North Carolina (NC) Real Estate Broker Pre
licensing Exam Questions and Correct
Answers 2025
Which contract does NOT have to be in writing to be enforceable in North Carolina?
A)
Two-year lease
B)
Agreement creating an easement
C)
Contract to sell real estate
D)
Listing agreement CORRECT ANSWER: A)
Two-year lease
Which account are broker commissions paid from?
A)
Attorney's escrow account
B)
Brokers escrow account
C)
Brokers operations account
D)
Sellers personal account CORRECT ANSWER: C) Brokers operations account
According to the North Carolina Time-Share Act,
A)
a time-share developer may be fined $500 for each violation of the Act.
B)
the buyer should receive all disclosure documents before a closing date is set.
C)
a time-share developer must be registered as the broker-in-charge of the development.
D)
a time-share is not considered real property, so the buyer will not receive a deed. CORRECT
ANSWER: A)
a time-share developer may be fined $500 for each violation of the Act.
Rents, settlement proceeds, and cash must be deposited in a trust account no later than how
many days after receipt of the funds?
A)
7 days
B)
3 days
,C)
9 days
D)
5 days CORRECT ANSWER: B) 3 Days
Which of the following statements is TRUE about subdivisions in North Carolina?
A)
A developer of all new subdivisions must have streets approved, based on construction
standards set by the North Carolina Department of Transportation, and must declare the streets
to be for public or private use.
B)
Just because streets have been dedicated for public use and approved by the North Carolina
Department of Transportation, does not mean that the Department of Transportation has
assumed responsibility for maintenance of the streets.
C)
Sales contracts with deposits can be accepted on subdivision lots prior to plat approval.
D)
There must be at least five or more separate lots to be called a subdivision. CORRECT
ANSWER: B)
Just because streets have been dedicated for public use and approved by the North Carolina
Department of Transportation, does not mean that the Department of Transportation has
assumed responsibility for maintenance of the streets.
Which of the following statements is TRUE?
A)
If a leaking UST cannot be removed and the contamination totally remediated, then the buyer
must accept the property "as is."
B)
The sale of a house built before 1978 will require the buyer to get a test for lead.
C)
Mold can be found almost anywhere and can grow on almost any organic substance, so long as
moisture, oxygen, and an organic food source are present.
D)
Radon gas is easily detected by its sickly sweet smell. CORRECT ANSWER: C)
Mold can be found almost anywhere and can grow on almost any organic substance, so long as
moisture, oxygen, and an organic food source are present.
A full broker whose license has been expired for less than six months must
A)
show proof of supervision by a broker-in-charge.
B)
complete one post-licensing course and file an application for reinstatement.
C)
file a request for reinstatement.
D)
pay a $90 reinstatement fee on or before December 31.
Explanation CORRECT ANSWER: D)
pay a $90 reinstatement fee on or before December 31.
,Which statement is TRUE of an adjustable rate mortgage loan?
A)
The interest rate always adjusts to the prevalent market interest rate on the date of adjustment.
B)
Negative amortization is possible if there is a payment cap.
C)
The monthly payment is usually fixed for the life of the loan.
D)
The original interest rate is usually slightly higher than comparable fixed rate loans.
CORRECT ANSWER: B)
Negative amortization is possible if there is a payment cap.
Under North Carolina Real Estate Commission rules, an oral buyer agency agreement
A)
should be put in writing immediately after the buyer receives proper disclosure and signs the
Working with Real Estate Agents Disclosure form as required by state law.
B)
must be reduced to writing before the presentation of the first offer.
C)
must be in writing before preparation of the first offer.
D)
must be reduced to writing before acceptance of an offer. CORRECT ANSWER: B)
must be reduced to writing before the presentation of the first offer.
The North Carolina Residential Rental Agreements Act applies to only
A)
commercial property.
B)
residential property.
C)
industrial property.
D)
agricultural property. CORRECT ANSWER: B)
residential property.
Which of the following statements made by a broker would potentially be a violation of antitrust
laws?
A)
Our firm does charge more than our competitor, but we offer a wider range of marketing
services.
B)
My competitor's fees are so low that no other brokerage firm will cooperate with that firm.
C)
My firm charges 6% for listing and marketing residential properties in this area.
D)
, We think highly of our competitors, but we think we offer more value for our fee. CORRECT
ANSWER: B)
My competitor's fees are so low that no other brokerage firm will cooperate with that firm.
To remove provisional status, a licensee must
A)
continue to have a broker-in-charge.
B)
be on active status for three years.
C)
have two years of full-time experience.
D)
successfully complete three, 30-hour post-licensing courses within 18 months of license
issuance. CORRECT ANSWER: D)
successfully complete three, 30-hour post-licensing courses within 18 months of license
issuance.
While using the NCBA/NCAR 2-T Offer to Purchase and Contract, buyer and seller agree upon a
45-day due diligence period. Which of the following is TRUE?
A)
Buyer can cancel the contract and receive all monies back after the due diligence period has
expired.
B)
Buyer is entitled to a refund of all monies if buyer notifies seller of cancellation within 10 days of
entering into the contract.
C)
Buyer has no obligation to purchase the property during the due diligence period and may be
entitled to a full refund of any earnest money deposit paid.
D)
Buyer must purchase the property but may do so only during the due diligence period.
CORRECT ANSWER: C)
Buyer has no obligation to purchase the property during the due diligence period and may be
entitled to a full refund of any earnest money deposit paid.
Which is TRUE of a term mortgage loan?
A)
The entire principal amount is due at the end of the term.
B)
The debt is partially amortized over the life of the loan.
C)
The length of the term is limited by state statutes.
D)
All the interest is paid at the end of the term. CORRECT ANSWER: A)
The entire principal amount is due at the end of the term.
Under the concept of riparian rights, North Carolina owners of property adjacent to navigable
rivers or streams have the right to use the water and
licensing Exam Questions and Correct
Answers 2025
Which contract does NOT have to be in writing to be enforceable in North Carolina?
A)
Two-year lease
B)
Agreement creating an easement
C)
Contract to sell real estate
D)
Listing agreement CORRECT ANSWER: A)
Two-year lease
Which account are broker commissions paid from?
A)
Attorney's escrow account
B)
Brokers escrow account
C)
Brokers operations account
D)
Sellers personal account CORRECT ANSWER: C) Brokers operations account
According to the North Carolina Time-Share Act,
A)
a time-share developer may be fined $500 for each violation of the Act.
B)
the buyer should receive all disclosure documents before a closing date is set.
C)
a time-share developer must be registered as the broker-in-charge of the development.
D)
a time-share is not considered real property, so the buyer will not receive a deed. CORRECT
ANSWER: A)
a time-share developer may be fined $500 for each violation of the Act.
Rents, settlement proceeds, and cash must be deposited in a trust account no later than how
many days after receipt of the funds?
A)
7 days
B)
3 days
,C)
9 days
D)
5 days CORRECT ANSWER: B) 3 Days
Which of the following statements is TRUE about subdivisions in North Carolina?
A)
A developer of all new subdivisions must have streets approved, based on construction
standards set by the North Carolina Department of Transportation, and must declare the streets
to be for public or private use.
B)
Just because streets have been dedicated for public use and approved by the North Carolina
Department of Transportation, does not mean that the Department of Transportation has
assumed responsibility for maintenance of the streets.
C)
Sales contracts with deposits can be accepted on subdivision lots prior to plat approval.
D)
There must be at least five or more separate lots to be called a subdivision. CORRECT
ANSWER: B)
Just because streets have been dedicated for public use and approved by the North Carolina
Department of Transportation, does not mean that the Department of Transportation has
assumed responsibility for maintenance of the streets.
Which of the following statements is TRUE?
A)
If a leaking UST cannot be removed and the contamination totally remediated, then the buyer
must accept the property "as is."
B)
The sale of a house built before 1978 will require the buyer to get a test for lead.
C)
Mold can be found almost anywhere and can grow on almost any organic substance, so long as
moisture, oxygen, and an organic food source are present.
D)
Radon gas is easily detected by its sickly sweet smell. CORRECT ANSWER: C)
Mold can be found almost anywhere and can grow on almost any organic substance, so long as
moisture, oxygen, and an organic food source are present.
A full broker whose license has been expired for less than six months must
A)
show proof of supervision by a broker-in-charge.
B)
complete one post-licensing course and file an application for reinstatement.
C)
file a request for reinstatement.
D)
pay a $90 reinstatement fee on or before December 31.
Explanation CORRECT ANSWER: D)
pay a $90 reinstatement fee on or before December 31.
,Which statement is TRUE of an adjustable rate mortgage loan?
A)
The interest rate always adjusts to the prevalent market interest rate on the date of adjustment.
B)
Negative amortization is possible if there is a payment cap.
C)
The monthly payment is usually fixed for the life of the loan.
D)
The original interest rate is usually slightly higher than comparable fixed rate loans.
CORRECT ANSWER: B)
Negative amortization is possible if there is a payment cap.
Under North Carolina Real Estate Commission rules, an oral buyer agency agreement
A)
should be put in writing immediately after the buyer receives proper disclosure and signs the
Working with Real Estate Agents Disclosure form as required by state law.
B)
must be reduced to writing before the presentation of the first offer.
C)
must be in writing before preparation of the first offer.
D)
must be reduced to writing before acceptance of an offer. CORRECT ANSWER: B)
must be reduced to writing before the presentation of the first offer.
The North Carolina Residential Rental Agreements Act applies to only
A)
commercial property.
B)
residential property.
C)
industrial property.
D)
agricultural property. CORRECT ANSWER: B)
residential property.
Which of the following statements made by a broker would potentially be a violation of antitrust
laws?
A)
Our firm does charge more than our competitor, but we offer a wider range of marketing
services.
B)
My competitor's fees are so low that no other brokerage firm will cooperate with that firm.
C)
My firm charges 6% for listing and marketing residential properties in this area.
D)
, We think highly of our competitors, but we think we offer more value for our fee. CORRECT
ANSWER: B)
My competitor's fees are so low that no other brokerage firm will cooperate with that firm.
To remove provisional status, a licensee must
A)
continue to have a broker-in-charge.
B)
be on active status for three years.
C)
have two years of full-time experience.
D)
successfully complete three, 30-hour post-licensing courses within 18 months of license
issuance. CORRECT ANSWER: D)
successfully complete three, 30-hour post-licensing courses within 18 months of license
issuance.
While using the NCBA/NCAR 2-T Offer to Purchase and Contract, buyer and seller agree upon a
45-day due diligence period. Which of the following is TRUE?
A)
Buyer can cancel the contract and receive all monies back after the due diligence period has
expired.
B)
Buyer is entitled to a refund of all monies if buyer notifies seller of cancellation within 10 days of
entering into the contract.
C)
Buyer has no obligation to purchase the property during the due diligence period and may be
entitled to a full refund of any earnest money deposit paid.
D)
Buyer must purchase the property but may do so only during the due diligence period.
CORRECT ANSWER: C)
Buyer has no obligation to purchase the property during the due diligence period and may be
entitled to a full refund of any earnest money deposit paid.
Which is TRUE of a term mortgage loan?
A)
The entire principal amount is due at the end of the term.
B)
The debt is partially amortized over the life of the loan.
C)
The length of the term is limited by state statutes.
D)
All the interest is paid at the end of the term. CORRECT ANSWER: A)
The entire principal amount is due at the end of the term.
Under the concept of riparian rights, North Carolina owners of property adjacent to navigable
rivers or streams have the right to use the water and
