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301 NC POST LICENSING EXAM
ACTUAL EXAM 2024 | 380
QUESTIONS AND CORRECT
ANSWERS | ALREADY GRADED
A+ | LATEST VERSION
Atala is driving by a property that is listed for sale by Best Homes Realty and calls the telephone number on the for-sale sign. LaTosha answers the phone and Atala asks what the price of the property is. At this time, does LaTosha have to present the brochure "Working with Real Estate Agents"? A) No, because first substantial contact has not occurred. B) Yes, because first substantial contact has occurred. C) Yes, because LaTosha must present the brochure at initial contact. D) No, because LaTosha is not required to present the brochure over the phone. ----- CORRECT ANSWER----------------A) No, because first substantial contact has not occurred. The Working with Real Estate Agents brochure provides the consumer with all the following information EXCEPT A) useful information about the various services real estate agents can provide buyers and sellers. B) it will indicate that you must choose a firm for representation and that you may never represent yourself. C) the various types of agency relationships that may be available to a consumer. D) it will help explain how real estate agents are paid. -----CORRECT ANSWER----------- -----B) it will indicate that you must choose a firm for representation and that you may never represent yourself. The Working with Real Estate Agents brochure explains to both buyers and sellers the firm acting as a dual agent. In dual agency, the brochure states all the following EXCEPT A) if dual agency has not already been agreed upon by either the buyer or the seller and later they want to agree to dual agency, the firm can amend the agency agreement.
B) it will be difficult for a dual agent to advance the interests of both buyer and seller. Nevertheless, a dual agent must treat buyers and sellers fairly and equally. The firm's loyalty is divided between parties with competing interests. C) although the dual agent owes the buyer and seller the same duties, they cannot prohibit dual agents from divulging certain confidential information about them to the other party. D) although the dual agent owes the buyer and seller the same duties, they can prohibit dual agents from divulging certain confidential information about them to -----CORRECT ANSWER----------------C) although the dual agent owes the buyer and seller the same duties, they cannot prohibit dual agents from divulging certain confidential information about them to the other party. Brokers must understand that before they can assist a prospective buyer with locating a property, the broker must have A) a disclosure in writing to the prospective buyer that the broker will be working with the buyer as a seller's agent or subagent. B) either an express written buyer-agency agreement or an express oral buyer-agency agreement. C) an express oral disclosure to the prospective buyer that the broker will be working with the buyer as a seller's agent or subagent. D) either an express oral or written buyer-agency agreement with the buyer or disclosed in writing to the prospective buyer that the broker will be working with the buyer as a seller's agent or subagent. -----CORRECT ANSWER----------------D) either an express oral or written buyer-agency agreement with the buyer or disclosed in writing to the prospective buyer that the broker will be working with the buyer as a seller's agent or subagent. Which of the following statements is FALSE regarding buyer and tenant representation agreements? A) When a broker wants to bind a buyer or tenant or to restrict the buyer's or tenant's right to work with other agents, then the agreement must be in writing. B) A broker shall not continue to represent a buyer or tenant without a written, signed agreement when such agreement is required by Commission rules. C) The broker can have an express oral agreement with a buyer or tenant but it must be nonexclusive and cannot have a time period associated with the oral agreement. D) A broker can continue to represent a buyer or tenant with an express oral representation agreement up until closing. At that time, the representation agreement will need to be reduced to writing. -----CORRECT ANSWER----------------D) A broker can continue to represent a buyer or tenant with an express oral representation agreement up until closing. At that time, the representation agreement will need to be reduced to writing.
B) "Junk Fax" laws and rules C) Do Not Email Registry Act D) CAN-SPAM Act -----CORRECT ANSWER----------------D) CAN-SPAM Act Katherine, a new real estate broker and REALTOR®, decided to walk around her neighborhood to see if anyone was interested in selling their home. Several of the neighbors have their home listed for sale. If Katherine approached the neighbors who currently have their homes listed for sale with other companies who are members of the REALTOR® association, she would be in violation of which of the following? A) REALTOR® Commission Rules B) REALTOR® Code of Ethics C) North Carolina Fair Housing Laws D) NCREC Rules -----CORRECT ANSWER----------------B) REALTOR® Code of Ethics Zelda, a real estate broker, is planning on sending out an email to all her neighbors to solicit their listing. Which of the following subject lines would be okay for Zelda to use? A) "Let's get together for lunch!" B) "Have you seen the latest neighborhood newsletter?" C) "Hey, I haven't seen you in a while." D) "I would like to meet soon to talk about listing your home." -----CORRECT ANSWER- ---------------D) "I would like to meet soon to talk about listing your home." All of the following must be considered in ensuring compliance with the CAN-SPAM Act EXCEPT A) the message must not be identified as advertisement. B) the header information cannot be false or misleading. C) the subject line cannot be deceptive. D) the message must include a valid, physical postal address. -----CORRECT ANSWER----------------A) the message must not be identified as advertisement. In Beautiful City, the top five brokerage firms got together to discuss how the real estate market is doing after the recent recession. Some of the firms shared that their profits were down as compared to years past. They all decided to raise their fees for listing properties and that way they could all increase profits for the upcoming year. This would be an example of which of the following? A) Price fixing B) Unfair competitive practices C) Set pricing
D) Boycotting -----CORRECT ANSWER----------------A) Price fixing All of the following topics are okay to discuss at a local REALTOR® association meeting EXCEPT A) planning a tech fair for all members. B) raising money and gifts for the holiday season. C) offering computer training for all members. D) setting fees that all affiliated members must charge consumers. - ----CORRECT ANSWER----------------D) setting fees that all affiliated members must charge consumers. Green Acres Realty has been in business for many years. A new company, For Sellers Only, has been charging much less than Green Acres Realty charges to list and sell homes. At a recent company meeting, the owner of Green Acres Realty instructed their agents not to show any listings that were being sold by For Sellers Only. Which of the following statements is MOST likely true? A) Such conduct would likely be a boycotting violation under the Sherman Antitrust Act. B) Such conduct is considered an acceptable and normal business practice. C) Such conduct would be considered illegal steering. D) Such conduct is legal because Green Acres Realty has the right as a brokerage firm to choose the companies with which it wants to work. -----CORRECT ANSWER----------- -----A) Such conduct would likely be a boycotting violation under the Sherman Antitrust Act. Rico, a broker with Green Acres Realty, just had a listing go under contract and he wants to send out an email to all the neighbors telling them the good news. When he sends out the "just sold" email, he needs to consider which of the following laws or rules? A) CAN-SPAM Act B) Do Not Email Registry Act C) Do Not Call Registry Act D) "Junk Fax" laws and rules -----CORRECT ANSWER----------------A) CAN-SPAM Act Marissa, a broker with Green Acres Realty, wants to call homeowners who live in the Bradford Luxury Homes neighborhood to solicit their listing with her firm. Which of the following is exempt from checking the Do Not Call Registry? A) For Sale by Owner
C) Samuel cannot reach out to the seller because he cannot solicit the business of a property owner who has an active exclusive listing. D) Samuel can speak to the seller at a neighborhood party and ask them if they are interested in listing with his firm. This way he would not be violating the Do Not Call laws and rules. -----CORRECT ANSWER----------------C) Samuel cannot reach out to the seller because he cannot solicit the business of a property owner who has an active exclusive listing. The seller's deed will help determine if there are any liens against the property. ----- CORRECT ANSWER----------------False The Residential Property Disclosure Act requires a listing agent to provide the seller with the appropriate disclosure form and to help the seller in proper completion of the form. -----CORRECT ANSWER----------------False Additional duties of the listing agent in connection with the Residential Property Disclosure Act include all the following EXCEPT A) assist the seller in assessing the property by gathering property data. B) explain to the seller that a broker is not required to disclose material facts about the property if the seller chooses to answer all the questions "no representation." C) identify items of possible concern and review with the seller their options for addressing such items. D) provide the seller with copies of both Residential Property and Owners' Association Disclosure Statement and the Mineral and Oil and Gas Rights Disclosure Statement. ----
- CORRECT ANSWER----------------B) explain to the seller that a broker is not required to disclose material facts about the property if the seller chooses to answer all the questions "no representation." Deidra is meeting with a seller to discuss listing their property for sale. All of the following will need to be accomplished at this prelisting meeting EXCEPT A) inspect the property and verify information. B) measure the lot to determine square footage. C) explain agency relationship and company policy/services. D) assist the seller with various disclosure forms. -----CORRECT ANSWER---------------- B) measure the lot to determine square footage.
Boris is gathering data at the prelisting meeting regarding the acreage of the lot. Which of the following statements is TRUE regarding how Boris will determine the acreage? A) Boris can obtain the acreage from the seller's deed. B) Boris needs to hire a surveyor and have the acreage determined. C) Boris needs to measure the lot and calculate the acreage. D) Boris needs to ask the seller to hire a surveyor and have the acreage determined. --- --CORRECT ANSWER----------------A) Boris can obtain the acreage from the seller's deed. The North Carolina Real Estate Commission (NCREC) suggests for real estate agents to do all the following when meeting with the seller EXCEPT A) remember to meet with the seller in a neutral location. B) review the Commission's Safety Guide for helpful tips. C) remember to take the appropriate safety precautions during any meeting with prospective sellers. D) remember to take the appropriate safety precautions before any meeting with prospective sellers. -----CORRECT ANSWER----------------A) remember to meet with the seller in a neutral location. An agent's duties to third parties include all the following EXCEPT A) fairness. B) obedience. C) disclosure of material fact. D) honesty. -----CORRECT ANSWER----------------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 -----CORRECT ANSWER----------------C) Austin must disclose that the hot water heater is not working because it is a material fact.
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 -----CORRECT ANSWER----------------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 -----CORRECT ANSWER----------------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 -----CORRECT ANSWER----------------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. -----CORRECT ANSWER----------------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. -----CORRECT ANSWER----------------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 -----CORRECT ANSWER----------------A) Making false promises Who is required to disclose material facts? A) Sellers and listing agents B) Sellers and buyers
CORRECT ANSWER----------------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. -----CORRECT ANSWER----------------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. -----CORRECT ANSWER----------------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. -----CORRECT ANSWER----------------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 -----CORRECT ANSWER----------------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. -----CORRECT ANSWER----------------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. -----CORRECT ANSWER---- ------------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. -----CORRECT ANSWER----------------D) When a seller agrees to pay a buyer agent's firm, the payment
B) the broker can represent the buyer or offer to represent the buyer as long as the broker does not have a conflict of interest. C) the broker cannot represent the buyer or offer to represent the buyer unless they have permission from their broker-in-charge. D) the broker cannot represent a buyer or offer to represent a buyer in the purchase of a property the broker has an ownership interest in. -----CORRECT ANSWER---------------- D) the broker cannot represent a buyer or offer to represent a buyer in the purchase of a property the broker has an ownership interest in. Who decides whether a listing firm will cooperate with other firms to procure a buyer for the property? A) Buyer-agent firm B) Listing firm C) Buyer D) Seller -----CORRECT ANSWER----------------D) Seller Which of the following statements BEST describes the agency options available for real estate firms? A) Seller agency, buyer agency, dual agency, and a form of dual agency called designated agency B) Unintentional dual agency, seller agency, and buyer agency C) Dual agency, intentional undisclosed dual agency, and unintentional dual agency D) Intentional undisclosed dual agency, seller agency, and buyer agency ----- CORRECT ANSWER----------------A) Seller agency, buyer agency, dual agency, and a form of dual agency called designated agency Best Homes Realty was hired by a buyer to represent them in purchasing a property. The buyer wanted to have exclusive representation at all times. What type of agency would BEST describe the relationship between Best Homes Realty and the buyer? A) Buyer agency B) Dual agency C) Nonagency D) Seller agency -----CORRECT ANSWER----------------A) Buyer agency Dream Homes Realty is showing a buyer client a property listed with Dream Homes Realty. According to licensing law, which of the following statements is TRUE? A) Dream Homes Realty only needs to get informed consent from the seller prior to showing the property.
B) Dream Homes Realty only needs to get informed consent prior to showing the property if the buyer ends up making an offer. C) Dream Homes Realty will need informed consent of both principals. D) Dream Homes Realty does not need informed consent of both principals. ----- CORRECT ANSWER----------------C) Dream Homes Realty will need informed consent of both principals. A property is listed for sale with one firm and the buyer of that property is procured by a different firm. This type of transaction is BEST described as A) in-house sale. B) single agency sale. C) dual agency sale. D) cooperating sale. -----CORRECT ANSWER----------------D) cooperating sale. According to North Carolina Real Estate Commission rules regarding a broker representing a buyer or offering to represent a buyer in a property the broker has an ownership interest is A) illegal because the buyer would be getting all the fiduciary duties from the owner- broker. B) illegal because the broker has an obvious conflict of interest. C) legal because the buyer is allowed to choose the type of agency representation they would like. D) legal because the broker can represent the interest of the buyer and their own interest at the same time. -----CORRECT ANSWER----------------B) illegal because the broker has an obvious conflict of interest. Which of the following statements are TRUE regarding the different agency arrangements possible when firms are cooperating in a real estate transaction? A) The cooperating or selling broker who procures the buyer may be operating as the agent of the buyer or the subagent of the seller. B) The cooperating or selling broker who procures the buyer is the same firm that is representing the seller. C) The cooperating or selling broker is representing the seller as a seller subagent. D) The cooperating or selling broker is representing the buyer as a buyer agent. ----- CORRECT ANSWER----------------A) The cooperating or selling broker who procures the buyer may be operating as the agent of the buyer or the subagent of the seller.
When the buyer or seller signs the Working With Real Estate Agent's disclosure form, they are entering into an agency agreement with the firm. -----CORRECT ANSWER------ ----------False The agent checks the appropriate blanks for the agency options, not the buyer and seller. -----CORRECT ANSWER----------------True Before a licensee in North Carolina provides any brokerage services to a buyer, the licensee must review the information in the Working with Real Estate Agents brochure. - ----CORRECT ANSWER----------------True Regarding agency disclosure, informed consent means an affirmative answer is required. -----CORRECT ANSWER----------------True First substantial contact is the point in time when the broker and consumer first meet face to face. -----CORRECT ANSWER----------------False At what point in the meeting with a seller can the broker provide any brokerage services to the seller? A) At initial contact B) At first substantial contact C) When the seller signs the acknowledgement panel on the agency disclosure brochure D) When the seller signs a listing agreement with the brokerage firm -----CORRECT ANSWER----------------D) When the seller signs a listing agreement with the brokerage firm Marcus, a broker with Best Team Realty, is meeting with Naomi about listing her property for sale. At what point in the relationship do they need to reduce their representation agreement to writing? A) At the time when Marcus and Naomi first meet B) At the time when Naomi shares the motivation for her wanting to sell her home C) Up until an offer is made on the property
D) At the time when Marcus and Naomi form their agency relationship -----CORRECT ANSWER----------------D) At the time when Marcus and Naomi form their agency relationship When first substantial contact with a prospective buyer or seller occurs by telephone or other electronic means that make it impractical to give the person the written brochure, the broker is required to do which of the following? A) At the earliest opportunity but no later than seven days from the date of first substantial contact, mail, or transmit a copy of the brochure to the consumer and review it with them at the earliest opportunity. B) The broker must cease all communication with the consumer until they can meet in person with the broker to review the brochure. C) The broker must remain neutral and only discuss material facts about properties until the consumer can meet with the broker in person to discuss the brochure. D) At the earliest opportunity but no later than three days from the date of first substantial contact, mail, or transmit a copy of the brochure to the consumer and review it with them at the -----CORRECT ANSWER----------------D) At the earliest opportunity but no later than three days from the date of first substantial contact, mail, or transmit a copy of the brochure to the consumer and review it with them at the earliest opportunity. Carlos calls a real estate office to obtain a price of a property and indicates that he would like to buy the property since he needs to be moved in and starting his new job within the month. At this time, the broker presents the information in the "Working with Real Estate Agents" brochure. All of the following should occur EXCEPT A) the broker needs to inform Carlos to not reveal any confidential or personal information to any broker until he decides who to hire as his agent. B) at the earliest opportunity, the broker needs to transmit to Carlos a copy of the brochure. C) the broker needs to contact Carlos and review the brochure again once Carlos has a copy. D) the broker has seven days to transmit a copy of the brochure to Carlos. ----- CORRECT ANSWER----------------D) the broker has seven days to transmit a copy of the brochure to Carlos. At the prelisting meeting, the broker needs to discuss the brokerage fee. What does the broker need to determine prior to attending the prelisting meeting regarding the firm's fee? A) If the firm has come to an agreement with other firms about what the standard fee will be in the area
