North Carolina · state portion

Free North Carolina Agency practice questions

10 original questions with full explanations. 16 of the 60 scored state-portion questions (about 27%) come from this area.

1. 1

   A broker represents both the buyer and the seller in a transaction with their written consent. This is an example of

   • A. Single agency
   • B. Disclosed limited agency
   • C. Designated agency
   • D. Dual agency
   Show answer & explanation

   Answer: D

   When a broker represents both the buyer and the seller with their written consent, it is an example of dual agency.

2. 2

   What type of agency relationship is established when a broker designates an agent to represent the buyer and another agent to represent the seller?

   • A. Single agency
   • B. Dual agency
   • C. No agency
   • D. Designated agency
   Show answer & explanation

   Answer: D

   In North Carolina, designated agency is a type of agency relationship where a broker designates an agent to represent the buyer and another agent to represent the seller, with written consent from both parties.

3. 3

   In North Carolina, which of the following is a fiduciary duty owed by a real estate agent to their client?

   • A. To sell the property for the highest price possible
   • B. To disclose all known facts about the property
   • C. To recommend a particular lender or attorney
   • D. To keep all information about the client confidential
   Show answer & explanation

   Answer: D

   In North Carolina, a real estate agent owes a fiduciary duty of confidentiality to their client, which means keeping all information about the client confidential.

4. 4

   What is the purpose of the 'WORKING WITH REAL ESTATE AGENTS DISCLOSURE' in North Carolina?

   • A. To create a contractual relationship between the agent and the client
   • B. To establish the terms of the sale
   • C. To disclose the agent's commission rate
   • D. To inform buyers and sellers about the different types of agency relationships
   Show answer & explanation

   Answer: D

   The 'WORKING WITH REAL ESTATE AGENTS DISCLOSURE' is a required disclosure in North Carolina that informs buyers and sellers about the different types of agency relationships and the duties owed to clients and customers.

5. 5

   A broker has a duty of loyalty to their client. What does this duty require the broker to do?

   • A. To disclose all material facts about the property to the customer
   • B. To negotiate the best price for the customer
   • C. To keep all information about the client confidential
   • D. To act in the best interest of the client
   Show answer & explanation

   Answer: D

   The duty of loyalty requires the broker to act in the best interest of the client, which means putting the client's interests above the broker's own interests and the interests of other parties.

6. 6

   In a designated agency relationship, which of the following is true?

   • A. The broker represents only one party in the transaction
   • B. The broker represents both parties in the transaction
   • C. The broker is exempt from disclosing material facts about the property
   • D. The broker designates an agent to represent the buyer and another agent to represent the seller
   Show answer & explanation

   Answer: D

   In North Carolina, designated agency occurs when a broker designates an agent to represent the buyer and another agent to represent the seller, with the written consent of both parties.

7. 7

   What is the requirement for a buyer-agency agreement in North Carolina when the buyer is ready to make an offer?

   • A. It must be in writing
   • B. It can be oral or written
   • C. It can be an oral agreement
   • D. It is not required
   Show answer & explanation

   Answer: A

   In North Carolina, a buyer-agency agreement must be in writing when the buyer is ready to make an offer.

8. 8

   In a designated agency relationship, the broker-in-charge designates an agent to represent the

   • A. Buyer only
   • B. Seller only
   • C. Both the buyer and the seller
   • D. Either the buyer or the seller, but not both
   Show answer & explanation

   Answer: D

   In a designated agency relationship, the broker-in-charge designates an agent to represent either the buyer or the seller, but not both.

9. 9

   What is required for a dual agency relationship in North Carolina?

   • A. Oral consent from the client
   • B. No disclosure is required
   • C. A separate brokerage firm for each client
   • D. Written consent from the client
   Show answer & explanation

   Answer: D

   In North Carolina, dual agency is permitted with written consent from the client.

10. 10

    A broker is working with a buyer who wants to purchase a property. The broker also represents the seller of that property. What type of agency relationship is this, and what is required for it to be valid?

    • A. Single agency, which requires no written consent
    • B. Transaction brokerage, which is not allowed in North Carolina
    • C. Designated agency, which requires no written consent
    • D. Dual agency, which requires written consent from both parties
    Show answer & explanation

    Answer: D

    This is an example of dual agency, where the broker represents both the buyer and the seller. In North Carolina, dual agency is allowed with written consent from both parties.