NC Real Estate Exam Practice Questions Flashcards

NC Real Estate Exam Practice Questions Flashcards A buyer signs a copy of the Vacation Rental Addendum that is included in an Offer to Purchase and Contract. The

buyer's agent:

has 3 calendar days to deliver a copy to the buyer.A provisional broker has completed all required courses for the current license year and paid his renewal fee. The provisional broker's BIC forgot to take the Broker-in-Charge Update course. On July 1, what will be the status of the provisional broker's license?InactiveA provisional broker license is inactive absent a BIC, so when a BIC expires or goes inactive, all provisional brokers affiliated with the BIC go inactive.A listing agent has a closing scheduled for July 2nd. The listing agent takes two CE electives for a total of 8 hours but fails to take the GENUP. The listing agent pays his renewal fee and attends the settlement meeting on July 2nd. Which of the following is TRUE?Neither the listing broker nor the firm may be paid because the listing broker engaged in real estate activities while on inactive status All residential listing agreements must contain which of the following?The Fair Housing paragraph During a listing presentation walk-through, the seller told the agent the roof leaks, and the agent made a note of this.The seller asked the listing agent not to share this with a buyer. While entering the information into the MLS, the agent did not include the note about the roof. Later, when a buyer's agent inquired if there was anything wrong with the property, the listing agent remarked everything seemed fine. What is the listing agent guilty of?Willful misrepresentation A non-provisional broker is preparing to list a property for sale. The CMA indicates a probable sales price of $150,000. The seller says he wants to list the property for $125,000. The licensee offers to purchase the lot for $125,000 after disclosing the CMA. The seller accepts. Is the broker subject to discipline?No. The listing broker met the fiduciary obligations Henry, a buyer from Kentucky was hesitant to enter into a written buyer agency agreement at the inception of his relationship with his agent. All of the following are true,

EXCEPT?

An agent cannot insist that a buyer sign an Exclusive agency agreement before the agent will work for the buyer A broker discovers a seller client who owns a property in severalty recently married. Which of the following statements is TRUE?The broker should notify the seller that the new spouse must sign to sell for marketable title Which of the following statements about listing agreements is TRUE?A listing agreement must automatically terminate A broker in North Carolina creates My Commissions, LLC for the sole purpose of collecting compensation the broker earns as an agent for ABC realty. The broker is the only

member and the manager of the LLC. Which of the following is TRUE?My Commissions, LLC will require a firm license and a qualifying broker

Which of the following ads run by Marty Clark, a provisional broker with ABC Realty, would be acceptable according to Commission Rule and License Law including Fair Housing and Regulation Z?Best deal in Knightdale available for a low, low price. Call Marty Clark, ABC Realty for details, 919.555.1212 A buyer makes an offer using a buyer's agent. The buyer's agent delivers the offer to the listing agent of the same firm.The listing agent and the seller meet to discuss the offer, and the seller accepts the offer as written. Before communication of acceptance to the buyer, the buyer calls to withdraw the offer. Which of the following is TRUE?The buyer may not withdraw the offer A licensee enters into an exclusive listing agreement that limits the firm's duties to entering the information in the Multiple Listing Service and holding 2 open houses. The seller will be responsible for offer negotiations. The broker drafts these provisions into a Limited Service Agreement.Has the licensee violated License Law?No. Since the brokerage is a party to the listing agreement, the licensee can draft the language.A broker lists a property for sale for 6 months. No offers are received during the listing period. The seller may be

required to pay a commission to the listing firm:

when a contract is formed during the protection period by a buyer that viewed the property during the active listing.A provisional broker acting as a buyer's agent assists a buyer in negotiating the purchase of a property using the standard 2-T form. The negotiations take place over an extended period. The buyer withdraws their final offer and no contract forms. How should be broker handle the due diligence fee and the earnest money checks?A provisional broker must immediately deliver all trust funds to the broker-in-charge, and the broker-in-charge is strictly responsible. When the negotiations fail, and no agreement is formed both the due diligence fee and the earnest money go back to the buyer.Which contract best describes the creation of a general agency relationship?Independent contractor agreement between a broker and firm The broker-in-charge appoints a provisional broker to act as a designated agent for the buyer while another provisional broker is appointed to represent the seller. Has the broker-in-charge violated license law and rules?No. The broker-in-charge has acted in accordance with license law and rules.A Property is located near a hog farm. News articles have been published regarding the odor that is impacting the neighborhood where the subject property is located. A buyer's agent from outside the area writes an offer failing to disclose the hog farm to the buyer. Which of the following is

CORRECT?

The buyer's agent is guilty of negligent omission of a material fact.An agent makes a full-price offer on a property he listed on behalf of a seller. The offer is made under the name of the agent's single-member LLC, and he does not inform the seller that he is the buyer. Which of the following best describes this situation?There is a conflict of interest, and the agent could be disciplined for his actions.A licensee lists a property for sale. In the listing the licensee includes "The Listing Agent and Owner make no representations or disclosures regarding the condition of

the property". The licensee is aware of a latent defect. Has the licensee violated License Law or Commission Rules?Yes. The licensee is obligated to disclose material facts that are known.