Exam (elaborations)
301 NC Post-licensing Exam/303 Complete Q’s and A’s
- Course
- Institution
301 NC Post-licensing Exam/303 Complete Q’s and A’s
[Show more]
Content preview
301 NC Post-licensing Exam/303Complete Q’s and A’s
An agent's duties to third parties include all the following EXCEPT
A) fairness.
B) obedience.
C) disclosure of material fact.
D) honesty. - -B) obedience.
- Derrin hires Austin with Best Homes Realty to list his home for sale. As
Austin is completing the listing agreement, Derrin mentions that the hot
water heater has not worked for a couple of weeks and is not planning on
repairing it since he is selling the home. Derrin tells Austin that he cannot
share that information with anyone as it might affect the sale of the home.
What is the BEST course of action for Austin at this time?
A) If Austin shares the information regarding the hot water heater, he will be
in violation of his fiduciary duties, and Derrin can sue him for disclosing
confidential information.
B) Austin can share the information with people at Best Homes Realty but
cannot share it with any firm representing a buyer.
C) Austin must disclose that the hot water heater is not working because it is
a material fact.
D) Austin must obey the seller. Austin and Best Homes Realty owe fiduciary
duties to their clien - -C) Austin must disclose that the hot water heater is
not working because it is a material fact.
- Armin, a broker affiliated with Best Homes Realty, listed a property for sale
and conducted an open house. Courtney visited the open house and decided
to make an offer. The seller had completed the Residential Property and
Owners' Association Disclosure Statement (RPOADS) indicating all defects
the seller knows that exist about the property. In this situation, which of the
following statements is TRUE?
A) Courtney needs to be advised to still conduct a full home inspection.
B) Since the seller disclosed all known material facts, they have complied
with the Doctrine of Caveat Emptor and Courtney does not need to complete
a full home inspection.
C) Since the seller disclosed all known material facts that they were aware
of, Courtney does not need to complete a full home inspection.
D) Armin can assure Courtney that the seller has disclosed all material facts
and she does not need to get her own home inspection. - -A) Courtney
needs to be advised to still conduct a full home inspection.
- A buyer and a seller are negotiating the terms of a possible contract. The
seller counteroffers to the buyer, and the buyer wants to think about it
,overnight. The next day the buyer calls the selling agent and says they
would like to accept the seller's counteroffer. Before verifying that the buyer
had actually signed the counteroffer, the selling agent calls the listing agent
to say the buyer had accepted the seller's counteroffer. The seller then goes
on to purchase another house based on the buyer's "acceptance" of their
counteroffer. When the selling agent goes to pick up the signed paperwork
from the buyer, the buyer states they never signed the counteroffer and do
not want to buy the seller's home. Which of the following statements is
correct?
A) The selling agent is not responsible for the misrepresentation.
B) Both the buyer and the selling agent are responsible for the
misrepresentation.
C) Neither the buyer - -D) The selling agent is responsible for the
misrepresentation.
- The real estate broker's fiduciary responsibility to keep the principal
informed of all facts, including property condition and issues that affect a
seller's willingness to sell and a buyer's willingness to buy, is the duty of
A) reasonable skill, care, and diligence.
B) disclosure.
C) obedience.
D) accounting. - -B) disclosure.
- The duties owed from the "agent" to the "principal" are BEST described by
which of the following?
A) Obedience, loyalty, accounting, and reasonable care
B) Fairness and honesty
C) Fairness, honest, obedience, loyalty, accounting, reasonable skill, and
care
D) Obedience, loyalty, disclosure, confidentiality, accounting, reasonable
skill, care, and diligence - -D) Obedience, loyalty, disclosure, confidentiality,
accounting, reasonable skill, care, and diligence
- Which of the following BEST describes subagent?
A) Literally the agent of an agent, a person designated or employed by an
agent to perform all or part of the agent's assigned tasks or services on
behalf of the agent's principal
B) The person who authorizes another to act on the principal's behalf within
specified parameters and to whom the agent owes certain legal duties
C) The person acting for and on behalf of the principal within the bounds of
the authority granted and who owes fiduciary duties to the principal
D) The relationship that exists when one person is authorized to act for and
on behalf of another - -A) Literally the agent of an agent, a person
designated or employed by an agent to perform all or part of the agent's
assigned tasks or services on behalf of the agent's principal
, - Which of the following statements is TRUE regarding agency agreements?
A) Listing agreements, property management agreements, buyer agency
agreements, and tenant representation agreements can all be express oral
agreements for a period of time.
B) Listing agreements and property management agreements must be
express written agreements from the beginning of the relationship and buyer
agency agreements and tenant representation agreements can be in express
oral agreements for a period of time.
C) Listing agreements and buyer agency agreements must be express
written agreements from the beginning of the relationship and property
management agreements and tenant representation agreements can be
express oral agreements for a period of time.
D) Listing agreements and property management agreements can express
oral agreements for a period of time and buyer agency agreements and
tenant representation agreements must be in ex - -B) Listing agreements
and property management agreements must be express written agreements
from the beginning of the relationship and buyer agency agreements and
tenant representation agreements can be in express oral agreements for a
period of time.
- Which of the following statements BEST describes North Carolina Unfair
Deceptive Practices Act?
A) This law prohibits disclosure regarding facts about the property itself or
the surrounding area.
B) This law prohibits unfair or deceptive acts or practices in commerce and
applies to the sale or rental of real estate and to real estate brokers.
C) This law holds that—except in cases involving fraud by the seller or the
seller's agent—the seller has no affirmative obligation to disclose information
about the property being sold to the purchaser and places the burden on the
buyer to investigate the property before contracting to purchase the
property.
D) This law prohibits making generalized expression of a broker's opinion
about a property. - -B) This law prohibits unfair or deceptive acts or
practices in commerce and applies to the sale or rental of real estate and to
real estate brokers.
- George knows that the property is about to be rezoned for commercial use,
which will greatly increase the value of the property. George does not share
this information with the seller and offers to buy the property for himself as
an investment. George closes on the property with the seller and then after
the rezoning has been finalized, George sells the property at a substantial
profit. This is an example of
A) self-dealing.
B) making false promises.
C) undisclosed dual agency.
D) improper dealing. - -A) self-dealing.
, - Lanzo is in the process of listing a house for sale and tells the seller that he
will stage the house, steam clean the carpets, and hire a professional
cleaning crew to clean prior to showing the house. Once the seller signed the
listing agreement, Lanzo failed to provide these services. Lanzo may be
guilty of which of the following?
A) Making false promises
B) Undisclosed dual agency
C) Self-dealing
D) Improper brokerage commission - -A) Making false promises
- Who is required to disclose material facts?
A) Sellers and listing agents
B) Sellers and buyers
C) Listing agents and selling agents
D) Sellers, buyers, listing agents, and selling agents - -C) Listing agents and
selling agents
- Francis listed a property for sale and did not investigate the property for
material facts because he relied on the seller's statement that there was
nothing wrong with the property. It was later discovered that there was a
substantial leak in the roof that was easily detectable. In this situation,
Francis could be held liable for which of the following?
A) The seller will be held responsible and Francis has no liability
B) Negligent misrepresentation or omission.
C) Willful misrepresentation or omission.
D) Francis is not required to discover material facts since he has the seller's
word that there is nothing wrong. - -B) Negligent misrepresentation or
omission.
- Which of the following statements regarding agent's duties under real
estate license law is TRUE?
A) A broker's duties under license law when dealing with parties to a
transaction apply regardless of the broker's agency relationship to such
parties.
B) A broker's duties under license law when dealing with parties to a
transaction apply only to the firm's clients.
C) A broker's duties under license law when dealing with parties to a
transaction apply only to the firm's customers.
D) A broker does not have duties under license law as brokers are only
bound by North Carolina Real Estate Commission rules. - -A) A broker's
duties under license law when dealing with parties to a transaction apply
regardless of the broker's agency relationship to such parties.
- When it comes to standards for selling agents, which of the following
statements is TRUE?
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Nursephil2023. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $20.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
82215 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now