North Carolina Agency
Practice Questions & Answers (2026)
Agency law is one of the most tested subjects on the North Carolina real estate exam, and it's also one of the most misunderstood. The North Carolina Real Estate Commission (NCREC) expects licensees to understand the legal duties owed to clients vs. customers, and the specific timing of required disclosures under North Carolina law. Study these questions carefully — candidates who rely on national agency frameworks and don't account for NC-specific rules are among the most common failures on the state portion.
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North Carolina Agency — Practice Questions & Answers
115 questions on Agency from the North Carolina real estate question bank. First 10 are free — sign up to unlock all 115.
Q1. In North Carolina, which type of agency is prohibited?
Explanation
Undisclosed dual agency is prohibited in North Carolina. If a broker represents both buyer and seller, they must disclose this to both parties and obtain written consent.
Q2. In North Carolina, 'dual agency' with written informed consent means the broker:
Explanation
With written informed consent, a North Carolina broker may represent both buyer and seller in the same transaction as a dual agent. However, the broker's duties to each party are limited.
Q3. A North Carolina buyer's agent owes which of the following fiduciary duties to the buyer?
Explanation
A buyer's agent in North Carolina owes the buyer the full set of fiduciary duties: loyalty, confidentiality, disclosure, obedience, reasonable care, and accounting.
Q4. When a North Carolina broker represents the seller, they must disclose to buyers:
Explanation
Even when representing the seller, a North Carolina broker must disclose known material facts about the property to prospective buyers. This duty cannot be waived.
Q5. Designated agency in North Carolina occurs when:
Explanation
In designated agency, a firm designates one affiliated broker to exclusively represent the seller and another to exclusively represent the buyer. Each designated broker owes full fiduciary duties to their respective client.
Q6. Which document in North Carolina establishes the seller's agency relationship and authorizes the broker to market the property?
Explanation
The listing agreement is the contract between the seller and the listing broker that establishes the seller agency relationship and authorizes the broker to market the property.
Q7. When must a North Carolina licensee provide the 'Working with Real Estate Agents' brochure to a prospective buyer?
Explanation
North Carolina rules require licensees to provide and review the 'Working with Real Estate Agents' (WWREA) brochure with prospective buyers and sellers at first substantial contact.
Q8. The 'Working with Real Estate Agents' brochure in North Carolina explains:
Explanation
The WWREA brochure explains seller's agency, buyer's agency, dual agency, and designated agency so consumers can make an informed choice about representation.
Q9. In North Carolina, a broker who represents the seller owes which duty to the buyer?
Explanation
Even when representing the seller, a North Carolina broker owes the buyer the duty to disclose all material facts about the property.
Q10. Designated agency in North Carolina means:
Explanation
Designated agency allows a firm to designate separate brokers within the same office to represent the buyer and seller, avoiding the conflicts of dual agency.
Q11. A buyer's agent in North Carolina owes the buyer all of the following EXCEPT:
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