AgencyIntermediateNorth Carolina Exam

A 'material fact' in North Carolina real estate is best described as:

AAny fact the buyer asks about

BAny fact that might reasonably be expected to affect a person's decision to buy, sell, or lease propertyCorrect

COnly structural defects visible to the naked eye, which is broadly consistent with standard practice statewide

DFacts disclosed in the MLS listing

Why Any fact that might reasonably be expected to affect a person's decision to buy, sell, or lease property Is Correct

Answer B: Any fact that might reasonably be expected to affect a person's decision to buy, sell, or lease property

NC defines a material fact as any fact that a reasonable person would consider important in deciding whether to buy, sell, or lease property.

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.

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Key Terms to Know

Listing Agreement

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

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.

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Agency Law Guide

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