North Carolina Real Estate Practice Exam
(Free Questions & Answers)
The North Carolina real estate exam is administered by the North Carolina Real Estate Commission (NCREC) and has a distinctive two-phase licensing structure: new licensees receive a provisional broker's license for the first year, during which they must be supervised by a broker-in-charge. This provisional period and the requirements to remove it are heavily tested. North Carolina also requires real estate firms to obtain a separate firm license — individual licensees cannot practice independently without a firm license — which is unique and frequently tested on the state portion.
Administered by: North Carolina Real Estate Commission (NCREC) · 120 questions · Passing score: 75%
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Updated May 2026 · North Carolina Real Estate Commission (NCREC) exam outline
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Free North Carolina Real Estate Practice Exam Questions
Test your knowledge with these North Carolina real estate practice questions. Each question is based on topics from the North Carolina Real Estate Commission (NCREC) exam and includes detailed explanations.
Q1. Which agency regulates real estate licenses in North Carolina?
Explanation
The North Carolina Real Estate Commission (NCREC) is the state agency responsible for licensing and regulating real estate brokers in North Carolina.
Q2. 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.
Q3. The North Carolina Offer to Purchase and Contract is a standard form approved by:
Explanation
The standard Offer to Purchase and Contract used in North Carolina is a jointly approved form by the North Carolina Bar Association and NC REALTORS.
Q4. A conventional loan is best described as:
Explanation
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as FHA, VA, or USDA. These loans typically require higher credit scores and down payments.
Q5. In North Carolina, a life estate grants the life tenant the right to:
Explanation
A life estate grants the life tenant the right to use, occupy, and enjoy the property during their lifetime. Upon death, the property passes to the remainderman, not to the life tenant's heirs.
Q6. In the sales comparison approach, a positive adjustment to a comparable sale means:
Explanation
A positive adjustment means the comparable is inferior to the subject in a particular feature. Value is added to the comparable to make it equal to the subject. Remember: CBS (Comparable Better, Subtract; Comparable Worse, Add).
Q7. North Carolina's fair housing laws protect all seven federal protected classes plus:
Explanation
North Carolina's state fair housing law protects the same seven classes as federal law (race, color, religion, sex, national origin, familial status, disability) without additional protected classes at the state level.
Q8. 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.
Q9. A listing broker receives a 6% commission on the sale of a $350,000 home. The listing broker splits the commission 50/50 with the selling broker. How much does the listing broker receive?
Explanation
Total commission = $350,000 x 6% = $21,000. Each broker receives $21,000 / 2 = $10,500. To solve this, multiply the relevant values: $350,000 at 6%.. The correct answer is $10,500.. This is a common calculation on the North Carolina real estate exam.
Q10. North Carolina requires disclosure of lead-based paint hazards in residential properties built before:
Explanation
Federal law (and North Carolina practice) requires disclosure of known lead-based paint and lead-based paint hazards in residential properties built before 1978.
Q11. Zoning in North Carolina is primarily a power of:
Explanation
Zoning is a local police power exercised by municipalities and counties under authority delegated by the state through enabling legislation.
Q12. In North Carolina, a property manager who collects rent and manages property for others must hold:
Explanation
Property management activities performed for compensation on behalf of others (leasing, collecting rent, managing) require a North Carolina real estate broker's license.
Q13. How many hours of pre-license education are required to sit for the North Carolina broker license exam?
Explanation
North Carolina requires 75 hours of pre-license education (one 75-hour course) before a candidate may sit for the broker licensing exam.
Q14. 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.
Q15. In North Carolina, the 'due diligence fee' paid at the time of an offer is:
Explanation
In North Carolina, the due diligence fee is non-refundable and paid directly to the seller upon offer acceptance. It compensates the seller for taking the property off the market during the due diligence period.
Q16. Private Mortgage Insurance (PMI) is typically required on conventional loans when the down payment is less than:
Explanation
PMI is typically required on conventional loans when the buyer's down payment is less than 20% of the purchase price. PMI protects the lender if the borrower defaults.
Q17. Which type of deed provides the buyer with the LEAST protection?
Explanation
A quitclaim deed conveys whatever interest the grantor has (if any) with no warranties of title whatsoever. It provides the buyer with the least protection.
Q18. Highest and best use is defined as the use that is:
Explanation
Highest and best use is the legally permissible, physically possible, financially feasible, and maximally productive use that results in the highest property value.
Q19. A property manager refuses to rent to a tenant because they use a wheelchair. Which law is violated?
Explanation
Refusing to rent to someone because they use a wheelchair is discrimination based on disability, which is prohibited by the federal Fair Housing Act.
Q20. 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.
Q21. A property is listed at $425,000. The buyer offers $410,000. If the seller accepts, what is the commission at 5.5%?
Explanation
Commission = $410,000 x 5.5% = $22,550. To solve this, multiply the relevant values: $425,000 and $410,000 at 5.5%.. The correct answer is $22,550.. This is a common calculation on the North Carolina real estate exam.
Q22. Radon is a naturally occurring radioactive gas that typically enters buildings through:
Explanation
Radon enters buildings primarily through cracks, gaps, and openings in the foundation, walls, and floors where the building contacts the soil.
Q23. A nonconforming use in a zoned area means:
Explanation
A nonconforming use is a use that legally existed before a zoning ordinance was enacted or changed and is allowed to continue even though it does not conform to current regulations.
Q24. A property manager's primary fiduciary duty is owed to:
Explanation
As an agent, the property manager owes fiduciary duties of loyalty, care, and obedience to the property owner who employs them.
Q25. How many questions are on the North Carolina real estate broker licensing exam?
Explanation
The North Carolina broker licensing exam contains 120 questions (80 national and 40 state-specific questions).
1,500+ questions · Timed mock exams · Detailed explanations
North Carolina Real Estate Exam — What to Expect
What Is On The North Carolina Real Estate Exam?
The North Carolina real estate salesperson exam is administered by the North Carolina Real Estate Commission (NCREC) and tests both national real estate principles and North Carolina-specific laws and regulations. The exam contains 120 multiple-choice questions, and you must score at least 75% to pass.
The national portion covers topics that apply in every state: property ownership, land use controls, valuation and market analysis, financing, agency law, contracts, leasing and property management, transfer of title, fair housing laws, and real estate calculations. The state portion tests knowledge specific to North Carolina — including regulations set by the North Carolina Real Estate Commission (NCREC), North Carolina agency disclosure requirements, and state-specific contract and closing practices.
Topics covered on the North Carolina exam include: Property Ownership, Agency Law, Contracts, Finance, North Carolina License Law, Fair Housing. Candidates who struggle on the NC exam typically underestimate the state-specific portion — the national content is well-covered by most study materials, but North Carolina law questions require targeted preparation.
Official North Carolina Exam Content Areas
Source: North Carolina Real Estate Commission (NCREC) · Updated June 2026
| Content Area | Questions |
|---|---|
| National Portion — General Real Estate Principles | 80 |
| NC State Portion — NC License Law & Brokerage | 40 |
- ▸NC entry-level license is Provisional Broker — not Salesperson. All exam questions use this term.
- ▸Provisional Brokers must complete 90 post-license hours within 18 months of being licensed
- ▸The NC Real Estate Manual is the official study reference for all NCREC questions
- ▸NC Real Estate Commission (NCREC) is governed by NCGS Chapter 93A — know the statute
- ▸Must score 75% on each portion (national and state) separately — both must be passed independently
- ▸NC requires a Working with Real Estate Agents disclosure be given to buyers at first substantive contact
Practice North Carolina questions by topic — start with North Carolina License Law, Agency, and Contracts to build your foundation, then work through remaining topics.
How Many Questions Are On The North Carolina Exam?
The North Carolina real estate salesperson exam has 120 multiple-choice questions. The exam is divided into a national section covering general real estate principles and a state section covering North Carolina-specific laws administered by the North Carolina Real Estate Commission (NCREC). You have 3.5 hours to complete the exam.
North Carolina Real Estate Exam Passing Score
You need a 75% to pass the North Carolina real estate exam. The first-time pass rate in North Carolina is approximately 57%, which means preparation is essential — most candidates who fail do so because they focused on national content and underestimated the NC-specific portion. Our North Carolina practice exam is built specifically around the North Carolina Real Estate Commission (NCREC) exam outline.
Read our complete North Carolina exam study guide — state-specific topics, 5-week study plan, and what to focus on before exam day.
Most Difficult Topics On The North Carolina Exam
These are the areas where North Carolina candidates most commonly lose points — and a key reason why some states produce harder real estate exams than others.
North Carolina's unique one-year provisional license period requires new brokers to work under a broker-in-charge. The requirements, supervision rules, and process to remove the provisional status are heavily tested on the NC state exam.
North Carolina requires a separate real estate firm license — individual licensees cannot practice independently without being associated with a licensed firm. This NC-specific requirement is frequently tested.
North Carolina Real Estate Commission's specific rules on advertising, supervision, trust accounts, and the Working with Real Estate Agents brochure requirement are tested on the state portion.
North Carolina requires licensees to provide the NCREC's 'Working with Real Estate Agents' brochure at first substantial contact with unrepresented buyers and sellers. The timing and content requirements are tested on the state exam.
North Carolina Real Estate Math
The North Carolina real estate exam includes math questions covering commission calculations, loan-to-value (LTV) ratios, property tax prorations, area and volume, and appreciation/depreciation. A common example: if a property sells for $350,000 and the total commission is 6%, split equally between listing and buyer's broker, each side earns $10,500. Proration questions — such as calculating how many days of property taxes a seller owes at closing — are also common. On the NC exam, you will not need a calculator for most math questions, but you do need to understand the formulas. Practice the "T-bar" method for commission splits and the 360-day banker's year for prorations.
🧮 See all exam math formulas →How To Get Your North Carolina Real Estate License
- 1Complete 75 hours of state-approved pre-license education covering topics required by the North Carolina Real Estate Commission (NCREC).
- 2Submit your application to the North Carolina Real Estate Commission (NCREC) and pay the required fees (exam fee: $60).
- 3Pass the North Carolina real estate salesperson exam (120 questions, 75% to pass).
- 4Complete a background check and fingerprinting as required by North Carolina law.
- 5Find a licensed sponsoring/employing broker to activate your license.
- 6Complete any required post-licensing education within the timeframe set by the North Carolina Real Estate Commission (NCREC).
Best Study Strategy For The North Carolina Exam
Start with North Carolina license law first. State-specific regulations administered by the North Carolina Real Estate Commission (NCREC) make up a significant portion of the NC exam and are not covered in most national study materials.
Master the math early. The North Carolina real estate exam includes questions on commission calculations, prorations, loan-to-value ratios, and area calculations. Set aside dedicated math practice sessions — don't leave it until the last week.
Take timed practice exams. The North Carolina exam has 120 questions within a 3.5 hours time limit. Simulate exam conditions to build stamina and identify weak topics before exam day.
Focus heavily on agency law. Agency relationships, disclosure requirements, and fiduciary duties are consistently among the most-tested topics on the NC exam. Understand the difference between seller's agent, buyer's agent, dual agent, and transaction broker in the context of North Carolina law.
Review Fair Housing thoroughly. Federal Fair Housing Act protections apply in all states, but North Carolina may have additional protected classes. Know both federal and North Carolina-specific protections cold — this topic appears on virtually every exam.
Use active recall, not passive reading. Instead of re-reading notes, quiz yourself. Use flashcards or practice questions to test retention. Research shows active recall improves long-term retention significantly compared to passive review.
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