Quiz 2
Under which of the following listing agreements must a seller pay a commission to the listing company even if the seller procures the buyer?
Exclusive right to sell listing
A buyer's agent will keep 65% of her firm's earned commission split. The sales price of the property is $876,000. If the listing firm is offering a 50/50 split of the 5.5% commission to the selling firm, how much will the buyer's agent receive?
$15,658
Which of the following statements about a provisional broker (PB) is TRUE?
The PB and his/her supervising broker-in-charge are subject to disciplinary action for any actions of the PB that are in violation of Commission rules
If a NC broker acting as an agent in a real estate transaction uses a preprinted offer or sales contract form, it must
include specified information such as an adequate legal description of the property and the manner of payment for the purchase price
If a broker shows a property to a buyer-consumer who chose NOT to be represented by any type of buyer agency, after proper review by the broker of all agency choices in the Working with Real Estate Agents brochure, the buyer must
initial the "Disclosure of Seller Subagency" statement at the bottom of the brochure panel authorizing the broker to work as a seller's subagent
In NC, an oral buyer agency agreement
must include agreement on brokerage compensation and whether single or dual agency will be practiced
Under NC Real Estate Commission rules, all written agency agreements
must include an anti-discrimination clause
A broker is aware that the public road in front of er listing go scheduled to be widened to a four-lane divided highway next year. The listing agent
must volunteer the information to all prospective buyers
An offer to purchase real estate can be terminated by all of the following reasons EXCEPT
revocation by the offeror communicated to the offeree after acceptance
A NC broker is required to deliver all executed contracts to his/her clients no later than
three days after receipt by the broker
The fiduciary duties of an exclusive buyer's agent include
concealing client's confidential information
In North Carolina, a listing agreement
is required by North Carolina License Law to be written from formation
A parcel of vacant land 80 feet wide and 20 feet deep was sold for $200 per front door. How much money would an individual agent receive for a 60% share of the 10% commission earned?
$960
Which of the following statements regarding designated agency in NC is TRUE?
A non-provisional broker may be the designated agent for the seller-client and a provisional broker in the same firm may be the designated agent for the buyer-client
Which of the following would be used to include extra terms or conditions as part of a standard offer to purchase?
Addendum
Which of the following statements concerning broker compensation in NC is TRUE?
Compensation to a broker from a settlement service provider in the transaction is probably in violation of RESPA
A NC buyer's agent has found 3 properties that meet the client's detailed list of required features. Although all three properties are listed for very similar prices in the same neighborhood, a $2,000 selling bonus is offered to the selling agent on one property. Must the buyer's agent disclose the bonus offer to his/her buyer-client before writing an offer on that property?
Yes, because brokers must disclose to their principals all compensation they may receive from others
A buyer agent must disclose to the seller or the seller's agent that the broker represents the buyer
at the buyer agent's initial contact with the seller or seller's agent
The injured party in a real estate transaction with the right to a suit for specific performance is typically the
buyer
A buyer's agent owes which of the following duties to the buyer?
Performing a comparative market analysis before an offer
Which of the following situations would be considered a material fact in N?
The seller has been served with a foreclosure notice
A offer to purchase is submitted on a listing while the property owner is out of town on business. The offer is electronically submitted to the owner and the owner signs and returns the offer with no changes in terms. If the signed offer is the electronically submitted to the listing agent who calls the buyer's agent with this information, which of the following statements is TRUE?
The seller is under contract to sell his property since electronic signatures are binding
Which of the following would create legally binding acceptance of a written offer?
The seller's agent emails the buyer's agent that the seller signed the offer as written
An NCBA/NCAR 2-T offer to purchase and contract offered for use by a real estate broker
must not include a disclaimer of liability on the part of the broker
A broker advertises his listing as waterfront property. The property has a great view of the lake, but there is another lot located between the listed property and the lakeshore. The listing agent may be guilty of
willful misrepresentation
In NC, which of the following persons must an active real estate broker license in order to earn compensation?
A licensed real estate appraiser managing his own rental property plus one property owned by a friend
What duties does a broker owe to a consumer who is not the broker's principal?
Honestly, fairness, and disclosure of material facts
According to the applicable provision in the standard Offer to Purchase and Contract form jointly approved by he NC Association of REALTORS and the NC Bar Association, what happens if Buyer is unable to secure the financing described in the contract?
If the information is discovered during the due diligence period, Buyer may terminate the contract and receive a refund of any Earnest Money Deposit
How and when must a broker notify an unrepresented buyer that the broker represents the seller?
In writing, before obtaining any personal information from the buyer
Which of the following statements about a listing agreement is TRUE?
It creates a fiduciary relationship between the seller and the listing firm
In which of the following scenarios will the signed contract probably be voidable?
Seller inherited the property and is almost eighteen when he/she signs the contract
Which of he following scenarios BEST illustrates first substantial contact?
Seller states that she must relocate by the end of the year
A broker obtains an exclusive right to sell listing for her real estate company. What is the agency relationship between the owner of the listed property and all the brokers that work for the listing company?
Seller subagency
Which of the following statements regarding the NC Residential Property Disclosure Act is TRUE?
The seller must provide a complete Mineral and Oil and Gas Rights mandatory Disclosure Statements to a prospective buyer of most residential properties prior to presentation of first offer
In a transaction featuring an installment land contract
a buyer who defaults on payments may lose all rights to the property as well as all pervious payments made towards the purpose of the property
The Working with Real Estate Agents brochure
contains an acknowledgment panel that must be retained by the broker
The buyer and the seller in a failed transaction cannot agree on how to disburse the earnest money deposit being held in the listing firm's trust account. The listing firm must retain the records of this transaction for 3 years after the
date the earnest money is disbursed
A sales contract for real property may be terminated based on the
destruction of the property
The real estate contract remedy of specific performance
enforces a buyer's right to acquire the property per contract terms
An option to purchase has been created for a one hundred acre parcel of farmland. During the one-year option period, the optionee has the right to
execute the option to purchase on the terms in the option agreement
A listing taken by a real estate broker belongs to the
firm
A broker is representing the property seller. She is showing the property to a prospective buyer customer. The buyer likes the house but does not want to pay as much as the seller wants. He asks the broker is the seller would take less than the listing price. The broker knows that the seller is very anxious to sell and would probably agree to $7,000 less than the listing price. In this situation, the broker
has violated her fiduciary duties dual agent
A seller receives two offers to purchase her NC property at the same time. One offer is for full listing price but wants a delayed closing that is not in the seller's best interest. The second offer has terms that are very agreeable to the seller but offers less than full price for the property. Without any knowledge or consent of the first offeror, the listing agent contracts only the second offeror and tells them that there is a full price offer on the table and asks is they would like to increase the purchase price in their offer. Listing agent is
in violation of Commission Rules as long as his actions were at the direction of his seller client
Under the common law of agency, a real estate broker owes all of the following duties to the principal EXCEPT
novation
A broker has found a buyer for a seller's home. The buyer has indicated in writing a willingness to buy the property for $1,000 less than the asking price and has deposited $5,000 in earnest money with the broker. The seller is out of town for the weekend, and the broker has been unable to inform the seller of the signed document. At this point, the buyer has signed as
offer
In a NC firm that practices dual agency, but not designated agency, a broker may disclose confidential information about a seller-client to
other brokers in the same firm
Do not contact laws govern all the following areas EXCEPT
postal mail
A listing agent received two written offers for the same property within a few hours of each other. Both offers propose a purchase price below the listed asking price, but they vary in financing and other terms. The listing agent may
present both offers to the seller and coach the seller on possible responses
The sellers wish to include serval conditions in their counteroffer. There are no standard addenda that meet the seller's wishes. The listing agent
should strongly advise the sellers to have an attorney draft the appropriate language as an addendum to the counteroffer
A written listing agreement will e automatically terminated if the
sole practitioner broker that signed the agency agreements dies
A sales contract is contingent upon the buyer obtaining financing at terms stated in the contract within 30 days of contract formation. If the buyer is unable to secure such financing by the deadline
the buyer may terminate the contract and have the entire earnest money deposits returned to the buyer
The disclosure to prospective buyers that a listed property is located in a flood zone is only required when
the listed property is located in a federally designated flood hazard area
A seller needs $120,000 to pay off their mortgage loan and $1,000 for other closing expenses, plus he would like to net $50,000 to use to purchase his next home. If the listing firm changes a 5% listing fee, what is the minimum sales price that will meet these requirements?
$180,000
The seller of a property insists on receiving $55,000 profit from the sale of his home. The existing mortgage balances of $120,000 must be paid off at closing. The brokerage fee is 6% and here will be $2,475 in miscellaneous closing costs for the seller. For what price must the house sell, rounded to the nearest dollar, in order to meet the seller's goal?
$194,500
A provisional broker sells another firm's listing for $150,000. The commission is 6.5% of the sales price. Of this amount, 55% goes to the listing broker, and the remaining 45% belongs to the cooperating broker. If the provisional broker receives 60% of any commission that he generates for the offer, he is entitles to receive
$2,632.50
A real estate first list a residential property for $647,500. The seller agrees to pay a 6% listing commission. An agent with a different firm sells the property for a contract price of $639,000. The listing firm will pay the 2.6% commission split offered in the MLS to the selling firm. How much commission will the listing firm retain?
$21,726
A buyer's agent hand-delivers a signed offer to the listing agent with a different real estate firm. When the listing agent presents the offer to the seller in persona, the seller strikes through the proposed purchased price and enters a higher number, initials the change, signs the offer, and hands the offer back to the listing agent. The listing agent delivers the signed offer to the buyer agent's firm. The buyer's agent scans and emails the document to the buyer, pointing out the price change. The buyer initials the change and emails the document back to the buyer's agent. The buyer's agent calls to inform the listing agent that the buyer has initialed the price change, The listing agent notifies the seller later that day of the buyer's acceptance. A binding contract was created when
The buyer's agent told the listing agent that the buyer has initialed the change
A seller agrees to all of the terms in a buyer's offer except the proposed closing date. The seller changes the closing date, initials the change, and signs the offer. The listing agent promptly notifies the buyer's agent of the seller's actions. Given these facts, which of the following statements is TRUE?
The buyer's offer has been rejected, and the seller has made counteroffer
After hours of negotiating, a buyer and a seller reach an oral agreement on the terms for the purchase of the seller's home. The buyer submits a written offer with the terms of the oral agreement. Before the seller has a chance to sign the written offer, the seller dies of a heart attack. Which of the following statements is TRUE?
The buyer's offer is terminated, because the seller did not sign the offer
According to the NC Real Estate Commission's Residential Square Footage Guidelines, which of the following statements regarding "living area" is TRUE?
The ceiling height must be at least 7 feet, unless dealing with sloped ceilings
Buyer and seller have entered into a residential sales contract using the standard 2-T offer to purchase and contract form jointly approved by the NC Association of REALTORS and the NC Bar Association. Buyer wishes to terminate the contract during the due diligence period. Seller has not breached the contract and the property has not been damaged. Per the contract, which of the following monies, is any, should be refunded to the buyer?
The earnest money only
A dual agent may disclose which of the following information to one of the agent's principals without the permission of the other client?
The fact that the property in question is being re-zoned
A agent who breaches fiduciary duties may be subject to all of the following EXCEPT
Suspension of licensure by the Association of REALTORS
A listing broker mails a signed offer to his out-of-town seller. The seller electronically signs the offer as written and emails it back to the listing broker. The listing broker forwards the email with the signed offer to the buyer's agent who is affiliated with a different Realestate company. Is there a binding contract at this point in time?
Yes, receipt by the buyer's agent of the electronic document is sufficient to create a binding contract
Per the NCBA?NCAR 2-T offer to purchase and contract, if the seller commits a material breach and the buyer elects to terminate the contract, the buyer is entitles to
a refund paid earnest money, due diligence fee, and all reasonable costs of the buyer's due diligence
A necessary element of an enforceable real estate sales contract is
an agreement for exchange of things of value between contract parties
A listing agreement generally includes
an automatic termination date
an exclusive buyer's agency agreement with a firm will be automatically terminated if the
buyer and the firm agree to stop working together