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North Carolina Real Estate Commission NC Real Estate Broker National Sample Questions (Q78-Q83):

NEW QUESTION # 78
A listing brokerage firm offered a 3% commission split to any broker who could find a buyer for their
$700,000 listing. The seller agreed to pay a 7% commission. A broker from another brokerage firm found a buyer, and the seller accepted their offer of $695,000. What did the listing brokerage firm earn on this transaction?

A. $21,000
B. $27,800
C. $20,850
D. $28,000

Answer: B

Explanation:
The total commission earned was 7% of the final sales price ($695,000 × 0.07 = $48,650).
The cooperating (buyer's) broker received 3% ($695,000 × 0.03 = $20,850).
The listing brokerage firm retained the difference:
$48,650 - $20,850 = $27,800.
So, the listing firm earned $27,800 - answer C.

NEW QUESTION # 79
If a buyer defaults on a purchase agreement just prior to settlement, what clause in the contract would likely allow the seller to keep the earnest money deposit?

A. Punitive damages
B. Liquidated damages
C. Compensatory damages
D. Actual damages

Answer: B

Explanation:
Liquidated damages refer to a pre-agreed amount of compensation (often the earnest money deposit) that one party is entitled to retain in the event the other party breaches the contract. In North Carolina, the standard Offer to Purchase and Contract includes provisions stating that if a buyer breaches after due diligence, the seller may retain the earnest money as liquidated damages. Therefore, the correct answer is C.
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NEW QUESTION # 80
Which statement about a mortgagee's title insurance policy is TRUE?

A. The policy premium is usually added to the monthly mortgage amount.
B. Coverage never expires as long as the buyer owns the property.
C. The amount paid on a claim equals the original loan amount.
D. It protects the lender against defects in the title.

Answer: D

Explanation:
A mortgagee's (lender's) title insurance policy protects the lender from financial loss caused by title defects that were not discovered before the mortgage was issued. The policy coverage lasts until the loan is repaid.
The borrower pays a one-time premium at closing-it is not part of the monthly mortgage. Claims are based on the unpaid balance of the loan, not necessarily the full loan amount. Therefore, the correct answer is D.
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NEW QUESTION # 81
Which of the following is a key characteristic of an exclusive right to sell listing agreement?

A. The broker must be the procuring cause of the sale to earn a commission.
B. The seller does not owe a commission if they sell the property themselves.
C. The seller can list the property with multiple brokers.
D. The broker is guaranteed a commission if the property sells during the listing term.

Answer: D

Explanation:
Anexclusive right to selllisting gives one broker the sole authority to market and sell a property. The broker is entitled to a commissionno matter who procures the buyer, even if the seller finds the buyer independently during the listing period commission payment upon sale within the term-matchingoption A.
Option B is false (that applies to exclusive agency); C applies to open or exclusive-agency; and D conflicts with the exclusivity provision.

NEW QUESTION # 82
After a purchase agreement has been signed, but before the transaction closes, the buyer attempts to have the contract voided. The buyer was able to prove that, because of a mental disorder, they were incompetent at the time the contract was signed although later went on medication. Is the contract still valid?

A. Yes, because mental illness does not factor into questions of contractual capacity.
B. No, because buyers are entitled to rescind contracts before closing.
C. No, because the temporary incapacity allows them to void the contract.
D. Yes, because the contract is still executory.

Answer: C

Explanation:
For a contract to be valid and enforceable, all parties must have legal capacity at the time of signing. If the buyer can prove they were legally incompetent due to mental illness at the time of execution, they may have the right to void the contract-even if they later regained competence. Temporary or situational incompetence at the time of contract formation is legally sufficient to make the contract voidable. Therefore, the correct answer is D.
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NEW QUESTION # 83
......

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Effective North Carolina Real Estate Commission NCREC-Broker-N Exam Preparation In a Short Time

100% Pass Quiz Updated North Carolina Real Estate Commission - NCREC-Broker-N Valid Test Preparation

North Carolina Real Estate Commission NC Real Estate Broker National Sample Questions (Q78-Q83):

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