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North Carolina Real Estate Broker Exam COMPLETE
QUESTIONS AND DETAILED SOLUTIONS LATEST
UPDATE THIS YEAR-JUST RELEASED
Summarized Exam Coverage – NC Real Estate Broker Exam
The exam is divided into a National section (general real estate principles) and a State section (NC-
specific laws and practices) . Topics include: Property Ownership, Land Use Controls, Law of Agency, Fair
Housing, Real Estate Contracts, Financing, Closings, Valuation, NC License Law and Commission Rules
(G.S. 93A, 21 NCAC 58), Duties of a Broker-in-Charge, Trust Account Guidelines, and Closing Procedures .
1. A property owner gifts a house to her daughter but retains the right to live there for the rest of her
life. What type of estate does the daughter receive?
A) A life estate
B) A remainder interest
C) A reversionary interest
D) A fee simple absolute
Answer: B – The daughter has a remainder interest; she will take possession after the life estate ends.
2. A broker lists a home and receives an offer at full price. The seller verbally accepts but delays signing.
The buyer revokes the offer. Is there a valid contract?
A) Yes, verbal acceptance is binding in NC for 48 hours
B) No, an offer can be revoked any time before written acceptance
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C) Yes, because the price matched the asking price
D) No, unless the buyer paid earnest money
Answer: B – An offer is revocable until it has been accepted in writing by the seller.
3. A provisional broker in NC wants to open their own real estate firm. Is this permitted under NC Real
Estate Commission rules?
A) Yes, if they complete 30 hours of post-licensing education
B) Yes, but they must operate under the name of a supervising broker
C) No, a provisional broker cannot be a sole proprietor or Broker-in-Charge
D) No, only attorneys can open firms in North Carolina
Answer: C – Provisional brokers must be supervised. Only a designated Broker-in-Charge can open a
firm .
4. A developer places a restrictive covenant on all lots in a subdivision prohibiting fences. This is an
example of:
A) A public land use control
B) An easement by necessity
C) A private land use restriction
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D) A zoning ordinance
Answer: C – Restrictive covenants are private agreements, typically enforced by homeowners
associations.
5. A tenant signs a lease for 18 months. Under NC law, what type of lease is this regarding its duration?
A) An estate at will
B) A periodic tenancy (month-to-month)
C) A tenancy for years
D) An estate at sufferance
Answer: C – Any lease with a definite start and end date is a "tenancy for years," regardless of duration.
6. A seller accepts an offer, but before closing, the house is destroyed by a tornado. Under common law
and typical NC contract provisions, who bears the loss?
A) The buyer, because they had equitable title
B) The seller, unless the contract states otherwise
C) The insurance company only, no loss to either party
D) Both parties equally share the loss
Answer: B – Risk of loss typically remains with the seller until closing (delivery of deed).
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7. A licensed NC broker is moving to a new brokerage firm. What is the broker’s primary responsibility
regarding the transition of ongoing transactions?
A) All files must be destroyed immediately
B) The former Broker-in-Charge must handle all remaining details
C) The broker must notify clients and facilitate the transfer of files
D) The broker must wait until all current transactions close before moving
Answer: C – Brokers must protect client interests, often requiring client consent to move files .
8. A property sold for $300,000. The tax rate is $0.75 per $100 of assessed value. If the property is
assessed at 80% of value, what is the annual property tax?
A) $1,800
B) $2,250
C) $1,740
D) $2,400
Answer: A – Assessed value: $300,000 × 0.80 = $240,000. Tax = ($240,) × $0.75 = $1,800.
9. A couple holds title as "tenants by the entirety." If one spouse dies, what happens to the property?
A) The deceased spouse’s share goes to their heirs
North Carolina Real Estate Broker Exam COMPLETE
QUESTIONS AND DETAILED SOLUTIONS LATEST
UPDATE THIS YEAR-JUST RELEASED
Summarized Exam Coverage – NC Real Estate Broker Exam
The exam is divided into a National section (general real estate principles) and a State section (NC-
specific laws and practices) . Topics include: Property Ownership, Land Use Controls, Law of Agency, Fair
Housing, Real Estate Contracts, Financing, Closings, Valuation, NC License Law and Commission Rules
(G.S. 93A, 21 NCAC 58), Duties of a Broker-in-Charge, Trust Account Guidelines, and Closing Procedures .
1. A property owner gifts a house to her daughter but retains the right to live there for the rest of her
life. What type of estate does the daughter receive?
A) A life estate
B) A remainder interest
C) A reversionary interest
D) A fee simple absolute
Answer: B – The daughter has a remainder interest; she will take possession after the life estate ends.
2. A broker lists a home and receives an offer at full price. The seller verbally accepts but delays signing.
The buyer revokes the offer. Is there a valid contract?
A) Yes, verbal acceptance is binding in NC for 48 hours
B) No, an offer can be revoked any time before written acceptance
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C) Yes, because the price matched the asking price
D) No, unless the buyer paid earnest money
Answer: B – An offer is revocable until it has been accepted in writing by the seller.
3. A provisional broker in NC wants to open their own real estate firm. Is this permitted under NC Real
Estate Commission rules?
A) Yes, if they complete 30 hours of post-licensing education
B) Yes, but they must operate under the name of a supervising broker
C) No, a provisional broker cannot be a sole proprietor or Broker-in-Charge
D) No, only attorneys can open firms in North Carolina
Answer: C – Provisional brokers must be supervised. Only a designated Broker-in-Charge can open a
firm .
4. A developer places a restrictive covenant on all lots in a subdivision prohibiting fences. This is an
example of:
A) A public land use control
B) An easement by necessity
C) A private land use restriction
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D) A zoning ordinance
Answer: C – Restrictive covenants are private agreements, typically enforced by homeowners
associations.
5. A tenant signs a lease for 18 months. Under NC law, what type of lease is this regarding its duration?
A) An estate at will
B) A periodic tenancy (month-to-month)
C) A tenancy for years
D) An estate at sufferance
Answer: C – Any lease with a definite start and end date is a "tenancy for years," regardless of duration.
6. A seller accepts an offer, but before closing, the house is destroyed by a tornado. Under common law
and typical NC contract provisions, who bears the loss?
A) The buyer, because they had equitable title
B) The seller, unless the contract states otherwise
C) The insurance company only, no loss to either party
D) Both parties equally share the loss
Answer: B – Risk of loss typically remains with the seller until closing (delivery of deed).
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7. A licensed NC broker is moving to a new brokerage firm. What is the broker’s primary responsibility
regarding the transition of ongoing transactions?
A) All files must be destroyed immediately
B) The former Broker-in-Charge must handle all remaining details
C) The broker must notify clients and facilitate the transfer of files
D) The broker must wait until all current transactions close before moving
Answer: C – Brokers must protect client interests, often requiring client consent to move files .
8. A property sold for $300,000. The tax rate is $0.75 per $100 of assessed value. If the property is
assessed at 80% of value, what is the annual property tax?
A) $1,800
B) $2,250
C) $1,740
D) $2,400
Answer: A – Assessed value: $300,000 × 0.80 = $240,000. Tax = ($240,) × $0.75 = $1,800.
9. A couple holds title as "tenants by the entirety." If one spouse dies, what happens to the property?
A) The deceased spouse’s share goes to their heirs
