of first substantial contact? a Gertrude shows a buyer a property. b Helena answers a caller asking about the size of a listing she has for sale. c Orlando reads off the advertised features of a house with a caller. d Thalia greets visitors at an open house. - Correct Answer a Gertrude shows a buyer a property. Wrong b Helena answers a caller asking about the size of a listing she has for sale Greeting visitors and answering calls aren't examples of first substantial contact." "21/50 Which of the following is an example of a buyer's agent fulfilling the duty of accounting? a Alexis terminates her agency agreement with her client when he refuses to abide by state anti-discrimination laws. b Andy lines up a showing of a home that has all the items on his buyer's wish list, even though the commission split is far lower than he normally sees. c Larry seeks out confidential information about the seller of a home his client is interested in, specifically the seller's motivation to sell. d Tiffany ensures her client has copies of all the contracts he signs and keeps him updated on how his earnest money funds are being handled. - Correct Answer d Tiffany ensures her client has copies of all the contracts he signs and keeps him updated on how his earnest money funds are being handled." "22/50 Sellers _____ obtain a one-year home warranty, according to the listing contract. a May b May not c Must d Shouldn't - Correct Answer a May" "23/50 Investing in capital improvements to a property is one way to stall _______. A Cash flow B Competition C Obsolescence D Vacancy - Correct Answer C Obsolescence" "24/50 What makes a "Choose Your Neighbor" marketing letter potentially discriminatory? a It limits the availability of the property for sale to those who are "pre-approved" by neighbors. b It prevents illiterate neighbors from participating in selection of buyers. c The letters don't allow neighbors to agree on the actual buyer. d There's no requirement for the number of neighbors who receive the letter. - Correct Answer a It limits the availability of the property for sale to those who are "pre-approved" by neighbors." "25/50 Violators of the North Carolina Telephone Solicitations Act can face fines of up to how much? a $1,000 for the first violation b $11,000 for the first violation c $500 for the first violation d More than $40,000 for the first violation. - Correct Answer c $500 for the first violation" "26/50 Your seller client has an offer for $300,000. If the agreed-upon commission is 5%, what is net to seller before any other costs are taken into account? a 280,000 b $285,000 c $290,000 d $295,000 - Correct Answer b $285,000" "27/50 Paulo signed an open listing agreement with Debbie, his real estate agent. Which of the following statements is true? a Debbie will receive her commission regardless of who brings the buyer to the property. b If Paulo finds a buyer on his own, he doesn't owe anyone a commission. c Paulo may not have more than one open listing d Paulo won't owe a commission if he finds the buyer, but the buyer will have to pay the commission. - Correct Answer b If Paulo finds a buyer on his own, he doesn't owe anyone a commission." "28/50 Which of the following items would appear on an operating budget? a Available loans b Gross income c Notes payable d Total assets - Correct Answer " "29/50 When performing a market analysis, what do you do with the adjusted sales prices of comparables to determine market value of the subject property? a Average them. b Select the highest sales price if the market is hot, and the lowest if it's cold. c Weigh the comparable with the fewest adjustments to sales price most heavily. d Weigh the comparable with the most adjustments to sales price most heavily. - Correct Answer c Weigh the comparable with the fewest adjustments to sales price most heavily." "30/50 Gail is excited to take advantage of social media to market her business. But she's cautious, because she knows that if she doesn't include ______ in advertising on social media, she could be found guilty of a violation. A large marketing budget b A personal assistant c Her brokerage's name d Her phone number - Correct Answer c Her brokerage's name" "31/50 ______ is an acronym that can help you remember an agent's fiduciary duties. CARE OF DUE CARE FAR GONE OLD CAR - Correct Answer Obedience, Loyalty, Disclosure, Confidentiality, Accountability and Reasonable Care/Diligence)" "32/50 Real estate professionals must exercise reasonable care in all of their real estate dealings, and owe the duties of honesty and fairness to ______. All parties Customers only Other licensees only Their clients only - Correct Answer All parties" "33/50 Kelli has a buyer agency agreement with Charles, a licensee. Kelli's brother, Darby, is going to showings with Kelli and is working to help her decide which house is the best fit. Who is/are Charles client(s)? Kelli Kelli and Darby Kelli and the seller The seller - Correct Answer Kelli" "34/50 A North Carolina brokerage that represents only sellers is cooperating with a brokerage that represents only buyers. Which of the following statements is true about this situation? a Agents who represent the buyer don't ever have to disclose this fact to the seller or seller's agent. b If firms cooperate on a transaction, the agents involved are automatically dual agents. c The broker who finds the buyer can be either the buyer's agent or the seller's sub-agent. d The listing brokerage must always pay the buyer agency brokerage a finder's fee if they cooperate on a successful transaction. - Correct Answer c The broker who finds the buyer can be either the buyer's agent or the seller's sub-agent." "35/50 A living room is 15 feet long and 18 feet wide. How do you calculate the square footage? Add the length to the width and multiply by two. b Divide the length by the width. c Multiply the length by the width. d Multiply the length by the width and divide by two. - Correct Answer " "36/50 Frank is representing Jonathan in the sale of his home. A buyer approaches Frank at Jonathan's open house, and Frank agrees to represent her in purchasing Jonathan's house. What must Frank do to avoid an illegal dual agency situation? a Inform the buyer that he represents the seller. b Obtain dual agency consent from all parties. c Obtain dual agency consent from the buyer. d Obtain dual agency consent from the seller. - Correct Answer b Obtain dual agency consent from all parties." "37/50 Broker Ida found out that a day after terminating their listing agreement, her former seller client entered into a contract to sell her home to a buyer who came to see the property during Ida's listing term. Which clause in the listing agreement entitles Ida to a commission? None; Ida's listing agreement is terminated so she cannot claim a commission. b The listing agent rights clause protects Ida. c The protection period provision does this. d The seller honesty clause protects the broker. - Correct Answer c The protection period provision does this." "38/50 Which of the following is a common issue within a structure after flooding, especially if the water damage isn't addressed right away? a Asbestos b Mold c Radon d Wood-destroying insects - Correct Answer b Mold" "39/50 You're measuring the square footage of a single-family home you've just built. What national requirements apply to your measurements? There are no national requirements. You must measure from the inside out. You must measure from the outside in. You must measure from the top down. - Correct Answer There are no national requirements." "40/50 The debt-to-income ratio is calculated using _______ income. Gross Investment Net Portfolio - Correct Answer Gross" "41/50 When writing additional terms and conditions into the listing contract, it is recommended that ______. Acronyms are used whenever possible to keep the section concise b The broker uses as much technical legal jargon as possible c The broker uses clear and unambiguous language d The seller writes the additions into the contract - Correct Answer c The broker uses clear and unambiguous language D Wrong A broker may draft additional provisions into the listing contact without practicing unauthorized practice of law. However, it is strongly recommended that any additions are written in clear and unambiguous language." "42/50 Jane is working with her first seller client. She's excited to begin marketing the property and to hold an open house. Which of the following is something she should do? a Limit advertising. b Only be present to open and close the house. c Schedule the open house for a day and time when the owner can be present. d Schedule the open house soon after the property listing hits the market. - Correct Answer d Schedule the open house soon after the property listing hits the market" "43/50 One major disadvantage to a seller who has an open listing agreement is that ______. If the seller finds a buyer, the agent gets no commission No matter who brings the buyer, the listing agent gets a commission The listing agent may pay less attention to the listing The seller isn't limited to working with one broker - Correct Answer " "44/50 Consuela is listing her house with agent Mimi. They both know that the porch roof must be replaced soon. Which of the following is true about this situation? a Consuela doesn't have to disclose this, but Mimi does. b Consuela has an obligation to disclose this fact on the North Carolina disclosure form. c Mimi must follow Consuela's instructions about whether or not to disclose this fact to potential buyers. d When asked about the roof directly, Mimi should answer, "Legally, I'm not allowed to discuss this." - Correct Answer a Consuela doesn't have to disclose this, but Mimi does. Wrong b Sellers in North Carolina don't have to disclose property defects, but agents do." "45/50 What is the formula NOI ÷ V = R used to calculate? The capitalization rate The rate of future growth The recapture rate The terminal value - Correct Answer The capitalization rate" "46/50 Dominic is looking for his first home and has chosen to work with both Baxter from ABC Realty and Francesca from Park View Realty. Which type of buyer agency representation does Dominic have? a Closed agency b Exclusive agency c Exclusive right-to-represent d Open agency - Correct Answer Open agency is a non-exclusive buyer agency agreement that allows a buyer to hire more than one broker to find a property. The broker who finds the property the buyer ultimately purchases receives a commission. If the buyer locates the property, no commission is owed." "47/50 Which one of the following is an example of a buyer's agent fulfilling the duty of loyalty? a Chris ensures his clients are made aware in writing of any possible conflicts of interest that he might have. b Ian refuses to share information about his client's motivation to buy with the seller's agent. c Jake seeks out confidential information about the seller of a home that his client is interested in, specifically the seller's motivation to sell. d Theo lines up a showing of a home that has all the items on his buyer's wish list, even though the commission split is far less than he normally sees. - Correct Answer d Theo lines up a showing of a home that has all the items on his buyer's wish list, even though the commission split is far less than he normally sees. Theo is fulfilling his duty of loyalty when he puts the needs of his clients above his own by finding a home that includes the items from their wish list, even though his commission will be less. B wrong" "48/50 Which of the following questions can you ask the seller? a "I heard they sometimes try to convince sellers to lie on the property disclosure forms. Did they ask you to do this? b "When does your agreement with them expire?"" c Why did you decide to go with them when I am better?"" d Would you like some help dissolving your contract with them so you can look for another agent?" - Correct Answer b "When does your agreement with them expire?""" "49/50 North Carolina broker Sam represented both buyer Barney and seller Sally in a single real estate sales transaction using a written agreement authorizing dual agency. Under this agreement, what information about one party must Sam NOT disclose to the other party without that person's permission? a Sally is willing to take $230,000 for the property if necessary b The buyer is getting a mortgage loan. c The house has termites. d The property's listing price is $250,000. - Correct Answer a Sally is willing to take $230,000 for the property if necessary" "50/50 Are landowners ever permitted to use their property for a purpose inconsistent with zoning ordinances? a No, landowners must always comply with zoning ordinances. b Yes, a variance or special use permit may be allowed. c Yes, if the planning board issues a moratorium. d Yes, only if the nonconforming use is grandfathered in. - Correct Answer b Yes, a variance or special use permit may be allowed."