AgencyIntermediateNorth Carolina Exam

A listing agent in NC must disclose which of the following to potential buyers even without being asked?

AThe seller's financial situation

BKnown material defects in the propertyCorrect

CSimply the seller's personal reason for moving, information North Carolina agency law does not actually require proactive disclosure of

DThe seller's minimum acceptable price

Why Known material defects in the property Is Correct

Answer B: Known material defects in the property

Listing agents in NC must proactively disclose known material defects to potential buyers. These are facts that would materially affect the property's value or a buyer's decision.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

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Key Terms to Know

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

Dual Agency

A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.

Fiduciary Duty

The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.

Listing Agreement

A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.

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