Podcast
Questions and Answers
A listing agent has knowledge of a 'pending foreclosure' of a property and does not disclose this information. The agent is guilty of:
A listing agent has knowledge of a 'pending foreclosure' of a property and does not disclose this information. The agent is guilty of:
A broker tells a prospective buyer that the owner of his listing is having financial problems and must sell. This is:
A broker tells a prospective buyer that the owner of his listing is having financial problems and must sell. This is:
Which of the following would NOT be considered a material fact that must be disclosed to potential buyers?
Which of the following would NOT be considered a material fact that must be disclosed to potential buyers?
Broker Ron Thompson did not disclose to Mr. Simpson that there was a potential zoning change. Which of the following is true?
Broker Ron Thompson did not disclose to Mr. Simpson that there was a potential zoning change. Which of the following is true?
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Sam Sleazy tells broker Hank Honor not to disclose problems with the septic tank. Hank should:
Sam Sleazy tells broker Hank Honor not to disclose problems with the septic tank. Hank should:
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A North Carolina licensee working with Buyer A and Buyer B receives multiple offers on a property. The licensee should:
A North Carolina licensee working with Buyer A and Buyer B receives multiple offers on a property. The licensee should:
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The doctrine of 'caveat emptor' still applies to some extent to the relationship between:
The doctrine of 'caveat emptor' still applies to some extent to the relationship between:
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The North Carolina Residential Property Disclosure Act requires all of the following EXCEPT:
The North Carolina Residential Property Disclosure Act requires all of the following EXCEPT:
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A listing broker should
A listing broker should
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Study Notes
Disclosure Obligations in Real Estate
- A listing agent's failure to disclose a "pending foreclosure" amounts to willful omission.
- Brokers must evaluate whether disclosing a seller's financial issues is acceptable; it is not acceptable unless it affects the ability to close the deal.
Material Facts in Real Estate Transactions
- A material fact requiring disclosure includes any physical defects, such as a leaking basement or an existing lien.
- The suicide of an individual in the home is not classified as a material fact that necessitates disclosure to potential buyers.
Zoning Changes and Seller Obligations
- Brokers must disclose potential zoning changes that could significantly enhance property value to both the buyer and the seller.
Seller's Instructions and Ethical Obligations
- If a seller instructs a broker not to disclose issues like septic tank problems, the broker should refuse the listing unless the seller consents to disclosure.
Dual Agency and Offer Disclosure
- In a dual agency scenario, if one buyer makes an offer and another buyer expresses interest, the agent must ensure that the first buyer agrees to any disclosure before sharing their offer with the second buyer.
Caveat Emptor Principle
- Caveat emptor applies primarily to the relationship between sellers and buyers, emphasizing that buyers should exercise caution.
North Carolina Residential Property Disclosure Act
- Sellers are required to complete a property disclosure form before buyers submit an offer.
- This law does not require the disclosure of material facts when a listing broker is involved.
Listing Broker Responsibilities
- A listing broker is expected to ensure that sellers complete the appropriate property disclosure forms accurately and timely.
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Description
Test your knowledge on the disclosure obligations that real estate agents must adhere to. This quiz covers critical topics such as material facts, zoning changes, and ethical responsibilities in real estate transactions. Understand the importance of transparency and the implications of willful omission.
