CONTRACTS & CLOSINGS ACTUAL EXAM
QUESTIONS WITH DETAILED VERIFIED ANSWERS
| NORTH CAROLINA REAL ESTATE POST-
LICENSING STUDY GUIDE
NC POST LICENSING 302 EXAM 2026 | CONTRACTS & CLOSINGS
• This study guide contains 300 actual exam-style questions with detailed verified
answers covering all key topics tested in the NC Real Estate Post-Licensing 302
Contracts & Closings course.
• Use this material by reading each question carefully, selecting your answer before
checking the highlighted correct option and EXPERT RATIONALE — this active
recall method significantly boosts retention and exam readiness.
QUESTION 1
In North Carolina, which form is the most commonly used contract for the
purchase and sale of residential real property?
A) The Offer to Purchase and Contract — Long Form
B) The Agreement of Sale Form
C) The NC Standard Offer to Purchase and Contract (Form 2-T)
D) The Residential Purchase Agreement
E) The Buyer Representation Contract
CORRECT ANSWER: C) The NC Standard Offer to Purchase and Contract
(Form 2-T)
EXPERT RATIONALE: Form 2-T, jointly approved by the NC Bar Association and
NC REALTORS®, is the standard residential contract used across North Carolina for
most residential transactions.
QUESTION 2
,Which of the following is NOT an essential element of a valid real estate
contract in North Carolina?
A) Offer and acceptance
B) Consideration
C) Notarization
D) Competent parties
E) Legal purpose
CORRECT ANSWER: C) Notarization
EXPERT RATIONALE: Notarization is not required for a real estate contract to be
valid and binding. The essential elements are offer and acceptance, consideration,
competent parties, legal purpose, and in writing for enforceability under the Statute
of Frauds.
QUESTION 3
What is the due diligence fee in a North Carolina real estate transaction?
A) A fee paid to the listing agent at closing
B) A non-refundable fee paid by the buyer directly to the seller for the right to
conduct due diligence
C) A refundable deposit held in escrow by the broker
D) A fee paid to the attorney for title search
E) A fee charged by the lender for loan processing
CORRECT ANSWER: B) A non-refundable fee paid by the buyer directly to
the seller for the right to conduct due diligence
EXPERT RATIONALE: In NC, the due diligence fee is paid directly to the seller
and is non-refundable unless the seller defaults. It compensates the seller for
taking the property off the market during the due diligence period.
,QUESTION 4
During the due diligence period in North Carolina, the buyer may terminate
the contract for:
A) Only inspection-related reasons
B) Only financing-related reasons
C) Any reason or no reason at all
D) Only reasons approved by the seller
E) Only title defect reasons
CORRECT ANSWER: C) Any reason or no reason at all
EXPERT RATIONALE: The NC due diligence period allows the buyer to terminate
the contract for any reason whatsoever before the due diligence deadline, making it
a highly buyer-protective provision.
QUESTION 5
What happens to the earnest money deposit if the buyer terminates the
contract before the due diligence deadline?
A) It is forfeited to the seller
B) It is retained by the listing broker
C) It is returned to the buyer
D) It is split between buyer and seller
E) It is held pending arbitration
CORRECT ANSWER: C) It is returned to the buyer
EXPERT RATIONALE: If the buyer terminates within the due diligence period,
the earnest money deposit is returned to the buyer. Only the non-refundable due
diligence fee remains with the seller.
, QUESTION 6
Who holds the earnest money deposit in a typical NC residential transaction?
A) The seller's attorney
B) The buyer's lender
C) The listing or buyer's agent's brokerage (escrow agent)
D) The closing attorney
E) The NC Real Estate Commission
CORRECT ANSWER: C) The listing or buyer's agent's brokerage (escrow
agent)
EXPERT RATIONALE: The earnest money is typically held in a trust account by
the brokerage acting as escrow agent, as designated in the contract.
QUESTION 7
Under NC law, how quickly must earnest money be deposited into a trust
account after a contract is accepted?
A) Within 24 hours
B) Within 3 banking days
C) Within 5 business days
D) By the next business day after acceptance
E) At closing
CORRECT ANSWER: B) Within 3 banking days
EXPERT RATIONALE: NC Real Estate Commission rules require that earnest
money be deposited into a trust account within 3 banking days of contract
acceptance.