CH7: NC Real Estate Exam Practice Questions | Brokerage Relationships Flashcards
The employment authority of the listing agreement:
A. Binds the broker to the best interest of the seller
B. Gives the broker the opportunity to screen offers for the seller
C. Gives the broker the authority to screen offers for the seller
D. Authorizes the broker to reject any offers that the broker feels is unacceptable
A. Binds the broker to the best interest of the seller
A contract in which a property owner employs a broker to market her property creates an agency relationship between which of the following:
A. Buyer and seller
B. Buyer and broker
C. Broker and Seller
D. Broker, seller, and buyer
C. Broker and Seller
A typical listing contract is a form of:
A. Universal agency
B. General Agency
C. Special Agency
D. Free Agency
C. Special Agency
Which of the following is NOT an agency relationship:
A. The relationship between a sales associate and the broker with whom the associate is associated
B. The relationship between a listing broker and a cooperating broker acting as a subagent of the seller
C. The relationship between a seller’s agent and a buyer’s agent
D. The relationship between a seller and the listing agent
C. The relationship between a seller’s agent and a buyer’s agent
An agent’s duties to the principal include all of the following EXCEPT:
A. Loyalty
B. Accountability
C. Obedience
D. Legal Advice
D. Legal Advice
Which of the following must be disclosed to a buyer/customer by the listing agent:
A. the reason why the seller needs to sell quickly
B. The death of the previous occupant from AIDS
C. Only the material facts the seller has authorized the agent to disclose
D. All material facts including those detrimental to the seller
D. All material facts including those detrimental to the seller
A broker should present:
a. All offers even if the property is currently under contract to be sold
b. Only those offers that appear to be in the seller’s best interest
c. Only those offers the broker knows have been properly pre-qualified for the mortgage
d. Only those offers that are for more money than the seller has indicated as his minimum for consideration
a. All offers even if the property is currently under contract to be sold
A broker is not held liable for misrepresentation or omission of material fact when:
a. the broker fails to disclose a defect he reasonably should have known
b. the broker who does not know the answer to the buyer’s question, answers without regard for the facts of the situation
c. the misrepresentation or omission was made to a buyer the broker did not represent
d. the broker was not aware of the misstatement and there was no he reasonably could have been expected to know
d. the broker was not aware of the misstatement and there was no he reasonably could have been expected to know
Misrepresentations occur when:
a. the party making a false representation knows it to be false
b. the party making the false representation does not know if the statement s true or false but should have known
c. the party making the false representation makes no effort to determine if it is true
d. all of the above
d. all of the above
A listing broker has the duty to disclose to the buyer/customer
a. the amount of the commission
b. the seller’s financial status
c. the seller’s reason for selling
d. structural defects
d. structural defects
The Working with Real Estate Agent brochure:
a. must be presented at first substantial contact
b. has the same legal weight as the listing or buyer’s agency contract
c. should not be used for the customer desires oral buyer agency
d. should be presented at the same time as the Offer to Purchase
a. must be presented at first substantial contact
Designated agency is permitted:
a. only when the designated agents work within the same office
b. as long as the designated agent does not learn any confidential info
c. when the listing agent is also the buyer agent and has the written consent of both parties
d. if the designated agent is not directly supervised by the other designated agent
d. if the designated agent is not directly supervised by the other designated agent
Which of the following statements is true about the Residential Property Act?
a. the act relieves agents of the responsibility to discover and disclose material facts regarding a property
b. once a seller has completed the disclosure statement, he is under no obligation to amend the statement if the condition of the property changes
c. a seller of residential property who does not complete the Residential Property Disclosure Statement may be fined $500
d. a disclosure statement should be provided to the buyer no later than the time at which an offer to purchase and contract is signed by the buyer
d. a disclosure statement should be provided to the buyer no later than the time at which an offer to purchase and contract is signed by the buyer
The Residential Property owners and Disclosure Statement (RPOADS) form must be provided to purchasers in which of the following transactions:
a. transaction where the purchaser already occupies the property
b. transaction where the parties agree to exempt each other from compliance
c. new construction never occupied
d. property purchased where the buyer will not be the new occupant
d. property purchased where the buyer will not be the new occupant
Which of the following statements is true concerning designated dual agency?
a. a BIC can be designated dual agent of the other agent is a provisional broker under his direct supervision
b. a broker cannot be appointed as a designated dual agent if the broker has prior knowledge of confidential info about the other party to the transaction
c. only the BIC can serve as a designated agent for both parties
d. there is no provision that allows for an oral designated dual agency to exist
a. a BIC can be designated dual agent of the other agent is a provisional broker under his direct supervision
