North Carolina Real Estate Broker
Examination – State Law Portion
Practice Questions And Correct Answers
(Verified Answers) Plus Rationales
1. What is the primary law governing real estate licenses in North
Carolina?
A. North Carolina Fair Housing Act
B. North Carolina Real Estate License Law
C. North Carolina Zoning Law
D. North Carolina Property Tax Act
Answer: B. North Carolina Real Estate License Law
Rationale: The North Carolina Real Estate License Law establishes licensing
requirements, duties, and regulations for real estate brokers and firms.
, 2. Who enforces the North Carolina Real Estate License Law?
A. North Carolina Department of Commerce
B. North Carolina Attorney General
C. North Carolina Real Estate Commission (NCREC)
D. North Carolina Board of Realtors
Answer: C. North Carolina Real Estate Commission (NCREC)
Rationale: The NCREC is the regulatory body responsible for licensing,
enforcement, and disciplinary actions for real estate professionals.
3. How often must a North Carolina broker renew their license?
A. Annually
B. Every 2 years
C. Every 2 years on June 30
D. Every 5 years
Answer: C. Every 2 years on June 30
Rationale: North Carolina brokers renew their licenses biennially by June 30,
following the completion of required continuing education.
4. What is the minimum age requirement to obtain a North Carolina
broker license?
A. 16
B. 17
, C. 18
D. 21
Answer: C. 18
Rationale: Applicants must be at least 18 years old to qualify for a real
estate broker license in North Carolina.
5. Which of the following is required for initial broker licensure in North
Carolina?
A. High school diploma
B. Completion of pre-licensing education and passing the licensing
exam
C. College degree
D. 1 year of work experience
Answer: B. Completion of pre-licensing education and passing the licensing
exam
Rationale: North Carolina requires completion of 75 hours of broker pre-
licensing courses and successful completion of the state exam.
6. What is the maximum civil penalty per violation that the NCREC can
impose?
A. $500
B. $1,000
, C. $1,000 per violation
D. $5,000
Answer: C. $1,000 per violation
Rationale: The NCREC can impose civil penalties up to $1,000 for violations
of the Real Estate License Law.
7. Which of the following must a North Carolina broker disclose to a
client?
A. Personal financial goals
B. All known material facts affecting property value
C. Previous offers made on the property
D. Other brokers’ commission rates
Answer: B. All known material facts affecting property value Rationale:
Brokers are legally obligated to disclose all material facts that could
affect the value or desirability of a property.
8. A broker’s trust account is used to hold:
A. Broker’s operating funds
B. Client or customer funds
C. Taxes
D. Marketing expenses
Examination – State Law Portion
Practice Questions And Correct Answers
(Verified Answers) Plus Rationales
1. What is the primary law governing real estate licenses in North
Carolina?
A. North Carolina Fair Housing Act
B. North Carolina Real Estate License Law
C. North Carolina Zoning Law
D. North Carolina Property Tax Act
Answer: B. North Carolina Real Estate License Law
Rationale: The North Carolina Real Estate License Law establishes licensing
requirements, duties, and regulations for real estate brokers and firms.
, 2. Who enforces the North Carolina Real Estate License Law?
A. North Carolina Department of Commerce
B. North Carolina Attorney General
C. North Carolina Real Estate Commission (NCREC)
D. North Carolina Board of Realtors
Answer: C. North Carolina Real Estate Commission (NCREC)
Rationale: The NCREC is the regulatory body responsible for licensing,
enforcement, and disciplinary actions for real estate professionals.
3. How often must a North Carolina broker renew their license?
A. Annually
B. Every 2 years
C. Every 2 years on June 30
D. Every 5 years
Answer: C. Every 2 years on June 30
Rationale: North Carolina brokers renew their licenses biennially by June 30,
following the completion of required continuing education.
4. What is the minimum age requirement to obtain a North Carolina
broker license?
A. 16
B. 17
, C. 18
D. 21
Answer: C. 18
Rationale: Applicants must be at least 18 years old to qualify for a real
estate broker license in North Carolina.
5. Which of the following is required for initial broker licensure in North
Carolina?
A. High school diploma
B. Completion of pre-licensing education and passing the licensing
exam
C. College degree
D. 1 year of work experience
Answer: B. Completion of pre-licensing education and passing the licensing
exam
Rationale: North Carolina requires completion of 75 hours of broker pre-
licensing courses and successful completion of the state exam.
6. What is the maximum civil penalty per violation that the NCREC can
impose?
A. $500
B. $1,000
, C. $1,000 per violation
D. $5,000
Answer: C. $1,000 per violation
Rationale: The NCREC can impose civil penalties up to $1,000 for violations
of the Real Estate License Law.
7. Which of the following must a North Carolina broker disclose to a
client?
A. Personal financial goals
B. All known material facts affecting property value
C. Previous offers made on the property
D. Other brokers’ commission rates
Answer: B. All known material facts affecting property value Rationale:
Brokers are legally obligated to disclose all material facts that could
affect the value or desirability of a property.
8. A broker’s trust account is used to hold:
A. Broker’s operating funds
B. Client or customer funds
C. Taxes
D. Marketing expenses
