North Carolina Escrow & Title
Practice Questions & Answers (2026)
Escrow, title, and closing questions on the North Carolina exam test how real estate transactions are closed, how title is transferred, and what happens at settlement. North Carolina uses title companies or settlement agents to handle closings, and candidates must understand the closing process, settlement statement, and title insurance requirements under North Carolina law. Title insurance, title searches, and the difference between standard and extended coverage policies are tested, as are the specific closing costs that are customarily paid by buyers vs. sellers under North Carolina practice.
North Carolina Exam Study Resources
Everything you need to pass — in one place.
North Carolina Escrow & Title — Practice Questions & Answers
113 questions on Escrow & Title from the North Carolina real estate question bank. First 10 are free — sign up to unlock all 113.
Q1. In North Carolina, who typically handles real estate closings?
Explanation
North Carolina is an 'attorney closing state.' Real estate closings must be conducted by a licensed North Carolina attorney, who certifies title and disburses funds.
Q2. A North Carolina attorney issues a title opinion (certificate of title) to:
Explanation
A title opinion (certificate of title) is the attorney's professional opinion, based on the title search, about the condition of the title and any known defects or encumbrances.
Q3. In North Carolina, trust account funds (earnest money) must be deposited within:
Explanation
North Carolina rules require that trust account funds be deposited within 3 banking days of receipt once the contract is fully executed.
Q4. Which of the following would appear as a buyer's debit on a closing disclosure?
Explanation
The sales price is a debit (charge) to the buyer and a credit to the seller on the closing disclosure. Debits are what the buyer owes; credits are what the seller receives.
Q5. In North Carolina, real estate closings are typically conducted by:
Explanation
North Carolina is an attorney-closing state, meaning a licensed attorney must conduct the closing and provide the opinion of title.
Q6. An owner's title insurance policy in North Carolina protects:
Explanation
An owner's title insurance policy protects the buyer against losses from title defects, liens, or encumbrances that existed prior to their ownership and were not discovered during the title search.
Q7. A lender's title insurance policy (mortgagee's policy) in North Carolina:
Explanation
A lender's title insurance policy protects the lender's interest (the loan amount) against title defects. Lenders almost always require this coverage as a condition of the loan.
Q8. The chain of title in North Carolina refers to:
Explanation
The chain of title is the sequential history of ownership transfers and encumbrances recorded in the public record for a specific parcel of real property.
Q9. A 'cloud on title' in North Carolina is best described as:
Explanation
A cloud on title is any outstanding claim, lien, or encumbrance that casts doubt on the owner's clear title and may need to be resolved before the property can be sold.
Q10. In North Carolina, a deed must be recorded in the:
Explanation
Deeds in North Carolina must be recorded with the Register of Deeds in the county where the real property is located to provide constructive notice of ownership.
Q11. A general warranty deed in North Carolina provides the buyer with:
103 more Escrow & Title questions
Create a free account to unlock all 113 North Carolina Escrow & Title 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