NC Post Licensing 302 Elite Prep Guide:
Detailed Answer Key, Scenario-Based
Practice Questions & Exam Review Toolkit
Topic 5: Property Management,
Landlord/Tenant Law, Leases, and NC
Specific Laws
Q1. Does a property manager need a real estate license in North Carolina?
A) No, property management is exempt from licensing.
B) Yes, if the manager leases or rents property for others for compensation.
C) Only if the property has more than 4 units.
D) Only if the manager collects rent.
✔ Correct Answer: B
*NC G.S. 93A-2 requires a license for anyone who, for compensation, leases or rents real estate
for another. Property management falls under this.*
Q2. A property owner hires a company to manage their 10 rental units. The company's
employee shows units, collects rent, and arranges repairs. Does the employee need a license?
A) No, because they work for a management company.
B) Yes, because they are performing real estate brokerage activities for compensation.
C) Only if they negotiate leases.
D) Only if they handle security deposits.
✔ Correct Answer: B
Any person who performs leasing or rental activities for another for compensation must be
licensed.
Q3. What is the exception to the licensing requirement for on-site property managers?
A) No exception exists.
B) A resident manager of an apartment complex with 10 or fewer units who lives on-site and
does not receive compensation beyond rent reduction may be exempt under certain conditions.
,C) All on-site managers are exempt.
D) Only commercial property managers are exempt.
✔ Correct Answer: B
NC Real Estate Commission rules provide a limited exemption for resident managers of small
properties (10 or fewer units) whose only compensation is rent reduction.
Q4. Under the NC Residential Rental Agreements Act (RRAA), a security deposit for a month-to-
month tenancy may not exceed:
A) One month's rent
B) Two weeks' rent
C) One and one-half months' rent
D) Two months' rent
✔ Correct Answer: C
*For month-to-month tenancies, the security deposit cannot exceed 1.5 months' rent. For
week-to-week, it cannot exceed 2 weeks' rent.*
Q5. Under the NC Residential Rental Agreements Act, a security deposit for a fixed-term lease
(e.g., 12 months) may not exceed:
A) One month's rent
B) Two months' rent
C) One and one-half months' rent
D) Three months' rent
✔ Correct Answer: B
*For a fixed-term lease, the security deposit cannot exceed 2 months' rent.*
Q6. Within how many days of lease termination must a landlord return the security deposit or
provide an itemized statement of deductions?
A) 15 days
B) 30 days
C) 45 days
D) 60 days
, ✔ Correct Answer: B
NC law requires the landlord to return the deposit or provide an accounting within 30 days of
the tenant's surrender of the premises.
Q7. If a landlord fails to return the security deposit or provide an accounting within 30 days, the
tenant may recover:
A) Only the original deposit.
B) The deposit plus damages equal to the deposit (double damages).
C) The deposit plus attorney fees only.
D) Nothing additional.
✔ Correct Answer: B
NC law permits the tenant to recover the deposit plus an additional amount equal to the deposit
(double the original) for bad faith failure to return.
Q8. A tenant's security deposit is $1,000. The landlord, in bad faith, fails to return it. The tenant
may recover up to:
A) $1,000
B) $1,500
C) $2,000
D) $3,000
✔ Correct Answer: C
*The tenant may recover the original $1,000 plus $1,000 in damages = $2,000 total.*
Q9. What deductions may a landlord take from a security deposit?
A) Any deduction the landlord wants.
B) Unpaid rent, damages beyond normal wear and tear, and other breaches of the lease.
C) Only unpaid rent.
D) Only cleaning fees.
✔ Correct Answer: B
Deductions must be for actual damages (excluding normal wear and tear), unpaid rent, or other
lease violations.
Detailed Answer Key, Scenario-Based
Practice Questions & Exam Review Toolkit
Topic 5: Property Management,
Landlord/Tenant Law, Leases, and NC
Specific Laws
Q1. Does a property manager need a real estate license in North Carolina?
A) No, property management is exempt from licensing.
B) Yes, if the manager leases or rents property for others for compensation.
C) Only if the property has more than 4 units.
D) Only if the manager collects rent.
✔ Correct Answer: B
*NC G.S. 93A-2 requires a license for anyone who, for compensation, leases or rents real estate
for another. Property management falls under this.*
Q2. A property owner hires a company to manage their 10 rental units. The company's
employee shows units, collects rent, and arranges repairs. Does the employee need a license?
A) No, because they work for a management company.
B) Yes, because they are performing real estate brokerage activities for compensation.
C) Only if they negotiate leases.
D) Only if they handle security deposits.
✔ Correct Answer: B
Any person who performs leasing or rental activities for another for compensation must be
licensed.
Q3. What is the exception to the licensing requirement for on-site property managers?
A) No exception exists.
B) A resident manager of an apartment complex with 10 or fewer units who lives on-site and
does not receive compensation beyond rent reduction may be exempt under certain conditions.
,C) All on-site managers are exempt.
D) Only commercial property managers are exempt.
✔ Correct Answer: B
NC Real Estate Commission rules provide a limited exemption for resident managers of small
properties (10 or fewer units) whose only compensation is rent reduction.
Q4. Under the NC Residential Rental Agreements Act (RRAA), a security deposit for a month-to-
month tenancy may not exceed:
A) One month's rent
B) Two weeks' rent
C) One and one-half months' rent
D) Two months' rent
✔ Correct Answer: C
*For month-to-month tenancies, the security deposit cannot exceed 1.5 months' rent. For
week-to-week, it cannot exceed 2 weeks' rent.*
Q5. Under the NC Residential Rental Agreements Act, a security deposit for a fixed-term lease
(e.g., 12 months) may not exceed:
A) One month's rent
B) Two months' rent
C) One and one-half months' rent
D) Three months' rent
✔ Correct Answer: B
*For a fixed-term lease, the security deposit cannot exceed 2 months' rent.*
Q6. Within how many days of lease termination must a landlord return the security deposit or
provide an itemized statement of deductions?
A) 15 days
B) 30 days
C) 45 days
D) 60 days
, ✔ Correct Answer: B
NC law requires the landlord to return the deposit or provide an accounting within 30 days of
the tenant's surrender of the premises.
Q7. If a landlord fails to return the security deposit or provide an accounting within 30 days, the
tenant may recover:
A) Only the original deposit.
B) The deposit plus damages equal to the deposit (double damages).
C) The deposit plus attorney fees only.
D) Nothing additional.
✔ Correct Answer: B
NC law permits the tenant to recover the deposit plus an additional amount equal to the deposit
(double the original) for bad faith failure to return.
Q8. A tenant's security deposit is $1,000. The landlord, in bad faith, fails to return it. The tenant
may recover up to:
A) $1,000
B) $1,500
C) $2,000
D) $3,000
✔ Correct Answer: C
*The tenant may recover the original $1,000 plus $1,000 in damages = $2,000 total.*
Q9. What deductions may a landlord take from a security deposit?
A) Any deduction the landlord wants.
B) Unpaid rent, damages beyond normal wear and tear, and other breaches of the lease.
C) Only unpaid rent.
D) Only cleaning fees.
✔ Correct Answer: B
Deductions must be for actual damages (excluding normal wear and tear), unpaid rent, or other
lease violations.
