North Carolina Practice TestProperty Management

North Carolina Property Management
Practice Questions & Answers (2026)

Property management questions on the North Carolina exam cover both the practical aspects of managing rental properties and the landlord-tenant law specific to North Carolina. The North Carolina Real Estate Commission (NCREC) tests security deposit limits, required notice periods for entry and termination, habitability standards, and the property manager's fiduciary duties. North Carolina's landlord-tenant law has specific provisions — including notice requirements and tenant protections — that differ from what national study materials cover. These questions often involve scenarios where a property manager must navigate competing obligations to the owner-client and the tenant.

Practice Questions

North Carolina Property Management — Practice Questions & Answers

149 questions on Property Management from the North Carolina real estate question bank. First 10 are free — sign up to unlock all 149.

Q1. In North Carolina, a property manager who collects rent and manages property for others must hold:

A.A property management certificate from the NCREC
B.A real estate broker's license
C.A general contractor's license
D.A business entity license from the Secretary of State

Explanation

Property management activities performed for compensation on behalf of others (leasing, collecting rent, managing) require a North Carolina real estate broker's license.

Q2. A property manager's primary fiduciary duty is owed to:

A.The tenants
B.The property owner (principal)
C.The lender with a mortgage on the property
D.The local government

Explanation

As an agent, the property manager owes fiduciary duties of loyalty, care, and obedience to the property owner who employs them.

Q3. In North Carolina, a security deposit for a residential unit may not exceed:

A.One month's rent for month-to-month tenancies; two months for fixed-term leases
B.Two months' rent for month-to-month tenancies; three months for fixed-term leases
C.Three months' rent regardless of lease type
D.There is no limit

Explanation

Under the NC Tenant Security Deposit Act, the maximum security deposit is one month's rent for week-to-week and month-to-month tenancies and two months' rent for longer fixed-term leases.

Q4. How many days does a North Carolina landlord have to return a security deposit after the tenant vacates?

A.14 days
B.30 days
C.45 days
D.60 days

Explanation

Under the NC Tenant Security Deposit Act, landlords must return the deposit (or provide an itemized statement of deductions) within 30 days of the tenant vacating.

Q5. The North Carolina Residential Rental Agreements Act requires landlords to:

A.Offer only year-long leases
B.Maintain the premises in a fit and habitable condition
C.Provide furnished apartments
D.Allow pets in all units

Explanation

The NC Residential Rental Agreements Act creates an implied warranty of habitability requiring landlords to maintain the property in a fit and habitable condition.

Q6. A management agreement between a property manager and owner should include all of the following EXCEPT:

A.Management fee structure
B.Duration of the agreement
C.The manager's personal financial statements
D.Scope of authority granted to the manager

Explanation

A management agreement should outline fees, term, authority, and responsibilities. The manager's personal financial statements are not a required component.

Q7. Gross leases in commercial property management mean:

A.The tenant pays all property expenses directly
B.The landlord pays most or all operating expenses from the base rent
C.The tenant and landlord split all expenses equally
D.The lease amount increases each year by a fixed percentage

Explanation

In a gross lease, the landlord collects a fixed rent and pays most or all operating expenses (taxes, insurance, maintenance) from that rent.

Q8. A triple-net (NNN) lease requires the tenant to pay:

A.Only base rent
B.Base rent plus utilities
C.Base rent plus property taxes, insurance, and maintenance
D.Base rent plus a percentage of gross sales

Explanation

In a triple-net lease, the tenant pays base rent plus the three 'nets': property taxes, building insurance, and maintenance/operating expenses.

Q9. A percentage lease typically found in retail properties requires the tenant to pay:

A.A flat monthly rent with no variable component
B.Base rent plus a percentage of the tenant's gross sales above a threshold
C.Only a percentage of net profits
D.Rent adjusted quarterly by the CPI

Explanation

A percentage lease consists of a minimum base rent plus an additional rent that is a percentage of the tenant's gross sales above a specified breakpoint.

Q10. The purpose of a property management trust account in North Carolina is to:

A.Earn interest for the broker
B.Keep tenant and owner funds separate from the broker's operating funds
C.Serve as the primary operating account for the management firm
D.Hold earnest money deposits only

Explanation

Trust accounts must segregate client funds (security deposits, rents) from the broker's own operating funds to protect client money.

Q11. Under the NC Tenant Security Deposit Act, a landlord may deduct from a security deposit for:

A.Normal wear and tear
B.Tenant's failure to pay rent, damage beyond normal wear and tear, and breach of lease
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