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Flashcards in Unit 7 Deck (38)
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31

31. A buyer-client has instructed the agent to show only properties where the seller is willing to pay the buyer agent’s commission. The agent contacts an owner selling property without the assistance of a real estate agent with the hope that the seller would be willing to pay her commission if the buyer decided to purchase the seller’s property. In order to comply with North Carolina Real Estate Commission Rules, the agent must do all of the following EXCEPT
a. obtain permission from her buyer-client in order to receive compensation from the seller.
b. disclose her agency status to the seller at initial contact.
c. convince the seller to list with her and authorize dual agency.
d. review the Working with Real Estate Agents brochure with the seller.

c. convince the seller to list with her and authorize dual agency.

32

32. The listing broker tells a prospective buyer that the seller is on the verge of bankruptcy. The broker’s actions are
a. acceptable since they may promote an offer from the buyer.
b. acceptable as long as the broker does not disclose any additional specific financial information concerning his client’s credit history.
c. unacceptable unless there are multiple offers on the property.
d. unacceptable unless the seller has authorized the broker to share the information with potential buyers.

d. unacceptable unless the seller has authorized the broker to share the information with potential buyers.

33

33. A listing agent is showing a house to a prospective buyer customer. The seller told the listing agent that during the past 10 winters, the sellers have been unable to rid the house of rodents. The seller has hidden rodent damage by the strategic placement of a large sofa. Which of the following statements is TRUE?
a. This information may be withheld since the agent never saw any evidence of infestation or damage.
b. Disclosing the information could create a fiduciary relationship with the buyer and, thereby, create an unauthorized dual agency situation.
c. Withholding the information prevents an informed buyer decision.
d. Disclosing the information violates the agency duties with the seller.

c. Withholding the information prevents an informed buyer decision.

34

34. A North Carolina provisional broker may accept compensation
a. from his employing broker.
b. directly from his consumer-principal.
c. from another licensee representing the broker.
d. all these.

a. from his employing broker.

35

35. A listing agent has an obligation to disclose to the seller
a. only offers that meet the seller’s specifications.
b. if the buyer intends to resell the property quickly for a profit.
c. the name and nationality of the purchaser.
d. the in-house commission split between the firm and the listing licensee.

b. if the buyer intends to resell the property quickly for a profit.

36

36. A real estate firm practices all legal forms of agency allowed in North Carolina. If a firm’s buyer-client is interested in buying property listed with the firm, the firm must:
a. decline to act as dual agent and refer the buyer to another firm.
b. require both clients to sign agency agreements prior to the close of the transaction.
c. disclose the agency options available and obtain written consent from both clients to act as dual agent.
d. act as a facilitator rather than a fiduciary.

c. disclose the agency options available and obtain written consent from both clients to act as dual agent.

37

37. Which of the following statements is TRUE about types of agency?
a. A property manager usually acts as a special agent of the landlord.
b. A listing agent usually acts as a general agent of the seller.
c. A real estate licensee usually acts as a general agent of an affiliated firm.
d. A buyer’s agent usually acts as a universal agent for the buyer.

c. A real estate licensee usually acts as a general agent of an affiliated firm.

38

38. Which of the following BEST describes a designated agency transaction?
a. The listing firm appointing an agent to represent the seller
b. The selling firm appointing an agent to represent the buyer
c. Some agents in the same firm representing buyers exclusively and other agents in the same firm representing sellers exclusively
d. A broker-in-charge appointing one agent to exclusively represent the seller as the client and appointing a different agent to exclusively represent the buyer as a client while the firm remains in dual agency

d. A broker-in-charge appointing one agent to exclusively represent the seller as the client and appointing a different agent to exclusively represent the buyer as a client while the firm remains in dual agency