Brokerage Relationships: Laws and Practices Flashcards
An agent in North Carolina has a listing of a property now owned by the bank. The agent is told by the neighbors that the home is haunted. The agent should
A)
answer inquiries honestly if asked about ghosts by prospects or agents.
B)
refuse to answer.
C)
spend the night there to see if there are ghosts.
D)
bring in a priest for more information.
A)
answer inquiries honestly if asked about ghosts by prospects or agents.
The agent does not have to discover and disclose if the home is haunted, nor is the agent responsible for exorcising spirits.
The North Carolina Real Estate Commission’s Working with Real Estate Agents brochure is to be given to
A)
buyers and sellers at first substantial contact.
B)
sellers at time of the offer.
C)
buyers at time of closing.
D)
sellers at time of closing.
A)
buyers and sellers at first substantial contact.
The mandatory North Carolina Real Estate Commission agency brochure is to be given at the first substantial contact with the prospect.
A licensee in North Carolina can be disciplined for
A)
sending in renewal fees late.
B)
all of these.
C)
failing to disclose a material fact.
D)
not taking continuing education.
C)
failing to disclose a material fact.
The others do not require disciplinary action.
A broker has a listing on a house that contains a provision that the house is to be sold in an “as is” condition. The broker learns of a major hidden defect in the property. When showing the house to a prospective purchaser, the broker should
A)
point out only that the house will be sold in an “as is” condition.
B)
inform the buyer that the seller has disclosed no defects.
C)
advise the buyer of the defect.
D)
mention the defect to the buyer only if asked.
C)
advise the buyer of the defect
The use of the words “as is” does not protect the seller or the broker from liability for misrepresentations owing to concealment of material defects that cannot be easily observed. In essence, this phrase informs the buyer that the seller intends to make no repairs to the obvious problems with the structure.
Designated agency can be practiced within the same firm in all of the following situations EXCEPT
A)
a provisional broker working with another provisional broker in the office.
B)
a broker working with another broker in the office.
C)
a provisional broker working with a broker in the office.
D)
a broker-in-charge working with a provisional broker in the office.
D)
a broker-in-charge working with a provisional broker in the office
The designated agency rule clearly states that the broker-in-charge of the firm cannot practice designated agency with a provisional broker within the firm. The other situations are permissible.
Designated agency in North Carolina is
A)
is a decision of the individual agents in the office.
B)
not allowed in North Carolina.
C)
mandatory in North Carolina.
D)
a form of dual agency.
D)
a form of dual agency.
Designated agency is a form of dual agency. Designated agency is optional. The broker-in-charge decides whether the firm will practice designated agency.
A North Carolina listing agent lists a home with three bedrooms and a den. The listing agent decides to call the den a bedroom, although there are no closets. The agent advertises the house as a four-bedroom home. A buyer’s agent is showing this home to a potential buyer. The buyer’s agent looks up the tax records and sees it is shown as a three-bedroom home. The buyer’s agent speculates that the listing agent is calling the den a bedroom. The den is small but might work for a baby’s nursery. The buyer’s agent shows the home as a four bedroom. Has either agent done something wrong?
A)
No, a room can be used however a buyer chooses.
B)
Yes, the buyer’s agent should have questioned the information.
C)
Both the listing agent and the buyer’s agent are wrong.
D)
Yes, the listing agent is wrong.
C)
Both the listing agent and the buyer’s agent are wrong.
The listing agent listed it incorrectly, and the buyer’s agent should have questioned it.
The broker is showing property in Jacksonville, North Carolina. The broker has an oral buyer agency agreement. The broker’s buyer clients want to see one of the broker’s firm’s listings. The buyers have agreed to dual agency. When must they sign an agency agreement pertaining to their consent to dual agency?
A)
Before they make an offer
B)
At the time they put their agency agreement in writing
C)
Before they see the property
D)
No later than closing
B)
At the time they put their agency agreement in writing
In North Carolina, a consent to dual agency must be in writing when the agency agreement is put into writing. In this example, it is no later than when the first offer is made. If the broker gets the buyer agency agreement signed before then, the acknowledgment of dual agency needs to be done at that time. If the broker started with a signed buyer agency agreement but without permission for dual agency, then the broker would need to get that in writing before undertaking dual agency, (showing the property).
Provisional brokers may accept compensation of their predetermined share of the commission from
A)
a cooperating broker.
B)
their employing broker.
C)
the owner of the property.
D)
the multiple listing service.
B)
their employing broker
Provisional brokers can receive money only from their employing brokers; they cannot take even a special bonus directly from a principal.
A broker who has completed all of her post-licensing classes is showing a property listed by her broker-in-charge. Which of the following agency options are available in this scenario?
A)
Both agents becoming transaction brokers, representing neither party
B)
Exclusive buyer representation, if the firm practices designated agency
C)
Subagency of the buyer by the broker-in-charge
D)
Nonexclusive buyer representation, if the firm practices dual agency
B)
Exclusive buyer representation, if the firm practices designated agency
A full broker may be designated opposite her broker-in-charge.
If a first substantial contact occurs over the internet, what is the recommended procedure for proceeding to assist the consumer and make sure proper disclosure is given?
A)
Ask the consumer whether he has a house to sell before he can buy
B)
Explain that the market is quite active and that he will need to move quickly when you find him the right house
C)
First ask the consumer how much he is qualified for to assist in finding the right houses and then send the Working with Real Estate Agents brochure
D)
Email and then explain the Working with Real Estate Agents brochure, and ask whether he has representation before asking any qualifying or confidential questions
D)
Email and then explain the Working with Real Estate Agents brochure, and ask whether he has representation before asking any qualifying or confidential questions
The rule requires presentation of the brochure before providing any real estate services to the public or asking any questions that might harm consumers in a negotiating position. This rule applies no matter what venue the contact.
In North Carolina, the company agency policy is determined by the
A)
North Carolina Real Estate Commission.
B)
individual agents.
C)
broker-in-charge.
D)
client.
C)
broker-in-charge.
Each firm has a company policy. The broker-in-charge of the firm decides how the firm will handle agency policies and procedures. Some firms may set policy and procedures in conjunction with their agent’s wishes, but it is the broker-in-charge who is ultimately responsible for those policies and procedures.
