Contracts, Finance, and Transfer Practice Question
Question
A seller is preparing to list a home for the North Carolina Real Estate Broker Exam involving listing agreement and material facts and due diligence practice. Which statement is the best answer? (Item 39)
Answer choices
- A. The client’s preference eliminates the need to disclose known material facts.
- B. The party who complains first automatically receives the remedy requested.
- C. Identify broker employment terms, compensation, property description, and authorization in a way that fits North Carolina exam practice.
- D. Escrow or closing staff automatically assume all brokerage agency and disclosure duties.
Correct Answer
C. Identify broker employment terms, compensation, property description, and authorization in a way that fits North Carolina exam practice.
Explanation
The correct answer is C because listing agreement requires candidates to identify broker employment terms, compensation, property description, and authorization. The North Carolina reference keeps the scenario tied to state licensing practice, while the other options rely on unsafe assumptions about oral custom, escrow, client preference, independent licensee authority, or ignoring written duties.
Question details
- Difficulty: medium
- Domain: Contracts, Finance, and Transfer
- Objective: listing agreement