Superior Real Estate School: Study for Retake Pre-Licensing

Superior Real Estate School: Study for Retake Pre-Licensing

Course Exam | 65 Questions and Answers(A+ Solution guide) 2024

Designated agency in North Carolina is considered:

• A form of dual agency II. Mandatory if you practice dual agency
• I only
• II only
• Both I and II
• Neither I nor II - Correct Answer A. I only

Designated agency can be practiced:

• Between two firms II. Between a broker-in-charge and a provisional broker licensee in their office
• I only
• II only
• Both I and II
• Neither I nor II - Correct Answer D. Neither I nor II

Under the general principles of agency, when a licensee is acting on behalf of a client and acts improperly who is liable for the acts of the licensee?

• only the client
• only the licensee and the broker-in-charge
• only the client and the licensee
• the client, the licensee, the firm and or the broker-in-charge - Correct Answer D. the client, the

licensee, the firm and or the broker-in-charge A disclosure of agency status should be made by a buyer's agent to the seller: 1 / 3

• With a written confirmation in the offer to purchase and contract ll. At the initial contact with the

seller's agent, orally or in writing

• l only
• ll only
• Both l and ll
• Neither l nor ll - Correct Answer C. Both l and ll

Which of the following would be dual agency?

• a broker-in-charge assisting a buyer client in the purchase of property that was listed by a provisional

broker of another firm

• a provisional broker and a broker licensee from firms that are cooperating in a transaction
• a firm that represents buyers and sellers
• a broker having a buyer client for a property the broker personally listed - Correct Answer D. a broker

having a buyer client for a property the broker personally listed A parcel of vacant land 80 feet wide and 200 feet deep was sold for $200 per front foot. How much money would an individual agent receive for a 60% share of the 10% commission earned?

A. $640

B. $960

C. $1,600

• $2,400 - Correct Answer B. $960

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 a 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:

• obtain permission from her buyer-client in order to obtain compensation from the seller 2 / 3

• disclose her agency status to the seller at initial contact
• convince the seller to list with her and authorize dual agency
• provide the Working with Real Estate Agents brochure to the seller - Correct Answer C. convince the

seller to list with her and authorize dual agency If the broker-in-charge (BIC) is to act as one of the designated agents on a North Carolina in-house transaction, which of the following may be appointed as a designated agent for the other party to the transaction?

• an actively licensed provisional broker within the firm, so long as disclosure is made to both clients
• a full broker within the firm who has no prior confidential knowledge of the party that the BIC will

represent

• a broker-in-charge cannot be appointed as a designated agent
• a licensed broker who has prior confidential knowledge about the party that the BIC will represent -

Correct Answer B. a full broker within the firm who has no prior confidential knowledge of the party that the BIC will represent A licensee is an actively licensed real estate broker who has a written contract with his firm that specifies that he will not be treated like an employee. The licensee's entire income is from sales commissions rather than an hourly wage. Based on these facts, the licensee will be treated by the IRS as:

• a real estate assistant
• an employee
• a subagent
• an independent contractor - Correct Answer D. an independent contractor

All of the following are TRUE regarding the North Carolina Working With Real Estate Agents brochure,

EXCEPT:

• the consumer is not required to sign the brochure
• if the first substantial contact is by phone, the brochure must be provided within 3 calendar days
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