AgencyIntermediateNorth Carolina Exam

A North Carolina buyer's agent who discovers a material defect in the property being shown must:

AKeep it confidential to protect the seller

BDisclose it to the buyer clientCorrect

CReport it only to the NCREC

DDisclose it only if the buyer asks

Why Disclose it to the buyer client Is Correct

Answer B: Disclose it to the buyer client

A buyer's agent in NC has a duty of disclosure to their buyer client and must disclose all material facts, including defects, that could affect the 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

Buyer's Agent

A real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

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Key Terms to Know

Buyer's Agent

A real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

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.

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Agency Law Guide

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