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NC 302 POST LICENSING QUESTIONS
WITH DETAILED VERIFIED ANSWERS
Classifying contracts:
Express & Implied Ans: Express: Bilateral, executed
Intentions stated (orally or written)
Implied: Unilateral, executory
Inferred from conduct or actions
Classifying contracts:
Bilateral & Unilateral Ans: Bilateral - two promises (both parties bound
to do something)
Unilateral - Only one party is bound
Classifying Contracts:
Executed & Executory Ans: Executed - All tasks performed (After
closing)
Executory - tasks remaining to be done (before closing)
Statute of Frauds Ans: Everything needs to be in writing
DREAM OILS (Statute of Frauds) Ans: Deeds
Restrictive covenants
Easements
Assignments
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Mortgages
Options
Installment Land Contracts
Leases - longer than 3 years
Sales Contracts
Offer & Acceptance Ans: Seller (OfferEE) & Buyer (OfferOR) -- ORs
GIVE, EEs RECEIVE
OfferOR may revoke or withdraw the offer anytime prior to acceptance
OfferEE can accept, reject or counter -- and when they counter, they are
now the offerEE
This counter offer VOIDS original offer
All offers must be communicated
Deliver all offers immediately but never later than 3 days
Retention of Records 58A.108 Ans: A broker must provide copies of
transaction documents:
- To the Firm or Sole Proprietorship (BIC) with which they are affiliated
- Within 3 days
- Keep records for 3 years after
Closing
Termination of Agency
Disbursement of Trust Monies
WHICHEVER OCCURS LAST
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Brokers and BIC are responsible for keeping records in a transaction
These are CALENDAR days, not business days
You don't count the day it was executed/received (if received Tuesday,
have to upload by Friday)
Buyer's Rights w/ an offer Ans: A buyer has the absolute right of
withdraw/revoke
Even if offer stated it would be held open longer
The withdraw must be communicated to the other party and/or their
agent
An offer is terminated any time: Ans: Counter offer
Rejection by the offeree
Revocation by the offeror
Destruction of the property (Think hurricane)
Death or insanity of the offeror
Agent Guidelines w/ offers Ans: A listing broker or agent is required to
respond in writing that an offer was submitted if the cooperating broker
who submitted the offer so requests
The listing broker or agent must respond in the affirmative unless the
seller has provided written notification waiving the obligation to have the
offer presented
Agent has to present all offers all the way throughout the contract, up to
closing
Creation of a counter offer Ans: Any change in an offer, no matter how
small creates a counter offer
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Counter offer must be accepted and communicated to the other party to
create a contract
Proper use of From 340-T: NCAR Response to Buyer's Offer
A valid contract is formed when a contract is signed, delivered and
communicated Ans: "Communicating an offer or an acceptance to a
principal's agent is the same as communicating directly to the principal"
Beware Dual Agency is Communication is IMMEDIATE Ans: When a dual
agent has been informed that the seller has accepted an offer is already
considered communicated to the buyer
Methods of communicating acceptance: Ans: Oral
Personal delivery
Mail or FedEx
Electronic communication
The mailbox rule Ans: : We measure delivery from when it is SENT, not
RECEIVED (Page 280)
Mutual Mistakes Ans: Mistake of "Material Fact" - read pg. 283 - 284
May allow buyer to rescind the contract and be refunded all monies
Does NOT apply to "Mistakes of Law"
Fraud & Misrepresentation Ans: Fraud makes contracts voidable
Willful misrepresentations or omissions
Of material facts
Make the contract voidable by the person deceived
Unfair or deceptive trade practices act: Ans: A misleading opinion or
false inducement
NC 302 POST LICENSING QUESTIONS
WITH DETAILED VERIFIED ANSWERS
Classifying contracts:
Express & Implied Ans: Express: Bilateral, executed
Intentions stated (orally or written)
Implied: Unilateral, executory
Inferred from conduct or actions
Classifying contracts:
Bilateral & Unilateral Ans: Bilateral - two promises (both parties bound
to do something)
Unilateral - Only one party is bound
Classifying Contracts:
Executed & Executory Ans: Executed - All tasks performed (After
closing)
Executory - tasks remaining to be done (before closing)
Statute of Frauds Ans: Everything needs to be in writing
DREAM OILS (Statute of Frauds) Ans: Deeds
Restrictive covenants
Easements
Assignments
, Page | 2
Mortgages
Options
Installment Land Contracts
Leases - longer than 3 years
Sales Contracts
Offer & Acceptance Ans: Seller (OfferEE) & Buyer (OfferOR) -- ORs
GIVE, EEs RECEIVE
OfferOR may revoke or withdraw the offer anytime prior to acceptance
OfferEE can accept, reject or counter -- and when they counter, they are
now the offerEE
This counter offer VOIDS original offer
All offers must be communicated
Deliver all offers immediately but never later than 3 days
Retention of Records 58A.108 Ans: A broker must provide copies of
transaction documents:
- To the Firm or Sole Proprietorship (BIC) with which they are affiliated
- Within 3 days
- Keep records for 3 years after
Closing
Termination of Agency
Disbursement of Trust Monies
WHICHEVER OCCURS LAST
, Page | 3
Brokers and BIC are responsible for keeping records in a transaction
These are CALENDAR days, not business days
You don't count the day it was executed/received (if received Tuesday,
have to upload by Friday)
Buyer's Rights w/ an offer Ans: A buyer has the absolute right of
withdraw/revoke
Even if offer stated it would be held open longer
The withdraw must be communicated to the other party and/or their
agent
An offer is terminated any time: Ans: Counter offer
Rejection by the offeree
Revocation by the offeror
Destruction of the property (Think hurricane)
Death or insanity of the offeror
Agent Guidelines w/ offers Ans: A listing broker or agent is required to
respond in writing that an offer was submitted if the cooperating broker
who submitted the offer so requests
The listing broker or agent must respond in the affirmative unless the
seller has provided written notification waiving the obligation to have the
offer presented
Agent has to present all offers all the way throughout the contract, up to
closing
Creation of a counter offer Ans: Any change in an offer, no matter how
small creates a counter offer
, Page | 4
Counter offer must be accepted and communicated to the other party to
create a contract
Proper use of From 340-T: NCAR Response to Buyer's Offer
A valid contract is formed when a contract is signed, delivered and
communicated Ans: "Communicating an offer or an acceptance to a
principal's agent is the same as communicating directly to the principal"
Beware Dual Agency is Communication is IMMEDIATE Ans: When a dual
agent has been informed that the seller has accepted an offer is already
considered communicated to the buyer
Methods of communicating acceptance: Ans: Oral
Personal delivery
Mail or FedEx
Electronic communication
The mailbox rule Ans: : We measure delivery from when it is SENT, not
RECEIVED (Page 280)
Mutual Mistakes Ans: Mistake of "Material Fact" - read pg. 283 - 284
May allow buyer to rescind the contract and be refunded all monies
Does NOT apply to "Mistakes of Law"
Fraud & Misrepresentation Ans: Fraud makes contracts voidable
Willful misrepresentations or omissions
Of material facts
Make the contract voidable by the person deceived
Unfair or deceptive trade practices act: Ans: A misleading opinion or
false inducement
