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.

Practice Questions

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?

A.Buyer agency
B.Seller agency
C.Designated dual agency
D.Undisclosed dual agency

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:

A.Must withdraw from representing one party
B.May represent both the buyer and seller, but with reduced duties to both
C.Must refer one party to another broker
D.Has no fiduciary duties to either party

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?

A.Loyalty to the seller's interests
B.Loyalty, confidentiality, disclosure, obedience, reasonable care, and accounting
C.Only disclosure of material facts
D.Only loyalty and confidentiality

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:

A.Nothing — all information is confidential
B.Only the listing price
C.Material facts about the property that could affect the buyer's decision
D.The seller's reason for selling

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:

A.A broker represents both parties without disclosure
B.A firm designates one affiliated broker to represent the seller and another to represent the buyer
C.An agent refers a client to another firm
D.A broker works without any agency relationship

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?

A.The buyer agency agreement
B.The listing agreement
C.The Working with Real Estate Agents disclosure
D.The offer to purchase

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?

A.Only at closing
B.At first substantial contact
C.After an offer is accepted
D.Only if the buyer requests it

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:

A.Mortgage financing options
B.The different types of agency relationships available
C.Closing cost calculations
D.Property tax appeal procedures

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?

A.Loyalty and confidentiality
B.Disclosure of all material facts
C.Negotiating the lowest price for the buyer
D.Presenting only the seller's counteroffer

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:

A.One broker represents both buyer and seller
B.The BIC designates different brokers in the same firm to represent buyer and seller separately
C.A broker is designated by NCREC to handle a transaction
D.An attorney is designated to oversee the closing

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:

A.Loyalty
B.Confidentiality
🔒

105 more Agency questions

Create a free account to unlock all 115 North Carolina Agency questions with full explanations.

Free account · No credit card · Instant access to 25 questions

Ready to take the full exam? Start free.

25 free questions · No signup · Instant access to all North Carolina topics