301 NC POST LICENSING FINAL STUDY EXAM QUESTIONS
WITH SOLUTIONS GRADED A+2025/2026
✔✔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?
A) A selling agent may rely on the accuracy of property information provided by a listing
agent in MLS only and must verify other forms of advertising.
B) Generally, a selling agent may rely on the accuracy of property information provided
by a listing agent.
C) A selling agent may never rely on the accuracy of property information provided by a
listing agent as they must always verify everything.
D) Neither the listing nor selling agent are liable for advertising as long as there is a
"disclaimer" warning for the reader to make an independent investigation. - ✔✔B)
Generally, a selling agent may rely on the accuracy of property information provided by
a listing agent.
✔✔Alfonso tells a prospective buyer that, in his opinion, the property they are about to
view is the most beautiful property in the neighborhood. Even if the property would be
considered to many as being very unattractive, the nature of Alfonso's statement would
be considered as
A) willful misrepresentation.
B) negligent misrepresentation.
C) false advertising.
D) puffing. - ✔✔D) puffing.
,✔✔Jessica is a broker working for a property management company that manages
Getty Luxury Apartments. Jessica promises a prospective tenant that the apartment will
be repainted and have the carpet replaced before the tenant moves in. Jessica fails to
have the work done after the lease is signed. This is an example of
A) making false promises.
B) self-dealing.
C) improper dealing.
D) undisclosed dual agency. - ✔✔A) making false promises.
✔✔Joseph, a broker affiliated with Right Homes Realty, lists a property for sale. Which
of the following statements BEST describes the relationship between Joseph and the
seller?
A) Joseph is the agent of the seller and Right Homes Realty is the subagent of the
seller.
B) Right Homes Realty is the agent of Joseph and the seller is a customer.
C) Joseph is the agent of the seller because the listing agreement is directly between
Joseph and the seller.
D) Right Homes Realty is the agent of the seller and Joseph is the subagent of the
seller. - ✔✔D) Right Homes Realty is the agent of the seller and Joseph is the subagent
of the seller.
✔✔Which of the following BEST describes the common law of agency?
A) Case law establishing the responsibilities of a person who acts for another
B) State licensing laws and statutes
C) The Code of Ethics prescribed by the local trade association
D) The disclosure requirement by the agent to third parties no later than first substantial
contact - ✔✔A) Case law establishing the responsibilities of a person who acts for
another
✔✔Elena hires Mendel and his firm to list her property for sale. They agree that Mendel
will hold an open house for the first two weekends the property is on the market. Mendel
creates an open house flyer and sends it to the printer with the square footage being
listed at 2,100 square feet instead of the actual square footage of 1,200 square feet.
Mendel does not notice the error. A buyer attends one of the open houses and makes
an offer on the property. Later, the error is discovered by the appraiser. In this situation,
which of the following statements is TRUE?
A) Mendel can be held liable for inaccurate advertising.
B) Mendel is not liable because open house flyers are not a form of advertising.
C) Mendel was not required to advertise square footage and only did so at the request
of the seller, therefore, the seller is liable.
D) Mendel made an honest mistake and will not be held liable. - ✔✔A) Mendel can be
held liable for inaccurate advertising.
, ✔✔Spencer has listed a home with Gigi and her firm for $190,000, and Gigi suggests to
a prospective buyer customer that they submit a low offer because of the seller's urgent
need to sell. The buyer offers $175,000, and the seller accepts it. In this situation:
A) Gigi's action was acceptable since the seller accepted the offer.
B) Any broker is encouraged to solicit such bids for the property.
C) Gigi acted properly to obtain a quick offer on the property.
D) Gigi has violated her agency relationship with the seller. - ✔✔D) Gigi has violated her
agency relationship with the seller.
✔✔All of the following statements regarding payment of an agent in a real estate
transaction is true EXCEPT
A) Payment of a firm by a buyer or seller does not create an agency relationship; the
agency agreement between the buyer or seller creates the agency relationship.
B) When a seller agrees to pay a buyer agent's firm, the payment does not
automatically create an agency relationship between the seller and the buyer agent's
firm.
C) In a buyer agency agreement, the buyer can obligate the buyer agent firm to first
seek the firm's compensation from the seller first, and then if the seller does not pay, the
buyer must pay the buyer agent firm.
D) When a seller agrees to pay a buyer agent's firm, the payment automatically creates
an agency relationship between the seller and the buyer agent's firm. - ✔✔D) When a
seller agrees to pay a buyer agent's firm, the payment automatically creates an agency
relationship between the seller and the buyer agent's firm.
✔✔All the following are considered categories of "material fact" EXCEPT
A) facts directly affecting the property.
B) facts about the property itself.
C) the seller's reasons for selling.
D) facts of special importance to a party. - ✔✔C) the seller's reasons for selling.
✔✔A licensee does not have actual knowledge of a material fact and consequently
does not disclose the fact, but a reasonably prudent licensee "should reasonably have
known" of such fact. In this case, the licensee may be guilty of which of the following if
they fail to disclose this fact to a buyer, seller, landlord, or tenant, even though the
licensee acted in good faith in the transaction.
A) Willful omission
B) Willful misrepresentation
C) Negligent misrepresentation
D) Negligent omission - ✔✔D) Negligent omission
✔✔Travis is holding an open house and Sarah stops by to view the home. Sarah starts
to tell Travis how much she would be willing to pay for the property when she makes an
offer. At this point, Travis discloses that he and his firm are representing the seller only,
then notifies Sarah of her agency options. The seller has already agreed to dual
WITH SOLUTIONS GRADED A+2025/2026
✔✔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?
A) A selling agent may rely on the accuracy of property information provided by a listing
agent in MLS only and must verify other forms of advertising.
B) Generally, a selling agent may rely on the accuracy of property information provided
by a listing agent.
C) A selling agent may never rely on the accuracy of property information provided by a
listing agent as they must always verify everything.
D) Neither the listing nor selling agent are liable for advertising as long as there is a
"disclaimer" warning for the reader to make an independent investigation. - ✔✔B)
Generally, a selling agent may rely on the accuracy of property information provided by
a listing agent.
✔✔Alfonso tells a prospective buyer that, in his opinion, the property they are about to
view is the most beautiful property in the neighborhood. Even if the property would be
considered to many as being very unattractive, the nature of Alfonso's statement would
be considered as
A) willful misrepresentation.
B) negligent misrepresentation.
C) false advertising.
D) puffing. - ✔✔D) puffing.
,✔✔Jessica is a broker working for a property management company that manages
Getty Luxury Apartments. Jessica promises a prospective tenant that the apartment will
be repainted and have the carpet replaced before the tenant moves in. Jessica fails to
have the work done after the lease is signed. This is an example of
A) making false promises.
B) self-dealing.
C) improper dealing.
D) undisclosed dual agency. - ✔✔A) making false promises.
✔✔Joseph, a broker affiliated with Right Homes Realty, lists a property for sale. Which
of the following statements BEST describes the relationship between Joseph and the
seller?
A) Joseph is the agent of the seller and Right Homes Realty is the subagent of the
seller.
B) Right Homes Realty is the agent of Joseph and the seller is a customer.
C) Joseph is the agent of the seller because the listing agreement is directly between
Joseph and the seller.
D) Right Homes Realty is the agent of the seller and Joseph is the subagent of the
seller. - ✔✔D) Right Homes Realty is the agent of the seller and Joseph is the subagent
of the seller.
✔✔Which of the following BEST describes the common law of agency?
A) Case law establishing the responsibilities of a person who acts for another
B) State licensing laws and statutes
C) The Code of Ethics prescribed by the local trade association
D) The disclosure requirement by the agent to third parties no later than first substantial
contact - ✔✔A) Case law establishing the responsibilities of a person who acts for
another
✔✔Elena hires Mendel and his firm to list her property for sale. They agree that Mendel
will hold an open house for the first two weekends the property is on the market. Mendel
creates an open house flyer and sends it to the printer with the square footage being
listed at 2,100 square feet instead of the actual square footage of 1,200 square feet.
Mendel does not notice the error. A buyer attends one of the open houses and makes
an offer on the property. Later, the error is discovered by the appraiser. In this situation,
which of the following statements is TRUE?
A) Mendel can be held liable for inaccurate advertising.
B) Mendel is not liable because open house flyers are not a form of advertising.
C) Mendel was not required to advertise square footage and only did so at the request
of the seller, therefore, the seller is liable.
D) Mendel made an honest mistake and will not be held liable. - ✔✔A) Mendel can be
held liable for inaccurate advertising.
, ✔✔Spencer has listed a home with Gigi and her firm for $190,000, and Gigi suggests to
a prospective buyer customer that they submit a low offer because of the seller's urgent
need to sell. The buyer offers $175,000, and the seller accepts it. In this situation:
A) Gigi's action was acceptable since the seller accepted the offer.
B) Any broker is encouraged to solicit such bids for the property.
C) Gigi acted properly to obtain a quick offer on the property.
D) Gigi has violated her agency relationship with the seller. - ✔✔D) Gigi has violated her
agency relationship with the seller.
✔✔All of the following statements regarding payment of an agent in a real estate
transaction is true EXCEPT
A) Payment of a firm by a buyer or seller does not create an agency relationship; the
agency agreement between the buyer or seller creates the agency relationship.
B) When a seller agrees to pay a buyer agent's firm, the payment does not
automatically create an agency relationship between the seller and the buyer agent's
firm.
C) In a buyer agency agreement, the buyer can obligate the buyer agent firm to first
seek the firm's compensation from the seller first, and then if the seller does not pay, the
buyer must pay the buyer agent firm.
D) When a seller agrees to pay a buyer agent's firm, the payment automatically creates
an agency relationship between the seller and the buyer agent's firm. - ✔✔D) When a
seller agrees to pay a buyer agent's firm, the payment automatically creates an agency
relationship between the seller and the buyer agent's firm.
✔✔All the following are considered categories of "material fact" EXCEPT
A) facts directly affecting the property.
B) facts about the property itself.
C) the seller's reasons for selling.
D) facts of special importance to a party. - ✔✔C) the seller's reasons for selling.
✔✔A licensee does not have actual knowledge of a material fact and consequently
does not disclose the fact, but a reasonably prudent licensee "should reasonably have
known" of such fact. In this case, the licensee may be guilty of which of the following if
they fail to disclose this fact to a buyer, seller, landlord, or tenant, even though the
licensee acted in good faith in the transaction.
A) Willful omission
B) Willful misrepresentation
C) Negligent misrepresentation
D) Negligent omission - ✔✔D) Negligent omission
✔✔Travis is holding an open house and Sarah stops by to view the home. Sarah starts
to tell Travis how much she would be willing to pay for the property when she makes an
offer. At this point, Travis discloses that he and his firm are representing the seller only,
then notifies Sarah of her agency options. The seller has already agreed to dual
