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NC POST LICENSING 301 PRACTICE EXAM 1
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NC POST LICENSING 301 PRACTICE EXAM 1
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NC POST LICENSING 301 PRACTICE EXAM 11/50 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. - Answers- 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. - Answers- 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. - Answers-
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 - Answers- 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 - Answers- 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. - Answers- a An MLS is available via a fee-based subscription and is
an option that most sellers prefer.
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 - Answers- 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. - Answers- 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. - Answers-
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.
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