NORTH CAROLINA REAL ESTATE BROKER EXAM – PRACTICE QUESTIONS
AND CORRECT ANSWERS (VERIFIED ANSWERS) PLUS RATIONALES 2026
Q&A | INSTANT DOWNLOAD PDF.
Core Domains
Real Estate Concepts and Terms
Property Ownership and Interests
Transfer of Title and Land Description
North Carolina License Law and Commission Rules
Agency Relationships and Duties
Real Estate Finance and Valuation
Property Management and Landlord-Tenant Laws
Environmental Issues and Land Use Controls
Closing Procedures and Closing Disclosure Calculations
Introduction
,The purpose of this assessment is to prepare candidates for the North Carolina Real
Estate Broker Licensing Examination by simulating the rigor and scope of the actual
test. This exam evaluates essential skills and knowledge across national real estate
principles and state-specific laws. Candidates are assessed on their understanding of
legal requirements, ethical standards, and practical brokerage activities. The
structure utilizes multiple-choice and complex scenario-based questions to mirror
professional challenges. With a heavy emphasis on real-world application and critical
decision-making, this tool ensures that prospective brokers can navigate North
Carolina's unique regulatory landscape and protect the public interest during real
estate transactions.
1. Which of the following is considered a "material fact" that a North Carolina
broker must disclose even if the principal directs them not to?
A. A previous occupant was diagnosed with HIV/AIDS.
B. The property was the site of a highly publicized crime.
C. The street is scheduled to be widened into a four-lane highway next year.
D. The seller is facing immediate foreclosure and needs a quick sale.
🟢 Correct answer: C. The street is scheduled to be widened into a four-lane
highway next year.
,🔴 RATIONALE: Under NC License Law, brokers must disclose material facts, which
include external factors that may affect the property's value or use, such as planned
infrastructure changes. HIV/AIDS status is protected under Fair Housing, and seller
motivation is generally confidential unless it affects the ability to close.
2. A broker-in-charge (BIC) must maintain trust account records for how many
years?
A. One year
B. Three years
C. Five years
D. Seven years
🟢 Correct answer: B. Three years
🔴 RATIONALE: North Carolina Real Estate Commission (NCREC) rules require that
all records, including trust account ledgers and bank statements, be retained for three
years from the date of the conclusion of the transaction or the disbursement of funds.
3. Under the North Carolina Residential Property Disclosure Act, which of the
following is true regarding the "Mineral and Oil and Gas Rights Mandatory
Disclosure Statement"?
, A. It is only required for new construction.
B. The seller may opt out by checking "No Representation."
C. It must be provided to the buyer prior to the first offer.
D. It is not required for vacant land sales.
🟢 Correct answer: C. It must be provided to the buyer prior to the first offer.
🔴 RATIONALE: Unlike the standard property disclosure, the MOG disclosure is
required for most residential transfers, including new construction, and must be
provided before the buyer makes an offer to ensure they are aware of any severed
subsurface rights.
4. A property measures 450 feet by 600 feet. How many acres does this parcel
contain?
A. 4.2 acres
B. 5.5 acres
C. 6.2 acres
D. 7.1 acres
🟢 Correct answer: C. 6.2 acres
🔴 RATIONALE: Calculate the square footage (450 x 600 = 270,000 sq. ft.). Divide
AND CORRECT ANSWERS (VERIFIED ANSWERS) PLUS RATIONALES 2026
Q&A | INSTANT DOWNLOAD PDF.
Core Domains
Real Estate Concepts and Terms
Property Ownership and Interests
Transfer of Title and Land Description
North Carolina License Law and Commission Rules
Agency Relationships and Duties
Real Estate Finance and Valuation
Property Management and Landlord-Tenant Laws
Environmental Issues and Land Use Controls
Closing Procedures and Closing Disclosure Calculations
Introduction
,The purpose of this assessment is to prepare candidates for the North Carolina Real
Estate Broker Licensing Examination by simulating the rigor and scope of the actual
test. This exam evaluates essential skills and knowledge across national real estate
principles and state-specific laws. Candidates are assessed on their understanding of
legal requirements, ethical standards, and practical brokerage activities. The
structure utilizes multiple-choice and complex scenario-based questions to mirror
professional challenges. With a heavy emphasis on real-world application and critical
decision-making, this tool ensures that prospective brokers can navigate North
Carolina's unique regulatory landscape and protect the public interest during real
estate transactions.
1. Which of the following is considered a "material fact" that a North Carolina
broker must disclose even if the principal directs them not to?
A. A previous occupant was diagnosed with HIV/AIDS.
B. The property was the site of a highly publicized crime.
C. The street is scheduled to be widened into a four-lane highway next year.
D. The seller is facing immediate foreclosure and needs a quick sale.
🟢 Correct answer: C. The street is scheduled to be widened into a four-lane
highway next year.
,🔴 RATIONALE: Under NC License Law, brokers must disclose material facts, which
include external factors that may affect the property's value or use, such as planned
infrastructure changes. HIV/AIDS status is protected under Fair Housing, and seller
motivation is generally confidential unless it affects the ability to close.
2. A broker-in-charge (BIC) must maintain trust account records for how many
years?
A. One year
B. Three years
C. Five years
D. Seven years
🟢 Correct answer: B. Three years
🔴 RATIONALE: North Carolina Real Estate Commission (NCREC) rules require that
all records, including trust account ledgers and bank statements, be retained for three
years from the date of the conclusion of the transaction or the disbursement of funds.
3. Under the North Carolina Residential Property Disclosure Act, which of the
following is true regarding the "Mineral and Oil and Gas Rights Mandatory
Disclosure Statement"?
, A. It is only required for new construction.
B. The seller may opt out by checking "No Representation."
C. It must be provided to the buyer prior to the first offer.
D. It is not required for vacant land sales.
🟢 Correct answer: C. It must be provided to the buyer prior to the first offer.
🔴 RATIONALE: Unlike the standard property disclosure, the MOG disclosure is
required for most residential transfers, including new construction, and must be
provided before the buyer makes an offer to ensure they are aware of any severed
subsurface rights.
4. A property measures 450 feet by 600 feet. How many acres does this parcel
contain?
A. 4.2 acres
B. 5.5 acres
C. 6.2 acres
D. 7.1 acres
🟢 Correct answer: C. 6.2 acres
🔴 RATIONALE: Calculate the square footage (450 x 600 = 270,000 sq. ft.). Divide
