NORTH CAROLINA REAL ESTATE PREMIUM EXAM
150 QUESTIONS & CORRECT ANSWERS LATEST 2025
Which agency relationship is commonly used in North Carolina real estate
transactions, where the agent owes fiduciary duties to the client such as loyalty,
confidentiality, obedience, disclosure, accounting, and reasonable care and
diligence?
A. Dual Agency
B. Seller's Agent
C. Buyer's Agent
D. Transaction Broker
Transaction broker
What is the maximum amount of time a landlord in North Carolina has to return a
tenant's security deposit after the termination of the lease?
A. 10 days
B. 30 days
C. 45 days
D. 60 days
30 days
Which of the following statements is true regarding North Carolina's homestead
exemption for real property?
A. There is no homestead exemption in North Carolina
B. The homestead exemption is unlimited for primary residences.
C. The homestead exemption is capped at $35,000 for primary residences.
D. The homestead exemption only applies to rental properties.
The homestead exemption is capped at $35,000 for primary residences
In North Carolina, what is the maximum interest rate that can be charged on a real
estate mortgage loan?
A. 8%
,B. 10%
C. 16%
D. There is no maximum interest rate limit.
8%
Which entity is responsible for regulating real estate licensing and enforcing real
estate laws in North Carolina?
A. North Carolina Real Estate Commission
B. North Carolina Department of Commerce
C. North Carolina Association of Realtors
D. North Carolina Board of Realtors
North Carolina Real Estate Commission
How many days does a seller have to provide a Residential Property Disclosure
Statement to a buyer in North Carolina?
A. 5 days
B. 10 days
C. 15 days
D. 30 days
What is the legal age requirement to obtain a real estate license in North Carolina?
A. 16 years old
B. 18 years old
C. 21 years old
D. 25 years old
18 years old
In North Carolina, what type of foreclosure process is primarily used to foreclose
on real property?
A. Non-judicial foreclosure
B. Judicial foreclosure
C. Short sale
D. Deed in lieu of foreclosure
Non-judicial foreclosure
Which of the following is NOT a requirement to obtain a real estate license in
North Carolina?
A. Passing a criminal background check
,B. Completing a certain number of pre-licensing education hours
C. Having a high school diploma or equivalent
D. Passing a physical fitness test
Passing a physical fitness test
What is the maximum amount of time allowed for a landlord to give notice of
termination of tenancy to a tenant-at will in North Carolina?
A. 3 days
B. 7 days
C. 14 days
D. 30 days
7 days
Andy's Arcade has been in business in the same location for 15 years. The city
recently rezoned the area, no longer allowing commercial usage. Soon after the
rezoning, Andy's suffered a devastating fire and the arcade was a total loss. What
will Andy need to obtain from the city in order to rebuild the arcade in the same
location?
A. Andy can not rebuild in the same location
B. Andy will need to obtain a variance
C. Andy will only need a building permit
D. Andy must get approval from the EPA
Andy will need to obtain a variance
The city of Brownwood plans to build a new water treatment facility but the land
that is required is privately owned. Eminent domain allows the city to:
A. Take possession of the land with no compensation to the property owner.
B. Do nothing, the City does not own the land and they cannot take it.
C. Ask the property owner to donate the land
D. Take possession of the land against the owner's wishes, yet the owner must be
compensated.
Take possession of the land against the owner's wishes, yet the owner must be
compensated.
Mr. Thompson passed away. He had no heirs and left no will or instructions as to
whom he wanted to leave his property to. In this situation, his property will revert
back to the state under the doctrine of:
, A. Testate
B. Escheat
C. Intestate
D. Eminent Domain
escheat
Agent Brook is preparing for a listing appointment and has gathered information to
prepare a report of recent market data for the seller to review. The report agents
reconcile to obtain a reasonable list price for a property based on current listings,
recent sales, and expired would be called:
A. Comparable Marketing Analytics (CMA)
B. Broker Price Opinion (BPO)
C. Comparative Market Analysis (CMA)
D. Agent Market Analysis (AMA)
Comparative Market Analysis
Paul owns an older residential property in an area now zoned for commercial use.
Paul decides to renovate the home into a laundry mat. The change in the properties
functionality for Paul's financial gain is an example of what:
A. Highest and Best Use
B. Substitution
C. Assemblage
D. Conformity
Highest and Best Use
Jon's Tire Store is being built across the street from Big Bob's Tires. What
appraisal principle describes this situation?
A. Substitution
B. Plottage
C. Competition
D. Progression
Competition
Buyer Sam purchased a run down residential home in a
neighborhood with many nice well kept properties. Sam
intends to renovate the home and resell it for a profit.
Considering the nicer homes in the neighborhood help
150 QUESTIONS & CORRECT ANSWERS LATEST 2025
Which agency relationship is commonly used in North Carolina real estate
transactions, where the agent owes fiduciary duties to the client such as loyalty,
confidentiality, obedience, disclosure, accounting, and reasonable care and
diligence?
A. Dual Agency
B. Seller's Agent
C. Buyer's Agent
D. Transaction Broker
Transaction broker
What is the maximum amount of time a landlord in North Carolina has to return a
tenant's security deposit after the termination of the lease?
A. 10 days
B. 30 days
C. 45 days
D. 60 days
30 days
Which of the following statements is true regarding North Carolina's homestead
exemption for real property?
A. There is no homestead exemption in North Carolina
B. The homestead exemption is unlimited for primary residences.
C. The homestead exemption is capped at $35,000 for primary residences.
D. The homestead exemption only applies to rental properties.
The homestead exemption is capped at $35,000 for primary residences
In North Carolina, what is the maximum interest rate that can be charged on a real
estate mortgage loan?
A. 8%
,B. 10%
C. 16%
D. There is no maximum interest rate limit.
8%
Which entity is responsible for regulating real estate licensing and enforcing real
estate laws in North Carolina?
A. North Carolina Real Estate Commission
B. North Carolina Department of Commerce
C. North Carolina Association of Realtors
D. North Carolina Board of Realtors
North Carolina Real Estate Commission
How many days does a seller have to provide a Residential Property Disclosure
Statement to a buyer in North Carolina?
A. 5 days
B. 10 days
C. 15 days
D. 30 days
What is the legal age requirement to obtain a real estate license in North Carolina?
A. 16 years old
B. 18 years old
C. 21 years old
D. 25 years old
18 years old
In North Carolina, what type of foreclosure process is primarily used to foreclose
on real property?
A. Non-judicial foreclosure
B. Judicial foreclosure
C. Short sale
D. Deed in lieu of foreclosure
Non-judicial foreclosure
Which of the following is NOT a requirement to obtain a real estate license in
North Carolina?
A. Passing a criminal background check
,B. Completing a certain number of pre-licensing education hours
C. Having a high school diploma or equivalent
D. Passing a physical fitness test
Passing a physical fitness test
What is the maximum amount of time allowed for a landlord to give notice of
termination of tenancy to a tenant-at will in North Carolina?
A. 3 days
B. 7 days
C. 14 days
D. 30 days
7 days
Andy's Arcade has been in business in the same location for 15 years. The city
recently rezoned the area, no longer allowing commercial usage. Soon after the
rezoning, Andy's suffered a devastating fire and the arcade was a total loss. What
will Andy need to obtain from the city in order to rebuild the arcade in the same
location?
A. Andy can not rebuild in the same location
B. Andy will need to obtain a variance
C. Andy will only need a building permit
D. Andy must get approval from the EPA
Andy will need to obtain a variance
The city of Brownwood plans to build a new water treatment facility but the land
that is required is privately owned. Eminent domain allows the city to:
A. Take possession of the land with no compensation to the property owner.
B. Do nothing, the City does not own the land and they cannot take it.
C. Ask the property owner to donate the land
D. Take possession of the land against the owner's wishes, yet the owner must be
compensated.
Take possession of the land against the owner's wishes, yet the owner must be
compensated.
Mr. Thompson passed away. He had no heirs and left no will or instructions as to
whom he wanted to leave his property to. In this situation, his property will revert
back to the state under the doctrine of:
, A. Testate
B. Escheat
C. Intestate
D. Eminent Domain
escheat
Agent Brook is preparing for a listing appointment and has gathered information to
prepare a report of recent market data for the seller to review. The report agents
reconcile to obtain a reasonable list price for a property based on current listings,
recent sales, and expired would be called:
A. Comparable Marketing Analytics (CMA)
B. Broker Price Opinion (BPO)
C. Comparative Market Analysis (CMA)
D. Agent Market Analysis (AMA)
Comparative Market Analysis
Paul owns an older residential property in an area now zoned for commercial use.
Paul decides to renovate the home into a laundry mat. The change in the properties
functionality for Paul's financial gain is an example of what:
A. Highest and Best Use
B. Substitution
C. Assemblage
D. Conformity
Highest and Best Use
Jon's Tire Store is being built across the street from Big Bob's Tires. What
appraisal principle describes this situation?
A. Substitution
B. Plottage
C. Competition
D. Progression
Competition
Buyer Sam purchased a run down residential home in a
neighborhood with many nice well kept properties. Sam
intends to renovate the home and resell it for a profit.
Considering the nicer homes in the neighborhood help
