quiz Flashcards - relationship.B)the seller's subagent that is wo...

quiz Flashcards Fiduciary refers toA)the principal in an exclusive agency relationship.B)the seller's subagent that is working with the buyer.C)the relationship of trust between the agent and the principal.D)the independent contractor status of a broker.the relationship of trust between the agent and the principal.While not directly representing third parties, North Carolina

requires agents to perform the following three duties:

honesty, fairness, andA)loyalty.B)confidentiality.C)accounting.D)disclosure of material facts.disclosure of material facts The common law of agency evolved over time, dating back to origins inA)Canada.B)Massachusetts.C)England.D)Greece.England In real estate, which of these is the person who hires and delegates to an agent through a brokerage contract the responsibility for representing that person's best interests ?A)Principal or clientB)Agent or subagentC)Lender or loan officerD)Facilitator or transaction broker principle or client Fraud is the intentional misrepresentation of a material fact in such a way as to harm or take advantage of another person. While fraud is illegal, an activity that is legal is opinion statements that exaggerate a property's benefits, which are calledA)puffing.B)exaggerating.C)facing the property.D)blue-skying.puffingAlthough puffing is legal and a common practice, it must not constitute a misrepresentation of the property.If a broker's misrepresentation causes loss or financial injury to a buyer customer, which of the following could be found liable?PrincipalBrokerA)II onlyB)Both I and IIC)Neither I nor IID)I only Both I and II A broker lists a property for sale at $100,000 with a 5% commission. The broker obtains a verbal offer to purchase the property from a prospective buyer. The seller indicates to the broker that the offer would be acceptable if submitted in writing. Before it can be put into writing, the buyer withdraws the verbal offer. In this situation, the broker would be entitled toA)no commission.B)sue the buyer for breach of contract.C)only a partial commission.D)a commission of $5,000.no commission Which of these would be an example of dual agency?A)A broker finding a buyer for a for sale by owner propertyB)A broker-in-charge assisting a buyer client in the purchase of a property that was listed by a provisional broker of the firmC)A provisional broker and a broker licensee from firms

that are cooperating in a transactionD)A firm that represents buyers and sellers A broker-in-charge assisting a buyer client in the purchase of a property that was listed by a provisional broker of the firm The primary function of the NCREC is to license and regulate real estate agents (persons and firms who sell,

lease, etc., real estate for others). What does NCREC stand for?A)North Carolina Real Entity CompanyB)North Carolina Real Enquiry CommissionC)North Carolina Real Estate CorporationD)North Carolina Real Estate Commission North Carolina real estate commission

Which agent is defined as "is authorized to represent the principal in only one specific act or business transaction, and under limited, detailed instructions with no power to bind the principal"?A)A broker agentB)A universal agentC)A general agentD)A special agent a special agent A property manager is BEST described as aA)universal agent.B)special agent.C)facilitator.D)general agent.general agent The amount of compensation due to a broker licensee from the brokerage firm is determined byA)the listing agreement.B)the state real estate regulator to ensure the public the most protection from incompetent licensees.C)the local real estate board's minimum wage guarantee to agents.D)the in-house employment contract.in house employment contract Which of the following statements is TRUE about types of agency?A)A listing agent usually acts as a general agent of the seller.B)A property manager usually acts as a special agent of the landlord.C)A buyer's agent usually acts as a universal agent for the buyer.D)A real estate licensee usually acts as a general agent of an affiliated firm.a real estate licensee usually acts as a general agent of an affiliated firm The fiduciary relationship obligates the broker to act in good faith at all times, obeying the principal's instructions in accordance with the contract. That obedience is not absolute, however. Brokers may not obey any instructions that areA)self-incriminating.B)not in their best interest.C)incoherent.D)unlawful or unethical.unlawful or unethical Broker Francine has listed her next-door neighbor Jim's house for sale. Although Jim does not disclose it on the North Carolina Residential Property and Owners' Association Disclosure Statement, Francine knows that his basement floods during the spring rains each year. Jim has repainted and replaced carpet, so he does not see the need to disclose "ancient history." Who is required to disclose this information?A)Neither Jim nor FrancineB)Both Jim and FrancineC)JimD)Francine Francine If a seller informs a broker that the house is for sale "as is," which of the following would be an appropriate action for the broker?A)The broker visually inspects the property, sees a water leak in the ceiling, and informs potential buyers about it.B)The broker agrees to allow the seller to handle all conversations with potential buyers about the condition of the property.C)The broker advises potential buyers that an "as is" property requires no property disclosures.D)The broker informs all potential buyers that there is nothing wrong with the property, even though the broker has not inspected it.The broker visually inspects the property, sees a water leak in the ceiling, and informs potential buyers about it.