North Carolina Real Estate Broker Exam — All Questions

A broker's fiduciary duties to a client include loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care. Which best describes the duty of confidentiality after agency ends?

• a.It ends the moment the transaction closes
• b.It continues indefinitely as to the client's confidential information✓
• c.It applies only to the purchase price
• d.It is waived automatically once a commission is paid

The duty to keep a client's confidential information private survives the termination of the agency relationship and generally continues indefinitely. Closing the transaction or paying a commission does not release the broker to reveal a former client's motivations, financial limits, or bargaining position. The duty is not limited to the price; it covers any confidential information learned during the agency.

A buyer signs an offer, and before the seller accepts, the buyer notifies the seller in writing that the offer is withdrawn. What is the legal effect?

• a.The seller may still accept because the offer was in writing
• b.The buyer is liable for damages for revoking the offer
• c.The offer is revoked and there is no contract✓
• d.The offer converts into an option contract

An offer may be revoked by the offeror any time before it is accepted, and once revoked there is no contract to enforce. The seller cannot accept an offer that has already been withdrawn, and the buyer owes no damages for revoking because no binding agreement existed. An option would require separate consideration to keep the offer open, which was not present here.