[Listing Price and Terms Types of Listing Agreements] A seller lists his home with a brokerage firm, allowing the brokerage to put a sign in the yard, list the property in the multiple listing service, and advertise it on social medi
Answer(s): A
An exclusive agency listing agreement gives the listing brokerage the exclusive right to market the property, but if the seller personally finds the buyer (e.g., a co-worker), no commission is owed. In contrast, an exclusive right to sell agreement would entitle the brokerage to a commission regardless of who finds the buyer. Therefore, the correct answer is A.
[Offers and Negotiations Offer Presentation Timeline] A North Carolina broker just received an offer to purchase a home they have listed. According to the North Carolina Real Estate License Law and the Real Estate Commission Rules, the broker must present the offer to the seller immediately but no later than:
Answer(s): D
According to the North Carolina Real Estate Commission Rules, a broker must present all offers "immediately, but in no event later than three calendar days from the date of receipt." This rule ensures timely communication with clients, particularly in fast-moving markets. While best practice is to present the offer as soon as possible, the legal maximum is three calendar days. Therefore, the correct answer is D.
[Compliance with Laws and Regulations Valuation: Income Approach] Which is the correct formula for finding the value of a property using a capitalization rate?
Answer(s): B
In the income approach to real estate valuation, the formula used is:Value = Net Operating Income (NOI) ÷ Capitalization Rate This method estimates the value of an income-producing property based on its ability to generate income. Using this formula, you divide the NOI by the cap rate to find the value. Gross income is not used without adjustments, and multiplication or inverting the formula is incorrect. Therefore, the correct answer is B.
[Offers and Negotiations Statute of Frauds]The statute of frauds requires contracts for the sale of real property to be:
The Statute of Frauds is a legal doctrine that requires certain types of contracts--including contracts for the sale of real property--to be in writing to be enforceable in a court of law. Oral agreements for real estate transactions are not enforceable under this law in North Carolina. There is no requirement that contracts be drafted by attorneys, executed by a certain date, or recorded. Therefore, the correct answer is B.
[Broker's Authority and Duties Trust Account Violations] A North Carolina broker deposits a buyer's earnest money check into their firm's general fund so that they can pay the rent on the brokerage office. This is an example of:
Commingling is the illegal act of mixing a client's funds--such as earnest money--with the broker's personal or business funds. North Carolina law strictly prohibits brokers from depositing trust money (like earnest deposits) into the firm's general operating account. In this case, the broker used the funds to pay rent, which could also constitute conversion (intentional misuse). But since the question specifically addresses the deposit, the correct answer is B commingling.
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