Real Estate Set 2

Front 1

What is the purpose of the WWREA Brochure?

Back 1

To educate the consumer of the different types of agencies

Front 2

When must an real estate broker in NC present the WWREA brochure to a potential client?

Back 2

(customer) first substantial contact

Front 3

Define “First Substantial Contact” and give at least three examples of this?

Back 3

When the person begins talking personal or confidential info discussing price range, needs, wishes and abilities

Front 4

What are the rules regarding the “Telephonic” delivery of the WWREA brochure? How many days does an agent have to get the actual brochure to someone after agency disclosures?

Back 4

As soon as possible but no later then 3 calendar days from the date of first substantial contact

Front 5

Describe the historical relationship of MLSs and co-brokered transactions, particularly as it affected subagency relationships?

Back 5

Significant changes in the nature and practice of real estate brokerage services in the past 50 years has led to misconceptions and confusion among the public about agency duties and representation. B. Creation of multiple listing services (MLSs) increased exposure of the listings and expedited sales.

C. The switch from licensees working only in unilateral seller subagency to the increasingly common practice of exclusive agency for buyer or seller and dual agency options.

D. North Carolina remains a caveat emptor state

Front 6

Define the common law of agency?

Back 6

A principal authorizes an agent to conduct business on behalf of the principal and thereby binds the principal.

Front 7

Define terms associated with agency and non agency relationships, such as principal, client, and customer ?

Back 7

Principal/client the person who hires the firm to conduct business on there behalf can be buyer seller landlord and tenant.. customer the third party whom some levels of service is provided by an agent of another party, but is not represented by the agent

Front 8

Explain the duties and liabilities of agents to their principals

Back 8

principal- old car obedience loyalty disclosure confidentiality accounting reasonable skill and care..

Front 9

Explain the duties and liabilities of agents to the third parties?

Back 9

honesty, fairness , disclosure of material facts Compliance with license law and NCREC rules

Front 10

Explain the duties and liabilities of agents to their clients/principal and third parties regarding disclosure practices and consequences for failure to act appropriately?

Back 10

1. Disciplinary action by the North Carolina Real Estate Commission.. 2 .A civil action

In court brought by the injured party..3. Criminal

prosecution brought by the district attorney

Front 11

Explain the duties and liabilities of agents to their clients/principal and third parties regarding disclosure practices and consequences for failure to act appropriately?

Back 11

1. Disciplinary action by the North Carolina Real Estate Commission.. 2 .A civil action In court brought by the injured party.. 3. Criminal prosecution brought by the district attorney

Front 12

Explain the duties and liabilities of agents to their principals and third parties when it comes to Material facts-

Back 12

is any fact that is important or relevant to the issue at hand and must be voluntarily disclosed to all parties to the transaction

1. Facts about the property itself

2. Facts relating directly to the property

3. Facts relating directly to the agent’s principal to complete the transaction

4. Facts known to be of specific importance to a party.

Prohibited conduct—North Carolina statutes prohibit the following types of acts in the broker's relationship with any party to the transaction

Front 13

Explain the duties and liabilities of agents to their principals and third parties when it comes to Willful misrepresentation—

Back 13

intentionally misinforming a party about a material fact when broker has actual knowledge of the fact; also occurs when agent makes an incorrect informational statement without regard for the truth

Front 14

Explain the duties and liabilities of agents to their principals and third parties when it comes to Negligent misrepresentation—

Back 14

unintentionally giving inaccurate information to a party due of error or inaccurate information being known by the broker who should have reasonably have known the information to be in error

Front 15

Explain the duties and liabilities of agents to their principals and third parties when it comes to Willful omission—

Back 15

intentionally withholding material fact that is known by the broker

Front 16

Explain the duties and liabilities of agents to their principals and third parties when it comes to Negligent omission-

Back 16

unintentionally withholding material fact of which the broker is unaware but should reasonably have known even if broker is acting in good faith; brokers have obligation to discover and disclose all material facts that any prudent agent should have discovered.

Front 17

Explain the duties and liabilities of agents to their principals and third parties when it comes to Stigmatized Properties-

Back 17

society has branded property as undesirable because of events that occurred there, such as criminal events or other tragedies. 1. Per North Carolina law, the death or serious illness of an owner or resident of residential property is NOT a material fact. 2. If asked about the death or illness, an agent may refuse to answer, but if they choose to answer, they must answer truthfully. 3. If the death or illness is AIDS or HIV related, this falls under fair housing laws protected class, Handicapping Condition, and the query cannot be addressed. 4. Sex Offender Disclosure—the presence of a registered sex offender in or near a property is not considered by North Carolina law to be a material facts.

Front 18

Describe the responsibilities of the principals to their agents and to third parties and the consequences for failure to act appropriately? What are the duties of the Principal to there agent?

Back 18

1. To act in good faith

2. To pay the agent the agreed-upon compensation when the agent successfully completes its duties.

Front 19

Describe the responsibilities of the principals to their agents and to third parties and the consequences for failure to act appropriately? What are the Duties of the principal to the Third Parties?

Back 19

1. The principal must refrain from making misrepresentations about the property; would be guilty of fraud

2. In North Carolina, principal has NO affirmative duty to disclose any known defects in the property; caveat emptor still exists in North Carolina

Front 20

Describe the responsibilities of the principals to their agents and to third parties and the consequences for failure to act appropriately?and what are the principles consequences for failure to act appropriately with their agent or third party.

Back 20

1. Principal that violates duties may be subject to both a civil lawsuit and criminal prosecution, if so warranted

2. Principal may also be liable for actions of his/her agent’s misconduct.