This free North Carolina real estate exam study guide covers both portions of the North Carolina broker licensing exam — the North Carolina state-specific law tested by the and the national/general principles tested across the country.[1]North Carolina’s state portion is distinctive — start with it.
The exam has two separately scored parts — an 80-question national portion and a 60-question North Carolina portion, each scored on its own.[4]It’s interactive, not a wall of text: every area has a built-in checkpoint quiz, hover-able glossary terms, worked math examples, and concept questions.
Read the guide area by area, test yourself at each checkpoint, then round out your free prep with our North Carolina practice questions and flashcards. Two areas reward the most study time on the state side: NCREC license law and North Carolina agency and disclosure.
North Carolina Real Estate Exam Snapshot
| Detail | North Carolina broker exam |
|---|---|
| Regulator | North Carolina Real Estate Commission (NCREC) |
| License ladder | Provisional Broker → Broker → Broker-in-Charge (no 'salesperson' license) |
| Scored questions | 140 total — 80 national + 60 North Carolina state |
| Passing standard | Each portion scored separately (our pool uses 75% on each) |
| Pre-license education | 75-hour Broker Prelicensing Course |
| Postlicensing | 90-hour program (three 30-hour courses) within 18 months for provisional brokers |
| License term & CE | Annual renewal (July 1–June 30); 8 hours of CE per year (4-hour Update + 4-hour elective) |
| Closing | Attorney-supervised closing; deed-of-trust, power-of-sale foreclosure state |
Confirm the current question counts, minimum scores, fees, and education rules with the NCREC before you test — North Carolina updates its outlines periodically.[1][4] The weighting below reflects the published North Carolina state-portion content; license law and the Commission rules dominate it:
North Carolina’s state outline is built around G.S. 93A and the Commission’s rules, so treat the percentages as a planning guide.[4] This guide teaches the North Carolina state law first, then all eight national content areas, each ending in a checkpoint quiz.
The portions are scored separately — you must pass both. Confirm the current counts and minimum scores with the NCREC before you test.
1 · NCREC, G.S. 93A & the License Ladder (North Carolina)
The heart of the North Carolina portion. Who regulates real estate in North Carolina, the unique provisional-broker license ladder, the trust-account rules a broker must follow, and the Recovery Fund that protects the public.[2]
North Carolina real estate law flows from the statute (G.S. 93A) to the rules (21 NCAC 58) to the agencythat enforces them. The exam’s biggest state section is built on this stack.
- G.S. Chapter 93ANorth Carolina's Real Estate License Law — the statute the General Assembly enacted to govern licensing and the conduct of brokers.
- 21 NCAC 58 (Commission Rules)The administrative rules (58A, 58B, 58C) the Commission adopts to implement the statute — agency disclosure, trust accounts, advertising, education, and conduct.
- North Carolina Real Estate Commission (NCREC)The state agency (ncrec.gov) that licenses and regulates real estate brokers and enforces both the statute and the rules.
- The Commission's disciplinary authorityAfter a hearing, the NCREC may reprimand, suspend, or revoke a license for violations such as misrepresentation, fraud, or commingling trust funds.
NC REALTORS® is a private trade association — not the regulator.
NCREC & G.S. Chapter 93A
The regulates brokers under , the Real Estate License Law, and adopts the administrative rules in . The Commission issues licenses, investigates complaints, and may reprimand, suspend, or revoke a license. Don’t confuse the NCREC with NC REALTORS®, a private trade association.
Provisional Broker → Broker → Broker-in-Charge
North Carolina has no “salesperson” license. The entry-level license is the , issued after the 75-hour and the licensing exam.
A provisional broker must be supervised by a and cannot work independently. Completing the 90-hour — three 30-hour courses within 18 months — removes the provisional status and makes the person a full .[1]
- 1 · 75-hour Broker Prelicensing CourseComplete the NCREC-approved 75-hour prelicensing course before applying for the license and taking the exam.
- 2 · Pass the licensing exam & applyPass both the national and North Carolina portions and submit the application (with a background check) to the Commission.
- 3 · Provisional BrokerThe entry-level license. NC has NO 'salesperson.' A provisional broker must be supervised by a broker-in-charge and cannot work independently.
- 4 · BrokerComplete the 90-hour postlicensing program — three 30-hour courses within 18 months — to remove the 'provisional' status and become a full broker.
- 5 · Broker-in-Charge (BIC)With ~2 years' experience and the BIC course, a broker may be designated broker-in-charge — supervising an office, its brokers, and its trust accounts.
North Carolina’s ladder is Provisional Broker → Broker → Broker-in-Charge— there is no “salesperson” license.
Trust Accounts & Commission Rules
Under Commission Rule 21 NCAC 58A .0116, a broker must deposit and other into a trust or escrow account no later than three banking days after receipt. The money belongs to the parties, not the broker; it with the broker’s own funds is a violation. If a dispute arises over an earnest money deposit, the broker may not decide who gets it — the broker holds the funds and may use , depositing them with the clerk of court.
The Recovery Fund, CE & Renewal
North Carolina does maintain a under G.S. 93A-16, which reimburses consumers for direct monetary loss from a broker’s wrongful acts — up to $50,000 per transaction and $75,000 in the aggregate per licensee.[3] Licenses are renewed annually (July 1–June 30); to stay active a broker completes 8 hours of by June 10 — a 4-hour plus a 4-hour elective.
Checkpoint · Area 1 · NCREC & NC License Law
Question 1 of 10
Which North Carolina statute is known as the Real Estate License Law and establishes the legal framework for licensing real estate brokers in the state?
2 · North Carolina Agency, the WWREA & Disclosure
The most distinctively North Carolina material. How agency and the WWREA disclosure work, the disclosure documents a seller delivers, fair housing, and the excise tax.[2]
NC Agency, the WWREA & Dual Agency
A broker must give the at ; it explains agency but does not create it. North Carolina uniquely permits (non-exclusive and unwritten) at first, but the buyer agency agreement must be in writing no later than when the broker presents an offer.
A listing (seller) agency must be written from the start. requires the express written consent of every client, and in the firm appoints one broker per client.
RPOADS & the Duty to Disclose
Most residential sellers must deliver the — the Residential Property and Owners’ Association Disclosure Statement — covering the property’s condition and HOA obligations. A seller may answer to most items, but that does not relieve liability for fraud or for willfully concealing a known . If the RPOADS is not delivered before the buyer’s offer, the buyer may cancel within three calendar days.
North Carolina requires several disclosures up front. Choosing “No Representation” on the RPOADS does not protect a seller who commits fraud or willfully conceals a known defect.
If the RPOADS is not delivered before the buyer’s offer, the buyer may cancel within three calendar days.
Mineral & Oil/Gas Rights Disclosure
Since January 1, 2015, most North Carolina residential sellers must also provide a separate stating whether those rights have been or will be severed.[2] Whether a prior owner severed the rights may be answered “No Representation,” but whether the sellerhas severed them or intends to must be answered “Yes” or “No.”
NC Fair Housing & Excise Tax
The (G.S. Chapter 41A) bans housing discrimination based on race, color, religion, sex, national origin, handicap, and familial status — mirroring the federal Act.[6] On a sale, North Carolina charges an of $1.00 per $500 of the price, paid by the seller to the register of deeds before recording.[5]
Checkpoint · Area 2 · NC Agency, WWREA & Disclosure
Question 1 of 10
When must a North Carolina broker first provide the 'Working With Real Estate Agents Disclosure' to a prospective buyer or seller in a sales transaction?
3 · Property, Legal Descriptions & Land Use
National content area.What real property is, the estates and rights an owner can hold, the government’s powers over land, and how land is legally described.
Estates & the Bundle of Rights
is land, everything permanently attached to it (including ), and the . The largest estate is — absolute and inheritable. Use the MARIA tests (Method of attachment, Adaptability, Relationship, Intention, Agreement) to tell a fixture from personal property.
Government Powers & Encumbrances
Even fee simple is limited by four government powers, remembered as PETE: (zoning, codes), (with just compensation), taxation, and . An — a lien, , or deed restriction — limits title.
Every owner’s rights are subject to four powers of government. Note the key contrast: only eminent domain requires the government to pay the owner.
Legal Descriptions
Three methods describe land precisely: (the most common in North Carolina), the rectangular (government) survey system (townships, ranges, and ), and lot-and-block. One is 640 acres and one is 43,560 square feet.
6 mi × 6 mi = 36 sections
1 sq mile = 640 acres
43,560 square feet
Memorize for the exam: 43,560 sq ft/acre and 5,280 ft/mile — these are not provided at the test center. (Most North Carolina land uses metes-and-bounds descriptions.)
Checkpoint · Area 3 · Property, Legal Descriptions & Land Use
Question 1 of 10
Under the rectangular survey system, a single township is divided into how many sections, and approximately how many acres does each full section contain?
4 · Ownership, Title Transfer & Recording
National content area, with key North Carolina differences. How people co-own property in North Carolina, how a deed transfers title, and how recording protects ownership.
Forms of Ownership in North Carolina
The key difference is the right of survivorship. has it and needs the four unities; does not, so each share passes by will. North Carolina is not a community-property state — married couples typically hold title as , which carries survivorship and shields the property from one spouse’s individual creditors.
| Form | Survivorship? | Who can hold it |
|---|---|---|
| Severalty | N/A — sole owner | One person or entity |
| Tenancy in common | No — passes by will | Any number of co-owners |
| Joint tenancy | Yes — to survivors | Co-owners with the four unities |
| Tenancy by the entirety | Yes — to surviving spouse | A married couple in North Carolina |
Deeds, Recording & Title
A deed conveys title from grantor to grantee. The gives the most protection; a gives none.
Title passes on delivery and acceptance, not on recording — but recording at the county register of deeds gives constructive notice and sets priority. protects against prior defects, and an is paid before the deed is recorded.
Checkpoint · Area 4 · Ownership, Title Transfer & Recording
Question 1 of 10
A claimant occupies a neighbor's unused back lot openly and continuously, but for the first several years she does so under a recorded but defective deed she honestly believed gave her ownership, and in some states she also pays the property taxes. Compared with a trespasser who has no document at all, what advantage does occupying under such a written instrument and paying taxes typically provide in an adverse possession claim?
5 · Property Value & Appraisal
National content area.What creates value, the three approaches an appraiser uses, and how a broker’s CMA differs from a formal appraisal.
Value Principles
is the most probable price under fair conditions — an opinion, distinct from the actual market price. The basis of value is : the legal, possible, feasible, and most profitable use of a site. A helps price a listing; a formal is an impartial USPAP-compliant opinion by a licensed appraiser.
The Three Approaches to Value
An appraiser estimates value three ways, then reconciles them — weighing the indications, not averaging — into one final opinion.
The appraiser then reconciles the three indications into one final opinion of value — weighing them, not averaging.
Checkpoint · Area 5 · Property Value & Appraisal
Question 1 of 10
When an appraiser uses the sales comparison approach and a comparable property is inferior to the subject in a particular feature, what adjustment is made?
6 · Contracts & Agency (National)
The single largest national area. What makes a contract valid, the kinds of listing agreements, and the fiduciary duties at the heart of agency.
Contract Law & Listings
A valid needs mutual agreement, consideration, legal purpose, and competent parties — and, for real estate, writing under the . A missing essential element makes it void; a defect like a minor’s signature makes it voidable. North Carolina’s standard Offer to Purchase and Contract uses a separate and a .
| Listing type | Who earns the commission |
|---|---|
| Exclusive right-to-sell | The listing broker — no matter who finds the buyer |
| Exclusive agency | The broker, unless the owner sells it themselves |
| Open listing | Only the broker who actually finds the buyer |
| Net listing | Broker keeps the amount above the seller's set price — a conflict of interest |
Agency & Fiduciary Duties
Agency is a fiduciary relationship between agent and principal. The are OLD CAR: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care. Confidentiality survives the end of the relationship; in North Carolina, honesty and the duty to disclose material facts are owed to all parties, not just the client.
Checkpoint · Area 6 · Contracts & Agency (National)
Question 1 of 10
Specific performance is an equitable remedy especially associated with real estate contracts. Why is this remedy considered particularly appropriate for real estate disputes?
7 · Real Estate Practice & Fair Housing
National content area. Fair housing, handling client money, and the leasing work a broker does day to day.[7]
Fair Housing
The (1968) bans discrimination based on race, color, religion, national origin, sex, familial status, and disability — seven federal protected classes.[7] North Carolina’s own mirrors these classes and is enforced through the North Carolina Human Relations Commission. The classic violations are , blockbusting, and redlining.
| Practice | What it is |
|---|---|
| Steering | Guiding buyers toward or away from areas by protected class |
| Blockbusting | Inducing panic selling by claiming a protected class is moving in |
| Redlining | A lender refusing to lend or insure in an area by its makeup |
Trust Funds, Leases & Conduct
A broker must keep client funds — like — in a separate trust (escrow) account; is a violation. Commission rates are always negotiable, and fixing them with competitors is an antitrust violation. North Carolina’s Tenant Security Deposit Act limits residential security deposits and requires they be held in a trust account or bonded.
Checkpoint · Area 7 · Real Estate Practice & Fair Housing
Question 1 of 10
Which of the following advertising phrases would most likely be found to violate the Fair Housing Act?
8 · Disclosures & Environmental Issues
National content area. What a seller and broker must reveal, and the environmental hazards the exam expects you to recognize.[9]
Material Facts & Property Disclosure
A — anything that would affect a buyer’s decision or price — must be disclosed, including known . In North Carolina the seller uses the , and a broker’s duty to disclose known material facts is owed to all parties. The old rule of caveat emptor is now limited by disclosure law.
Environmental Hazards
The most heavily tested federal rule is the : for housing built before 1978, the seller must disclose known lead paint, give the EPA pamphlet, and (for sales) allow a 10-day inspection window.[9]
| Hazard | What to know |
|---|---|
| Lead-based paint | Pre-1978 housing; federal disclosure + EPA pamphlet + 10-day test window |
| Radon | Odorless radioactive gas from soil; can accumulate indoors |
| Asbestos | Old insulation/flooring; remove or encapsulate to control fibers |
| Mold | Grows in damp areas; may require disclosure and remediation |
| Underground storage tank | Can leak and contaminate soil and groundwater |
Checkpoint · Area 8 · Disclosures & Environmental Issues
Question 1 of 10
A seller signs a federal lead-based paint disclosure stating there is no knowledge of lead-based paint, but the seller actually knows the garage was coated with leaded paint in 1970 and deliberately leaves it off the form. What is the most accurate characterization of the seller's conduct?
9 · Financing & Settlement
National content area, with key North Carolina differences. The instruments that secure a loan, how North Carolina forecloses and closes, the main loan types, and what happens at settlement.[8]
Deeds of Trust, Notes & Foreclosure
North Carolina is a state: title is conveyed to a neutral trustee until the loan is repaid, so most foreclosures are a — the trustee sells the property after a hearing before the clerk of court. The promissory note is the borrower’s promise to repay; the deed of trust is the security.
- 1 · Offer to Purchase and ContractBuyer and seller sign the standard NC contract; the buyer typically pays a due diligence fee to the seller and a separate earnest money deposit into trust.
- 2 · Due diligence periodThe buyer inspects, appraises, and arranges financing and may terminate for any reason before the due diligence deadline (5:00 p.m. on the agreed date).
- 3 · Attorney title work & deed of trustA licensed NC attorney handles title search and closing (closing is the practice of law in NC). The lender's security is a deed of trust held by a trustee.
- 4 · Settlement, excise tax & recordingThe attorney settles and records the deed with the register of deeds; the seller pays the excise tax ($1.00 per $500) before recording.
North Carolina is a deed-of-trust, attorney-closing state that uses power-of-sale foreclosure through the clerk of court — heavily tested state differences.
Loan Types, Lending Laws & Closing
Three loan types anchor the exam — conventional, FHA, and VA — and the measures lender risk. Two federal laws govern disclosure: requires settlement-cost disclosures and bans kickbacks, and requires disclosing the cost of credit, including the APR.[8] In North Carolina, a licensed handles the closing and title work, because closing is the practice of law.
Checkpoint · Area 9 · Financing & Settlement
Question 1 of 10
A radio advertisement for a mortgage states a specific interest rate and the phrase "low monthly payments" but omits other required credit terms. Federal advertising rules that require additional disclosures once certain triggering terms appear in a consumer-credit ad come from which law?
10 · Real Estate Math
Tested on both portions. A handful of formulas cover almost every calculation: area, commission, seller net, loan-to-value, taxes, the North Carolina excise tax, and proration.[4]
Area, Commission & Net
Area of a rectangle is length × width; convert square feet to acres by dividing by 43,560. Commission = sale price × rate. To find the price for a target seller net, divide the net by (1 − rate).
| To find | Formula |
|---|---|
| Commission | Sale price × commission rate |
| Price for a target net | Net ÷ (1 − commission rate) |
| Loan-to-value (LTV) | Loan amount ÷ value (or price) |
| Value (income approach) | Net operating income ÷ capitalization rate |
| NC excise tax | (Price ÷ 500, rounded up) × $1.00 |
LTV, Taxes, Excise & Proration
is loan ÷ value. The North Carolina is \$1.00 per \$500 of the price (a \$200,000 sale = \$400). splits taxes, rent, and interest by the days each party owns the property — the seller is usually charged through the closing date.
Checkpoint · Area 10 · Real Estate Math
Question 1 of 10
A seller wants to net $300,000 after paying a 6% commission, with no other costs. At what price must the property sell for the seller to net that amount?
How to Use This Study Guide
A study guide is a map, not the whole territory — pair it with our free North Carolina practice questions and flashcards. Because North Carolina’s state portion is distinctive, lead with license law and North Carolina agency and disclosure, then layer in the national content areas and lock in the math.
- 1
Read a content area here
Work through one area at a time, North Carolina law first, then the national portions.
- 2
Take the checkpoint
The quick check at the end of each area exposes what didn't stick.
- 3
Drill the gaps
Send your weak area straight into the free North Carolina practice questions and flashcards.
- 4
Take full, timed practice
Sit a full-length practice test to build stamina, then review every miss.
North Carolina Real Estate Concept Questions
Common North Carolina and national real estate principles the broker exam actually tests — covering NCREC license law, the provisional broker ladder, the WWREA disclosure and NC agency, the RPOADS and Mineral & Oil/Gas disclosures, the Recovery Fund, excise tax, and the national content areas. Tap any card for a short, exam-ready answer backed by an official source (NCREC, the NC General Statutes, HUD, CFPB, EPA, or IRS), then test yourself on them as flashcards.
North Carolina Real Estate Glossary
Quick definitions for the terms you’ll see most across the North Carolina real estate exam:
- 21 NCAC 58
- Title 21, Chapter 58 of the North Carolina Administrative Code — the Commission's administrative rules (58A, 58B, 58C) implementing G.S. Chapter 93A.
- Acre
- A unit of land area equal to 43,560 square feet.
- Appraisal
- An impartial, supported opinion of value prepared by a licensed appraiser as of a specific date, following USPAP.
- Attorney-supervised closing
- North Carolina requires a licensed attorney to handle the real estate closing and title work, because closing is the practice of law in the state.
- Broker
- A North Carolina licensee who has removed the provisional status by completing the 90-hour postlicensing program and may operate without broker-in-charge supervision.
- Broker Prelicensing Course
- The 75-hour NCREC-approved course an applicant must complete before applying for a broker license and sitting for the licensing exam.
- Broker-in-charge (BIC)
- The broker designated as responsible for supervising a real estate office — affiliated and provisional brokers, trust accounts, and advertising. Every NC office must have one.
- Bundle of rights
- The rights that come with ownership: possession, use (enjoyment), exclusion, disposition (transfer), and control.
- Capitalization rate
- The rate of return on an income property: net operating income ÷ value. A higher cap rate implies more risk and lower value.
- Commingling
- Improperly mixing a client's trust funds with the broker's own or business funds — a North Carolina License Law violation.
- Commission Update course
- The mandatory 4-hour CE course: the General Update for brokers, or the BICUP (Broker-in-Charge Update) for brokers-in-charge.
- Comparative market analysis (CMA)
- A broker's estimate of value from recent comparable sales, used to help price a listing — not a formal appraisal.
- Contingency
- A condition that must be met for a contract to proceed, such as financing, inspection, or appraisal contingencies.
- Continuing education (CE)
- The 8 hours North Carolina brokers must complete each license period to stay active — a 4-hour Commission Update course plus a 4-hour elective, due by June 10.
- Contract
- A legally enforceable agreement between competent parties to do or refrain from doing a lawful act.
- Deed of trust
- North Carolina's standard security instrument: title is conveyed to a neutral trustee until the loan is repaid, enabling a power-of-sale foreclosure.
- Designated dual agency
- A North Carolina firm appoints one broker to represent the buyer and another to represent the seller, each acting only for their own client; the firm itself is the dual agent.
- Dual agency
- A North Carolina firm representing both buyer and seller in one transaction — permitted only with the express written authorization of every client.
- Due diligence fee
- A negotiated, non-refundable fee a buyer pays directly to the seller under the standard North Carolina contract for the right to investigate the property.
- Due diligence period
- The negotiated time in the North Carolina contract during which a buyer may inspect, appraise, and finance, and may terminate for any reason.
- Earnest money
- A buyer's good-faith deposit showing serious intent; held in trust and usually applied to the price at closing.
- Easement
- A nonpossessory right to use another's land for a specific purpose, such as a driveway or utility line.
- Eminent domain
- Government's power to take private property for public use through condemnation, paying the owner just compensation.
- Encumbrance
- Any claim, lien, charge, or right that limits an owner's title — liens, easements, encroachments, and deed restrictions.
- Escheat
- The reversion of property to the state when an owner dies with no will and no legal heirs.
- Excise (transfer) tax
- North Carolina's tax on conveyances under G.S. 105-228.30 — 500 of the price, paid by the seller to the register of deeds before recording.
- Fair Housing Act
- The 1968 federal law prohibiting housing discrimination based on race, color, religion, national origin, sex, familial status, and disability.
- Fee simple
- The most complete form of ownership — absolute, of unlimited duration, and freely transferable by deed or will. Also called fee simple absolute.
- Fiduciary duties
- The duties an agent owes the principal — Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care (OLD CAR).
- First substantial contact
- The point at which a North Carolina broker must provide the WWREA disclosure — when the consumer begins to share confidential information or the broker seeks it.
- Fixture
- An item of personal property attached to real property so as to become part of it and transfer with the land.
- G.S. Chapter 93A
- North Carolina's Real Estate License Law — the statute that creates the NC Real Estate Commission and governs the licensing and conduct of brokers.
- General warranty deed
- The deed giving the most protection; the grantor warrants clear title against all defects, even those arising before the grantor's ownership.
- Highest and best use
- The legally permissible, physically possible, financially feasible, and most profitable use of a site — the basis of value.
- Inactive status
- A current North Carolina license on which the broker may not perform brokerage activity; reactivated by completing CE (or postlicensing) and applying to the Commission.
- Interpleader
- A North Carolina broker's remedy for a disputed earnest money deposit — depositing the funds with the clerk of court so a judge decides who is entitled to them.
- Joint tenancy
- Co-ownership with the right of survivorship; requires the four unities of time, title, interest, and possession.
- Latent defect
- A hidden physical defect not discoverable by ordinary inspection; a known latent defect must be disclosed.
- Lead-based paint disclosure
- The federal requirement that sellers and landlords of pre-1978 housing disclose known lead paint and give a 10-day inspection window for sales.
- Listing agreement
- A contract employing a broker to find a buyer for the owner's property in exchange for compensation; in NC it must be in writing.
- Loan-to-value ratio (LTV)
- The loan amount divided by the property's value or price; a higher LTV means a smaller down payment and more lender risk.
- Market value
- The most probable price a property should bring in a competitive, open market under fair-sale conditions; an opinion of value.
- Material fact
- A fact that would affect a reasonable buyer's decision or price; in North Carolina it must be disclosed even if the buyer does not ask.
- Metes and bounds
- A legal description using distances (metes) and compass directions (bounds) traced back to a point of beginning — common in North Carolina.
- Mineral and Oil and Gas Rights Disclosure
- A separate North Carolina disclosure mandatory for most residential sellers since January 1, 2015, stating whether mineral, oil, or gas rights have been or will be severed.
- NC State Fair Housing Act
- G.S. Chapter 41A — prohibits housing discrimination based on race, color, religion, sex, national origin, handicap, and familial status; enforced by the NC Human Relations Commission.
- Net operating income (NOI)
- Effective gross income minus operating expenses, before any mortgage payment; the income figure used in the income approach.
- No Representation
- An answer a North Carolina seller may select for most RPOADS items, declining to disclose; it does not relieve liability for fraud or willful concealment of a known defect.
- North Carolina Real Estate Commission (NCREC)
- The state agency (ncrec.gov) that licenses and regulates real estate brokers under G.S. Chapter 93A and adopts the rules in 21 NCAC 58. It may reprimand, suspend, or revoke licenses.
- Oral buyer agency
- North Carolina uniquely permits buyer agency to begin orally if non-exclusive and unrestricted, but it must be put in writing no later than when an offer is presented.
- Police power
- Government's authority to regulate land for public health, safety, and welfare — the basis for zoning and building codes, with no payment to the owner.
- Postlicensing program
- The 90-hour program — three 30-hour courses — a North Carolina provisional broker must complete within 18 months of licensure to become a full broker.
- Power-of-sale foreclosure
- North Carolina's common foreclosure: the trustee sells the property after a hearing before the clerk of court — faster than a full judicial foreclosure.
- Proration
- Dividing prepaid or accrued expenses such as taxes, rent, and interest fairly between buyer and seller as of the closing date.
- Provisional broker
- North Carolina's entry-level license, issued after passing the exam. NC has no 'salesperson.' A provisional broker must be supervised by a broker-in-charge and cannot work independently.
- Quitclaim deed
- A deed conveying only whatever interest the grantor has, with no warranties; often used to clear a cloud on title.
- Real Estate Education and Recovery Fund
- The North Carolina fund (G.S. 93A-16) that reimburses consumers for direct monetary loss from a broker's wrongful acts — up to 75,000 per licensee.
- Real property
- Land plus everything permanently attached to it (improvements and fixtures) and the bundle of legal rights of ownership.
- RESPA
- The Real Estate Settlement Procedures Act — a federal law requiring loan-cost disclosures and prohibiting kickbacks at closing.
- RPOADS
- North Carolina's Residential Property and Owners' Association Disclosure Statement — most residential sellers must deliver it, covering property condition and HOA obligations.
- Section (survey)
- One square mile of land — 640 acres — and one thirty-sixth of a 6-mile-square township in the rectangular survey system.
- Statute of frauds
- The law requiring contracts for the sale of real estate (and most leases over a year) to be in writing to be enforceable.
- Steering
- Illegally guiding buyers toward or away from neighborhoods based on a protected class — a fair-housing violation.
- Tenancy by the entirety
- North Carolina's form of co-ownership for married couples — with the right of survivorship; neither spouse can convey alone, protecting against one spouse's creditors.
- Tenancy in common
- Co-ownership in which each owner holds an undivided, willable share; there is no right of survivorship.
- TILA
- The Truth in Lending Act — a federal law requiring lenders to disclose the cost of credit, including the annual percentage rate (APR).
- Title insurance
- A policy protecting the insured against loss from title defects that existed before the policy date, such as liens or recording errors.
- Trust (escrow) account
- A separate bank account where a North Carolina broker holds clients' money (earnest money, rents). Trust money must be deposited within three banking days of receipt.
- Working With Real Estate Agents Disclosure (WWREA)
- The North Carolina disclosure, given at first substantial contact, that explains the types of agency relationships available. It does not itself create an agency relationship.
Free North Carolina Real Estate Exam Study Materials & Resources
Everything you need to prepare for the North Carolina real estate exam is free here — no paywall, no sign-up. This guide is the foundation; pair it with the rest of our free North Carolina study materials for active recall, timed practice, and last-minute review:
- North Carolina Real Estate Practice Test — exam-style questions across the North Carolina and national content areas, with explanations.
- North Carolina Real Estate Flashcards — active-recall decks for NCREC law, the provisional broker ladder, the WWREA and NC disclosure forms, fiduciary duties, and math formulas.
North Carolina Real Estate Exam Study Guide FAQ
The North Carolina broker exam has two scored portions: a national/general portion of 80 questions and a North Carolina state-specific portion of 60 questions, for 140 scored items. Each portion is scored separately, and a small number of unscored pretest questions may be added.
You must pass each portion separately to pass the exam. Our practice pool uses 75% on each section as the passing standard; the national and state portions are graded independently, so you must meet the minimum on both. Always confirm the current passing scores with the NCREC before you test.
No. North Carolina does not issue a salesperson license. The entry-level license is the provisional broker, which is issued after you pass the exam. A provisional broker must work under a broker-in-charge and complete postlicensing education to become a full broker. The ladder is Provisional Broker → Broker → Broker-in-Charge (BIC).
The 'Working With Real Estate Agents' (WWREA) Disclosure is a North Carolina informational disclosure a broker must provide at first substantial contact. It explains the types of agency relationships available but does not itself create an agency relationship — that takes a separate agreement under Rule 21 NCAC 58A .0104.
North Carolina requires the 75-hour Broker Prelicensing Course before you apply and sit for the exam. After licensure, a provisional broker must complete a 90-hour postlicensing program — three 30-hour courses — within 18 months to remove the provisional status. Confirm current requirements with the NCREC.
Most residential sellers must deliver the Residential Property and Owners' Association Disclosure Statement (RPOADS) and, since January 1, 2015, a separate Mineral and Oil and Gas Rights Mandatory Disclosure Statement. For pre-1978 homes, the federal lead-based paint disclosure also applies. A seller may answer 'No Representation' to most RPOADS items but cannot conceal fraud.
North Carolina is a deed-of-trust state, so the common foreclosure is a power-of-sale foreclosure conducted by a trustee after a hearing before the clerk of court. North Carolina also requires a licensed attorney to handle the closing and title work, because closing is the practice of law in the state.
North Carolina licenses are renewed annually; the license year runs July 1 through June 30. To renew on active status you must complete 8 hours of continuing education each year — a 4-hour Commission Update course (or the BICUP for brokers-in-charge) plus a 4-hour elective — by June 10.
Yes — the full guide, the checkpoints, the glossary, the practice questions, and the flashcards are 100% free, with no account required.
References
- 1.North Carolina Real Estate Commission. “How to Become a Broker.” NCREC (ncrec.gov). ↑
- 2.North Carolina General Assembly. “G.S. Chapter 93A — Real Estate License Law.” ncleg.gov. ↑
- 3.North Carolina General Assembly. “G.S. 93A-16 — Real Estate Recovery Fund.” ncleg.gov. ↑
- 4.North Carolina Real Estate Commission. “License Examination (PSI Content Outline).” NCREC (ncrec.gov). ↑
- 5.North Carolina General Assembly. “G.S. 105-228.30 — Excise Tax on Conveyances.” ncleg.gov. ↑
- 6.North Carolina General Assembly. “G.S. Chapter 41A — State Fair Housing Act.” ncleg.gov. ↑
- 7.U.S. Department of Housing and Urban Development. “Fair Housing Act Overview.” HUD. ↑
- 8.Consumer Financial Protection Bureau. “Real Estate Settlement Procedures Act (Regulation X).” CFPB. ↑
- 9.U.S. Environmental Protection Agency. “Real Estate Disclosure (Lead-Based Paint).” EPA. ↑
Sources for the concept answers
Every answer in the North Carolina real estate concept questions above is drawn from an authoritative primary source:
- North Carolina Real Estate Commission. “North Carolina Real Estate Commission.” NCREC (ncrec.gov).
- Internal Revenue Service. “Sales and Other Dispositions of Assets (Publication 544).” IRS.
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