Test Questions - AW Flashcards
When should the Working With Real Estate Agency brochure be used?
At first substantial contact - when the customer shares personal, financial, motivational information. It turns the conversation from “what” to “why”.
What lien takes priority over others?
Real Property Taxation “ad valorem” (according to value).
**Unless - in the event of a foreclosure.
What do you do when you suspect an encroachment on your property?
Talk to your neighbor and get a survey.
General rules of Dual Agency Disclosure?
Must be in writing.
Must be at the formation of a relationship.
Consent should be obtained BEFORE showing a property your firm has listed.
How is out-of-state compensation handled?
Commission is handled firm to firm, not between licensees. Referrals across state lines are permitted.
What are the advertising rules in NC?
*Yard signs require seller permission.
BIC/firm must approve.
Must include name or firm.
What are the 3 D’s of Disclosure? What does a disclosure agreement need to accomplish?
Disclose. Discuss. Decide.
What documents are required to be in writing under the Conner Act? What type of document is NOT included in the Conner Act but is covered under the NC Statue of Frauds?
DREAMOIL - Deeds, Restrictive Covenants, Easements, Assignments, Mortgages, Options, Installment Land Contracts, Leases 3+ years.
Sales/Purchase Contracts are not covered by Conner Act.
What must be included on the License Pocket Card?
- Must be signed & contain license #, expiration date and license type.
- Is a DEMAND DOCUMENT.
What are the 4 license statuses?
Provisional.
Broker.
BIC Eligible.
BIC.
What is the difference between what the NCREC rules cover vs. the Statute of Frauds?
NCREC rules cover agency agreements (must be in writing).
Statute of Frauds covers DREAMOILS (not Agency)
What are the penalties for violating the Do Not Call rules and who enforces them?
The FTC (Federal Trade Commission) enforces fines federally for $11,000 per call.
NC govt fines $500 for first violation, $1,000 for second, $5,000 after that.
What are the exceptions to the Do Not Call rules?
**People you did business with in the last 18 months.
Charities, Campaigns, Collections Agencies.
When responding to an inquiry from the last 90 days.
FSBO if you have a bona fide buyer.
How often must you re-check the Do Not Call registry?
Every 31 (thirty-one, not thirty), days.
Who would be considered an Incompetent Party in a contract? Are they bound to an agreement?
Minors (under 18) and those lacking Mental Capacity (drunk, high, disabled, under duress).
Contracts are voidable by incompetent party.
How long can brokers hold onto offers before sharing them with their seller clients?
They must share them IMMEDIATELY, but never longer than 3 days, even if already under contract.
How does the death of a licensee impact a licensing agreement?
No impact, because the agency is with the firm, not the individual licensee.
What type of listing agreement guarantees commission for a sold home? What is the most common type of listing agreement?
Exclusive Right to Sell.
It is the most common.
Who pays the Excise Tax and how is it calculated?
Seller at time of sale.
Round up to nearest $500 and divide by $500.
Not on gift deeds.
What is Color of Title?
Reasonable belief of ownership of a property.
What is the period of time of Adverse Possession in NC?
7 years with Color of Title, 20 years without it.
What is the purpose of a deed?
A deed is a conveyance document. It conveys real property from one party to another.
Who is exempt from providing the Mineral, Oil and Gas disclosure?
- **Vacant lots.
- *New home construction must provide it.
- Buyer must get PRIOR TO OFFER.
What is the process of enforcing Eminent Domain?
Condemnation.
Condemnation is the process, Eminent Domain is the right.