303 NC POST LICENSING EXAM NEWEST ACTUAL

303 NC POST LICENSING EXAM NEWEST ACTUAL

EXAM 300 QUESTIONS AND CORRECT DETAILED ANSWERS

(VERIFIED ANSWERS) |ALREADY GRADED A

Lucas has signed a listing agreement with Dream Homes Realty for a period of 120 days. Dream Homes Realty advertises the property and makes numerous efforts to sell the property. Sixty days into the listing period, Lucas decides he does not want to sell his home any longer and wants to terminate the listing agreement. Which of the following statements is TRUE?

• If Lucas unilaterally cancels his listing agreement, he has not breached his agreement and is not legally

liable for damages.

• Lucas can ask Dream Homes Realty to mutually agree to cancel. If they mutually agree, then there is

no liability for either party.

• Lucas can cancel his listing agreement and will not incur any additional liability.
• Lucas is not allowed to cancel his listing agreement for any reason, he is bound for the full 120 days. -

answer-B) Lucas can ask Dream Homes Realty to mutually agree to cancel. If they mutually agree, then there is no liability for either party.

The seller sold their home for $175,000 and the real estate commission was calculated to be 5.5% of the sales price. What is the total amount of commission the seller paid at closing?

A) $10,500

B) $8,750

C) $9,625

• $9,125 - answer-C) $9,625

In the listing agreement, the seller owes duties to the listing firm. Those duties include all the following

EXCEPT

• the seller shall cooperate with the firm by agreeing to pay the firm when they produce a ready,

willing, and able buyer.

• the seller shall agree to sell the home when the buyer has made an offer on the home with terms

listed in the listing agreement.

• the seller shall cooperate with the firm by providing the appropriate disclosure forms required by law.
• the seller shall cooperate with the firm by making the home available for showings. - answer-B) the

seller shall agree to sell the home when the buyer has made an offer on the home with terms listed in the listing agreement. 1 / 4

Which of the following statements is TRUE regarding the North Carolina Real Estate Commission (NCREC) and use of standard forms used with consumers in a real estate transaction?

• NCREC does not provide mandated agency agreements for any real estate transactions.
• All brokers must use the NCREC mandated agency agreements for residential transactions.
• NCREC does not provide mandated agency agreements for residential transactions, only for

commercial real estate.

• All brokers must use the NCREC mandated agency agreements for both commercial and residential

transactions. - answer-A) NCREC does not provide mandated agency agreements for any real estate transactions.

All of the following are ways that a listing agreement can be terminated without further liability EXCEPT

• Dissolution of the brokerage firm
• Destruction of the listed property
• Death of the listing broker
• Death or insanity of the owner - answer-C) Death of the listing broker

Samuel is completing a listing agreement with the seller, Emmerson, and they are filling in the information necessary to complete the price and terms Emmerson is willing to accept. Which of the following statements is TRUE regarding list price and terms?

• Samuel needs to have personally prepared an appraisal on the property for Emmerson before

advising them on listing price.

• Samuel needs to have completed some form of analysis to determine probable sales price for

Emmerson before advising them on listing price.

• Samuel has no duty to advise Emmerson on listing price because it would be a violation of their

fiduciary duties to the seller.

• Samuel needs to hire and pay for a licensed real estate appraiser to perform an appraisal on the

property in order to properly advise Emmerson on listing price. - answer-B) Samuel needs to have completed some form of analysis to determine probable sales price for Emmerson before advising them on listing price.

Tracy is affiliated with Green Acres Realty and recently listed a property. Shortly after signing the listing agreement on behalf of the firm, Tracy passes away. Which of the following statements would be true regarding the listing agreement? 2 / 4

• The listing agreement is still valid.
• The terms of the listing agreement will be carried out by Tracy's estate.
• The listing agreement is terminated when Tracy dies.
• The listing agreement would have to be terminated by a civil lawsuit. - answer-A) The listing

agreement is still valid.

Portia is signing a buyer agency agreement with her broker, Min, who is affiliated with Green Homes Realty. Which of the following content is NOT required to be contained in a buyer agency agreement?

• Fixed termination date with no automatic renewal
• Nondiscrimination clause
• Seller's signature
• Broker's license number - answer-C) Seller's signature

Bruno has met Pamela at an open house she is hosting and they decide to work together. Which of the following statements is TRUE regarding how they can move forward with an agency relationship?

• Bruno and Pamela cannot have an agency relationship until Pamela wants to write an offer on a

property.

• Bruno and Pamela can work together only if they have a written agency agreement.
• Bruno and Pamela can work under an oral agency agreement as long as it is expressed, meaning there

must be a clear understanding of all the terms of their agreement.

• Bruno and Pamela can work under an oral agency agreement until the first showing of a property and

then the agreement must be reduced to writing. - answer-C) Bruno and Pamela can work under an oral agency agreement as long as it is expressed, meaning there must be a clear understanding of all the terms of their agreement.

North Carolina Real Estate Commission (NCREC) rules dictate all of the following content to be included in all agency agreements between a consumer and a firm EXCEPT A) automatic extension clause.

• signature of all parties.
• nondiscrimination clause.
• real estate broker license number. - answer-A) automatic extension clause.
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Emilio is looking for a real estate broker to assist him with the purchase of a property. All the following agency agreement options would be available to him EXCEPT

• Emilio could agree to an express oral agency agreement until he writes an offer.
• Emilio could agree to an exclusive oral agency agreement until he writes an offer.
• Emilio could sign an exclusive buyer agency agreement with one firm.
• Emilio could agree to an express oral agency agreement that is open-ended and did not obligate him

for any time period. - answer-B) Emilio could agree to an exclusive oral agency agreement until he writes an offer.

Under a limited services listing contract, the listing broker is allowed to conduct showings to prospective buyers. - answer-False

Sharie is affiliated with a limited services firm and lists Jodi's property in multiple listing service (MLS) for a flat fee. Sharie does not visit the property to discover any material facts about the property. According to licensing law, which of the following statements is correct?

• Limited services listing broker agreements would still require the firm to discover and disclose all

material facts.

• Limited services listing broker agreements can limit their duties under licensing law.
• Limited services listing broker agreements can be written where they do not have to discover material

facts about the property.

• Limited services listing broker agreements can waive certain duties under licensing law. - answer-A)

Limited services listing broker agreements would still require the firm to discover and disclose all material facts.

Tiffany has hired a firm to represent her and wants to see a house that is listed by an unrepresented seller. What is the BEST course of action for Tiffany's agent at this time before she shows the property to Tiffany?

• Meet with the seller and ask them to enter into an agreement that does not create agency between

Tiffany's agent and the seller; it states that the seller will pay a commission if Tiffany decides to purchase their property

• Meet with the seller and require them to pay the buyer agent's commission
• Tiffany's agent is not allowed to meet with the seller prior to showing her the property as it would be

a violation of their agency agreement.

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