Post Licensing 301 North Carolina Study Questions | 100% Correct Answers | Verified | Latest Update
Question 1: What are the basic duties that an agent owes a
principal under Agency Law?
Correct answer: OLDCAR or LOADS –
loyalty/confidentiality, obedience, accounting, disclosure, skill, care and diligence.
Question 2: What is the definition of a fiduciary relationship?
Correct answer: A person who acts for another in a
relationship of trust and who is obligated to act in the other’s best interests, placing the other’s interests before any self- interest.
Question 3: Does violating Agency Law also violate Real
Estate License Law?
Correct answer: Yes
Question 4: What are some possible consequences of
violating Agency Law?
Correct answer: revocation or suspension of real estate
license, civil liability, loss of commission
Question 5: Can the Real Estate Commission fine a broker for
violating Real Estate License Law?
Correct answer: No
Question 6: What are the four categories of material facts?
Give an example of each category.
Correct answer: Facts about the property itself (HVAC
system does not work), Facts that relate directly to the property (state approved plans for a four-lane bypass near the property), Facts directly affecting the principal’s ability to compete the transaction (seller is unable to convey clear title), Facts that are known to be of special importance to a party (current zoning will not permit a buyer’s intended use)
Question 7: Material fact? Death or murder of a previous
tenant on the property?
Correct answer: No
Question 8: Material fact? A convicted sex offender lives in a
neighboring property?
Correct answer: No
Question 9: Material fact? A gravesite is located on a
property?
Correct answer: Yes
Question 10: Material fact? Property is believed to be
haunted?
Correct answer: No
Question 11: Material fact? Property is located in an airport
approach flight path?
Correct answer: Yes
Question 12: Material fact? Seller is behind on their mortgage
payments?
Correct answer: No
Question 13: If a material fact is detrimental to the seller, can
the listing broker withhold it from the buyer?
Correct answer: No
Question 14: Can a broker refuse to obey a seller client’s
instruction to withhold a material fact about the property?
Correct answer: Yes
Question 15: Can a broker advise a buyer on how to take title
to the property?
Correct answer: No
Question 16: Can a listing broker disclose to a buyer how
much the seller is willing to accept for the property?