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North Carolina Agency — Printable Practice Pack

North Carolina state portion · NC Commission rules, provisional broker status and agency agreements · 20 questions · Answer key on the last page · agentexamcoach.com

Name: ______________________Date: ______________Score: _____ / 20
  1. 1.What is the requirement for a provisional broker in North Carolina to provide the Working with Real Estate Agents Disclosure?
    (A)At the time of the offer
    (B)At the time of the closing
    (C)At the time of the sale
    (D)At first substantial contact
  2. 2.Which of the following is a fiduciary duty owed by a broker to their client in North Carolina?
    (A)To negotiate the lowest possible price
    (B)To guarantee a successful transaction
    (C)To recommend a specific lender or attorney
    (D)To disclose all material facts known to the broker
  3. 3.In North Carolina, what is the requirement for a buyer-agency agreement before a buyer makes an offer?
    (A)It must be in writing before the offer
    (B)It can be either oral or in writing before the offer
    (C)It must be in writing at the time of the offer
    (D)It can be oral until the buyer makes an offer
  4. 4.A buyer is working with a provisional broker who has a written buyer-agency agreement. What is the broker's duty to the buyer in this situation?
    (A)To disclose all material facts about the property
    (B)To negotiate the best price for the seller
    (C)To keep all information about the buyer confidential
    (D)To only show the buyer properties listed by the broker's firm
  5. 5.A broker has a client who is selling a property. What is the broker's duty to disclose to potential buyers?
    (A)Only material facts that are known to the broker
    (B)All facts about the property, regardless of their materiality
    (C)No facts about the property, to avoid liability
    (D)Only facts that are required by law to be disclosed
  6. 6.In North Carolina, what is the requirement for disclosing material facts about a property?
    (A)The seller must disclose all known material facts in writing
    (B)The seller and the real estate agent must disclose all known material facts to the buyer
    (C)The buyer must disclose all known material facts to the seller
    (D)The real estate agent must disclose all known material facts to the buyer
  7. 7.What type of disclosure must a North Carolina broker provide to clients and customers at first substantial contact?
    (A)Working with Real Estate Agents Disclosure
    (B)Buyer Agency Agreement
    (C)Seller Listing Agreement
    (D)Dual Agency Disclosure
  8. 8.What type of agency relationship is allowed in North Carolina with written consent from both parties?
    (A)Single agency
    (B)Dual agency
    (C)Designated agency
    (D)All of the above
  9. 9.In a designated agency situation in North Carolina, which of the following is true?
    (A)The broker-in-charge is responsible for supervising all agents in the firm
    (B)The designated agent only represents the buyer
    (C)The designated agent can only work with one client at a time
    (D)The broker-in-charge must obtain written consent from all clients
  10. 10.A seller lists their property with a broker-in-charge. What is the broker-in-charge's duty to the seller regarding material facts about the property?
    (A)To disclose all known material facts to potential buyers
    (B)To disclose only those material facts that are requested by potential buyers
    (C)To disclose no material facts to potential buyers
    (D)To advise the seller to disclose material facts to potential buyers
  11. 11.What must a real estate agent disclose to a client or customer about a property?
    (A)Only the physical characteristics of the property
    (B)Only the financial characteristics of the property
    (C)No information about the property
    (D)All material facts about the property
  12. 12.What type of agency relationship is permitted in North Carolina, where one broker-in-charge designates different agents to represent different parties in the same transaction?
    (A)Dual agency
    (B)Transaction brokerage
    (C)Single agency
    (D)Designated agency
  13. 13.In North Carolina, when is the 'WORKING WITH REAL ESTATE AGENTS DISCLOSURE' given to clients?
    (A)At the closing of a transaction
    (B)When the seller lists their property
    (C)When the buyer makes an offer
    (D)At first substantial contact
  14. 14.In North Carolina, what is the purpose of the Working with Real Estate Agents Disclosure?
    (A)To secure payment for services
    (B)To establish a contract with the client
    (C)To provide information about the property
    (D)To disclose the agency relationship and the duties of the broker
  15. 15.A buyer is working with a broker to find a home. When must the buyer-agency agreement be in writing?
    (A)At the first meeting with the broker
    (B)Never, oral agreements are sufficient
    (C)When the buyer closes on a property
    (D)When the buyer makes an offer on a property
  16. 16.A buyer meets a provisional broker at an open house. What must the broker provide to the buyer at this first substantial contact?
    (A)A written buyer-agency agreement
    (B)A market analysis of the property
    (C)A copy of the listing agreement
    (D)The Working with Real Estate Agents Disclosure
  17. 17.What is a broker's duty to a customer in North Carolina?
    (A)To disclose all material facts about the property
    (B)To negotiate the best possible price for the customer
    (C)To keep all customer communications confidential
    (D)To treat the customer honestly and fairly
  18. 18.A buyer meets a provisional broker at an open house and expresses interest in purchasing the property. What must the provisional broker provide to the buyer at this initial meeting?
    (A)A written buyer-agency agreement
    (B)The seller's property disclosure statement
    (C)A copy of the listing agreement
    (D)The Working with Real Estate Agents Disclosure
  19. 19.In North Carolina, the required agency disclosure is given at first substantial contact. What is this disclosure called?
    (A)Working with Real Estate Agents Disclosure
    (B)Consumer Notice
    (C)IABS
    (D)Agency Agreement
  20. 20.What must a real estate agent in North Carolina disclose to their client?
    (A)Their commission rate
    (B)The name of the other party's agent
    (C)The client's personal information to the other party
    (D)All known material facts about the property

Answer key & explanations

  1. 1. D — A provisional broker in North Carolina must provide the Working with Real Estate Agents Disclosure at first substantial contact.
  2. 2. D — A broker owes several fiduciary duties to their client, including loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care/skill. Disclosing all material facts known to the broker is one of these duties.
  3. 3. D — In North Carolina, a buyer-agency agreement can be oral until the buyer makes an offer, at which point it must be in writing.
  4. 4. A — As an agent for the buyer, the broker has a duty to disclose all material facts about the property to the buyer.
  5. 5. A — Brokers have a duty to disclose material facts about a property to potential buyers, which includes any information that could affect the buyer's decision to purchase.
  6. 6. D — In North Carolina, the real estate agent has a duty to disclose all known material facts about the property to the buyer.
  7. 7. A — The Working with Real Estate Agents Disclosure is the required disclosure in North Carolina, given at first substantial contact, to explain the different types of agency relationships.
  8. 8. B — In North Carolina, dual agency is permitted with written consent from both the buyer and seller.
  9. 9. A — In a designated agency situation, the broker-in-charge is responsible for supervising all agents in the firm, including the designated agent.
  10. 10. A — The broker-in-charge has a duty to disclose all known material facts about the property to potential buyers, as part of their fiduciary duty to the seller.
  11. 11. D — A real estate agent must disclose all material facts about a property to clients and customers.
  12. 12. D — Designated agency is a type of agency relationship where one broker-in-charge designates different agents to represent different parties in the same transaction. This type of agency is permitted in North Carolina with written consent from the parties.
  13. 13. D — The 'WORKING WITH REAL ESTATE AGENTS DISCLOSURE' is given at first substantial contact.
  14. 14. D — The purpose of the Working with Real Estate Agents Disclosure is to disclose the agency relationship and the duties of the broker.
  15. 15. D — In North Carolina, oral buyer-agency agreements are allowed until the buyer is ready to make an offer, at which point the agreement must be in writing.
  16. 16. D — The Working with Real Estate Agents Disclosure must be provided to buyers and sellers at first substantial contact.
  17. 17. D — In North Carolina, a broker's duty to a customer is to treat the customer honestly and fairly, which includes disclosing all material facts about the property, but does not include negotiating the best possible price or keeping all customer communications confidential.
  18. 18. D — The Working with Real Estate Agents Disclosure must be provided at first substantial contact.
  19. 19. A — The required agency disclosure in North Carolina is called the 'Working with Real Estate Agents Disclosure'.
  20. 20. D — A real estate agent in North Carolina must disclose all known material facts about the property to their client.

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