Page 1 of 86
North Carolina Real Estate Broker exam ACTUAL
EXAM COMPLETE 200 QUESTIONS AND VERIFIED
SOLUTIONS LATEST UPDATE THIS YEAR
Full Exam Overview: Content Areas
The following pillars are covered across all batches of this practice set:
• Property Ownership: Real vs. Personal property, land characteristics, legal descriptions,
and encumbrances.
• Land Use Controls and Regulations: Public and private restrictions, zoning, and
environmental issues.
• Valuation and Market Analysis: Appraisal principles, methods of estimating value, and
CMA (Comparative Market Analysis).
• Financing: Basic mortgage concepts, lending laws (TRID, RESPA), and types of loans.
• General Principles of Agency: Relationships between principals and agents, fiduciary
duties, and disclosure requirements.
• Property Disclosures: Material facts, environmental hazards, and property condition.
• Contracts: Elements of a contract, breaches, and real estate sales agreements.
• Real Estate Calculations: Commissions, net to seller, taxes, and prorations.
Batch 1: Questions 1–100
1. Which of the following is an example of real property?
A. A leasehold interest in an apartment
B. A chandelier that can be removed without damage
C. A trade fixture installed by a tenant
D. Land and anything permanently attached to it
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Answer: D
Rationale: Real property includes land plus all appurtenances (anything permanently affixed to
it), such as buildings, trees, and mineral rights.
2. A broker listing a property promises to advertise it in multiple publications and online. This
is an example of:
A. An implied contract
B. An express contract
C. A unilateral contract
D. A voidable contract
Answer: B
Rationale: An express contract is one in which the parties state the terms and show their
intentions in words, either oral or written.
3. The right of a government to take private property for public use, provided just
compensation is paid, is known as:
A. Escheat
B. Police Power
C. Eminent Domain
D. Taxation
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Answer: C
Rationale: Eminent domain is the right; "Condemnation" is the actual process of taking the
property.
4. A property owner has a driveway that crosses a neighbor's land to access the public road.
The owner has a(n):
A. Easement in gross
B. Easement appurtenant
C. License
D. Encroachment
Answer: B
Rationale: An easement appurtenant "runs with the land" and involves a dominant tenement
(the one using the path) and a servient tenement (the land being crossed).
5. Which type of deed provides the greatest protection to the buyer?
A. Quitclaim Deed
B. Special Warranty Deed
C. General Warranty Deed
D. Bargain and Sale Deed
Answer: C
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Rationale: A General Warranty Deed includes five covenants (seisin, quiet enjoyment, further
assurance, against encumbrances, and warranty forever).
6. If a borrower’s monthly payment includes principal, interest, taxes, and insurance, the loan
is referred to as a:
A. Balloon loan
B. Straight loan
C. PITI loan
D. Amortized loan
Answer: C
Rationale: PITI stands for Principal, Interest, Taxes, and Insurance; common in budget
mortgages.
7. A subdivision has a deed restriction stating that no fences over four feet tall may be built.
The local zoning ordinance allows fences up to six feet. Which rule takes precedence?
A. The zoning ordinance
B. The deed restriction
C. The homeowner's preference
D. The state building code
Answer: B
North Carolina Real Estate Broker exam ACTUAL
EXAM COMPLETE 200 QUESTIONS AND VERIFIED
SOLUTIONS LATEST UPDATE THIS YEAR
Full Exam Overview: Content Areas
The following pillars are covered across all batches of this practice set:
• Property Ownership: Real vs. Personal property, land characteristics, legal descriptions,
and encumbrances.
• Land Use Controls and Regulations: Public and private restrictions, zoning, and
environmental issues.
• Valuation and Market Analysis: Appraisal principles, methods of estimating value, and
CMA (Comparative Market Analysis).
• Financing: Basic mortgage concepts, lending laws (TRID, RESPA), and types of loans.
• General Principles of Agency: Relationships between principals and agents, fiduciary
duties, and disclosure requirements.
• Property Disclosures: Material facts, environmental hazards, and property condition.
• Contracts: Elements of a contract, breaches, and real estate sales agreements.
• Real Estate Calculations: Commissions, net to seller, taxes, and prorations.
Batch 1: Questions 1–100
1. Which of the following is an example of real property?
A. A leasehold interest in an apartment
B. A chandelier that can be removed without damage
C. A trade fixture installed by a tenant
D. Land and anything permanently attached to it
,Page 2 of 86
Answer: D
Rationale: Real property includes land plus all appurtenances (anything permanently affixed to
it), such as buildings, trees, and mineral rights.
2. A broker listing a property promises to advertise it in multiple publications and online. This
is an example of:
A. An implied contract
B. An express contract
C. A unilateral contract
D. A voidable contract
Answer: B
Rationale: An express contract is one in which the parties state the terms and show their
intentions in words, either oral or written.
3. The right of a government to take private property for public use, provided just
compensation is paid, is known as:
A. Escheat
B. Police Power
C. Eminent Domain
D. Taxation
,Page 3 of 86
Answer: C
Rationale: Eminent domain is the right; "Condemnation" is the actual process of taking the
property.
4. A property owner has a driveway that crosses a neighbor's land to access the public road.
The owner has a(n):
A. Easement in gross
B. Easement appurtenant
C. License
D. Encroachment
Answer: B
Rationale: An easement appurtenant "runs with the land" and involves a dominant tenement
(the one using the path) and a servient tenement (the land being crossed).
5. Which type of deed provides the greatest protection to the buyer?
A. Quitclaim Deed
B. Special Warranty Deed
C. General Warranty Deed
D. Bargain and Sale Deed
Answer: C
, Page 4 of 86
Rationale: A General Warranty Deed includes five covenants (seisin, quiet enjoyment, further
assurance, against encumbrances, and warranty forever).
6. If a borrower’s monthly payment includes principal, interest, taxes, and insurance, the loan
is referred to as a:
A. Balloon loan
B. Straight loan
C. PITI loan
D. Amortized loan
Answer: C
Rationale: PITI stands for Principal, Interest, Taxes, and Insurance; common in budget
mortgages.
7. A subdivision has a deed restriction stating that no fences over four feet tall may be built.
The local zoning ordinance allows fences up to six feet. Which rule takes precedence?
A. The zoning ordinance
B. The deed restriction
C. The homeowner's preference
D. The state building code
Answer: B
