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NC 302 Post Licensing exam questions with answers
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NC 302 Post Licensing exam questions with answers
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NC 302 Post Licensing exam questionswith answers
Classifying contracts: g
Express & Implied - ANSWER: ➡ Express: Bilateral, executed
g g g g gg g g g
Intentions stated (orally or written) g g g g
Implied: Unilateral, executory
g g
Inferred from conduct or actions
g g g g
Classifying contracts: g
Bilateral & Unilateral - ANSWER: ➡ Bilateral - two promises (both parties bound to do
g g g g gg g g g g g g g g g
something)
g
Unilateral - Only one party is bound
g g g g g g
Classifying Contracts: g
Executed & Executory - ANSWER: ➡ Executed - All tasks performed (After closing)
g g g g gg g g g g g g g
Executory - tasks remaining to be done (before closing)
g g g g g g g g
Statute of Frauds - ANSWER: ➡ Everything needs to be in writing
g g g g gg g g g g g g
DREAM OILS (Statute of Frauds) - ANSWER: ➡ Deeds
g g g g g g gg g
Restrictive covenants g
Easements
,Assignments
Mortgages
Options
Installment Land Contracts g g
Leases - longer than 3 yearsg g g g g
Sales Contracts g
Offer & Acceptance - ANSWER: ➡ Seller (OfferEE) & Buyer (OfferOR) -- ORs GIVE, EEs
g g g g gg g g g g g g g g g
RECEIVE
g
OfferOR may revoke or withdraw the offer anytime prior to acceptance
g g g g g g g g g g g
OfferEE can accept, reject or counter -- and when they counter, they are now the offerEE
g g g g g g g g g g g g g g g
This counter offer VOIDS original offer
g g g g g
All offers must be communicated
g g g g
Deliver all offers immediately but never later than 3 days
g g g g g g g g g
Retention of Records 58A.108 - ANSWER: ➡ A broker must provide copies of transaction
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documents:
g
- To the Firm or Sole Proprietorship (BIC) with which they are affiliated
g g g g g g g g g g g g
- Within 3 days
g g g
- Keep records for 3 years after
g g g g g g
Closing
Termination of Agency g g
Disbursement of Trust Monies g g g
WHICHEVER OCCURS LAST g g
Brokers and BIC are responsible for keeping records in a transaction
g g g g g g g g g g
These are CALENDAR days, not business days
g g g g g g g
You don't count the day it was executed/received (if received Tuesday, have to upload by
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Friday)
g
,Buyer's Rights w/ an offer - ANSWER: ➡ A buyer has the absolute right of withdraw/revoke
g g g g g g gg g g g g g g g g
Even if offer stated it would be held open longer
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The withdraw must be communicated to the other party and/or their agent
g g g g g g g g g g g
An offer is terminated any time: - ANSWER: ➡ Counter offer
g g g g g g g gg g g
Rejection by the offeree g g g
Revocation by the offeror g g g
Destruction of the property (Think hurricane) g g g g g
Death or insanity of the offeror
g g g g g
Agent Guidelines w/ offers - ANSWER: ➡ A listing broker or agent is required to respond in
g g g g g gg g g g g g g g g g g
writing that an offer was submitted if the cooperating broker who submitted the offer so
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requests
g
The listing broker or agent must respond in the affirmative unless the seller has provided
g g g g g g g g g g g g g g
written notification waiving the obligation to have the offer presented
g g g g g g g g g g
Agent has to present all offers all the way throughout the contract, up to closing
g g g g g g g g g g g g g g
Creation of a counter offer - ANSWER: ➡ Any change in an offer, no matter how small creates a
g g g g g g gg g g g g g g g g g g g
counter offer
g g
Counter offer must be accepted and communicated to the other party to create a contract
g g g g g g g g g g g g g g
Proper use of From 340-T: NCAR Response to Buyer's Offer
g g g g g g g g g
A valid contract is formed when a contract is signed, delivered and communicated - ANSWER:
g g g g g g g g g g g g g g g
➡ "Communicating an offer or an acceptance to a principal's agent is the same as
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communicating directly to the principal"
g g g g g
Beware Dual Agency is Communication is IMMEDIATE - ANSWER: ➡ When a dual agent has
g g g g g g g g gg g g g g g
been informed that the seller has accepted an offer is already considered communicated to the
g g g g g g g g g g g g g g g
buyer
g
, Methods of communicating acceptance: - ANSWER: ➡ Oral
g g g g g gg g
Personal delivery g
Mail or FedEx
g g
Electronic communication g
The mailbox rule - ANSWER: ➡ : We measure delivery from when it is SENT, not RECEIVED
g g g g gg g g g g g g g g g g g
(Page 280)
g g
Mutual Mistakes - ANSWER: ➡ Mistake of "Material Fact" - read pg. 283 - 284
g g g gg g g g g g g g g g g
May allow buyer to rescind the contract and be refunded all monies
g g g g g g g g g g g
Does NOT apply to "Mistakes of Law"
g g g g g g
Fraud & Misrepresentation - ANSWER: ➡ Fraud makes contracts voidable
g g g g gg g g g g g
Willful misrepresentations or omissions
g g g
Of material facts
g g
Make the contract voidable by the person deceived
g g g g g g g
Unfair or deceptive trade practices act: - ANSWER: ➡ A misleading opinion or false
g g g g g g g gg g g g g g
inducement
g
Fails to disclose material facts
g g g g
Misleading advertising g
Misrepresentation of the nature of a guarantee g g g g g g
This applies to real estate professionals and sellers who regularly trade in the business
g g g g g g g g g g g g g
Does not apply to an owner who does not regularly act in the business
g g g g g g g g g g g g g
Discharge of Contracts: [TEST QUESTION] p g. 290-291 - ANSWER: ➡ Release
g g g g g g g g g gg g
Novation (the substitution of a new contract in place of an old one)
g g g g g g g g g g g g
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