North Carolina Real Estate Broker
Examination — National Practice
Questions And Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. Which of the following best defines real property?
A. Personal possessions
B. Land and everything permanently attached to it
C. Movable items
D. Trade fixtures
B. Land and everything permanently attached to it
Rationale: Real property includes land plus any permanent
structures, attachments, and improvements.
2. A property manager who collects rents and handles day-to-day
operations of an apartment complex is primarily acting as a:
, A. Broker
B. Salesperson
C. Fiduciary
D. Lender
C. Fiduciary
Rationale: The property manager acts in a fiduciary capacity to the
owner, managing property on the owner's behalf.
3. Which of the following is true regarding a listing agreement?
A. It must be oral to be enforceable
B. It creates an agency relationship
C. It conveys title to the broker
D. It must be filed with the county
B. It creates an agency relationship
Rationale: A listing agreement establishes the broker as the agent of
the seller.
4. Which of the following is considered a material fact in real estate
transactions?
A. Seller’s motivation
B. Property’s past fire damage
C. Buyer’s credit history
D. Agent’s personal opinion
B. Property’s past fire damage
, Rationale: Material facts are those that affect the value or
desirability of a property.
5. The principle of highest and best use is applied to determine:
A. Zoning compliance
B. The most profitable legal use of a property
C. Loan eligibility
D. Tax assessments
B. The most profitable legal use of a property
Rationale: Highest and best use identifies the use that will produce
the maximum value legally and physically possible.
6. When a broker commingles client funds with personal funds, this is:
A. Acceptable with written permission
B. Illegal
C. Encouraged for convenience
D. Legal if the amounts are small
B. Illegal
Rationale: Commingling client funds with personal funds is a
violation of fiduciary duties and real estate law.
7. In a real estate contract, consideration is:
A. The property itself
B. Something of value exchanged by the parties
C. The deed
D. The listing agreement
, B. Something of value exchanged by the parties
Rationale: Consideration refers to the value given by each party,
which can be money, services, or a promise.
8. Which of the following contracts must be in writing to be enforceable
under the Statute of Frauds?
A. Listing agreement
B. Lease for six months
C. Purchase agreement for real estate
D. Buyer agency agreement
C. Purchase agreement for real estate
Rationale: Contracts involving the sale of real estate must be in
writing to be enforceable.
9. The primary purpose of RESPA (Real Estate Settlement Procedures
Act) is to:
A. Regulate commissions
B. Protect consumers from excessive closing costs and disclose
settlement fees
C. Control interest rates
D. Require brokers to carry errors and omissions insurance
B. Protect consumers from excessive closing costs and disclose
settlement fees
Rationale: RESPA ensures transparency and fairness in real estate
settlement processes.
Examination — National Practice
Questions And Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. Which of the following best defines real property?
A. Personal possessions
B. Land and everything permanently attached to it
C. Movable items
D. Trade fixtures
B. Land and everything permanently attached to it
Rationale: Real property includes land plus any permanent
structures, attachments, and improvements.
2. A property manager who collects rents and handles day-to-day
operations of an apartment complex is primarily acting as a:
, A. Broker
B. Salesperson
C. Fiduciary
D. Lender
C. Fiduciary
Rationale: The property manager acts in a fiduciary capacity to the
owner, managing property on the owner's behalf.
3. Which of the following is true regarding a listing agreement?
A. It must be oral to be enforceable
B. It creates an agency relationship
C. It conveys title to the broker
D. It must be filed with the county
B. It creates an agency relationship
Rationale: A listing agreement establishes the broker as the agent of
the seller.
4. Which of the following is considered a material fact in real estate
transactions?
A. Seller’s motivation
B. Property’s past fire damage
C. Buyer’s credit history
D. Agent’s personal opinion
B. Property’s past fire damage
, Rationale: Material facts are those that affect the value or
desirability of a property.
5. The principle of highest and best use is applied to determine:
A. Zoning compliance
B. The most profitable legal use of a property
C. Loan eligibility
D. Tax assessments
B. The most profitable legal use of a property
Rationale: Highest and best use identifies the use that will produce
the maximum value legally and physically possible.
6. When a broker commingles client funds with personal funds, this is:
A. Acceptable with written permission
B. Illegal
C. Encouraged for convenience
D. Legal if the amounts are small
B. Illegal
Rationale: Commingling client funds with personal funds is a
violation of fiduciary duties and real estate law.
7. In a real estate contract, consideration is:
A. The property itself
B. Something of value exchanged by the parties
C. The deed
D. The listing agreement
, B. Something of value exchanged by the parties
Rationale: Consideration refers to the value given by each party,
which can be money, services, or a promise.
8. Which of the following contracts must be in writing to be enforceable
under the Statute of Frauds?
A. Listing agreement
B. Lease for six months
C. Purchase agreement for real estate
D. Buyer agency agreement
C. Purchase agreement for real estate
Rationale: Contracts involving the sale of real estate must be in
writing to be enforceable.
9. The primary purpose of RESPA (Real Estate Settlement Procedures
Act) is to:
A. Regulate commissions
B. Protect consumers from excessive closing costs and disclose
settlement fees
C. Control interest rates
D. Require brokers to carry errors and omissions insurance
B. Protect consumers from excessive closing costs and disclose
settlement fees
Rationale: RESPA ensures transparency and fairness in real estate
settlement processes.
