SUPERIOR REAL ESTATE SCHOOL – EXAM 2026 –
COMPLETE 300 QUESTION SET WITH VERIFIED ANSWERS
AND RATIONALE ALREADY GRADED A+ NEW!!!!!!!!!!!!!!!!!!!
This 300-question practice exam is based on the Superior Real Estate School
curriculum for the 2026 licensing year, covering essential North Carolina real
estate principles. Topics include property ownership, land characteristics
(indestructibility, uniqueness, immobility), estates (fee simple, life estates,
joint tenancy), easements, deeds, contracts, agency relationships, fiduciary
duties, financing (mortgages, PMI, amortization), valuation (CMA, cap rates,
highest and best use), and regulatory requirements (NCREC rules, disclosure
laws, Fair Housing). Each question is presented in multiple-choice format
with detailed rationales to reinforce understanding. This comprehensive
review tests both fundamental concepts and practical applications, preparing
candidates to successfully pass the North Carolina real estate licensing
examination.
1. Which of the following is considered to have the greatest impact on the value of
a property?
A. Area Preference
B. Permanence of Investment
C. Scarcity
D. Uniqueness
Answer: A
Rationale: Location is the most significant factor in real estate value .
2. The concept by which land would increase automatically along a river or stream
is known as:
A. Accretion
B. Littoral Rights
C. Avulsion
D. Reliction
Answer: A
Rationale: Accretion is the gradual, natural increase of land by the deposit of soil
on a riverbank or shoreline .
,3. All of the following are physical characteristics of land except:
A. Indestructibility
B. Uniqueness
C. Immobility
D. Scarcity
Answer: D
Rationale: Scarcity is an economic characteristic of land, not a physical one. The
three classic physical characteristics are indestructibility, uniqueness, and
immobility .
4. Under the doctrine of specific performance, the party harmed by breach of a real
estate contract can ask a judge to force the breaching party to carry out the terms of
the contract rather than order monetary damages. Which physical characteristic of
land is the basis for the doctrine of specific performance?
A. Indestructibility
B. Uniqueness
C. Immobility
D. Permanence of Investment
Answer: B
Rationale: Because each parcel of land is unique, monetary damages are often
considered inadequate compensation for a breach of a real estate contract .
5. The owner of a house wants to fence the yard for a dog. When the fence is
erected, the fencing materials are converted to real estate by:
A. Severance
B. Annexation
C. Immobility
D. Indestructibility
Answer: B
Rationale: Annexation is the process of attaching personal property to land,
thereby converting it into real property .
6. A deed conveyed ownership to a grantee "so long as the existing building on the
property is not destroyed." Following the transfer, the original grantor has what
type of interest?
A. Life Estate
B. Ongoing ownership in the property that lasts as long as the condition
C. Fee Simple Estate
D. Reversionary Estate
,Answer: D
Rationale: When a condition creates a defeasible fee, the grantor retains a
reversionary interest if the condition is broken .
7. A woman conveys a life estate to her son-in-law and stipulates that upon his
death the estate will pass to her grandson. The grandson has an:
A. Estate in Reversion
B. Estate in Remainder
C. Estate Pur Autre Vie
D. Estate for the life of another
Answer: B
Rationale: A remainder interest is a future interest that passes to a third party upon
the termination of a life estate .
8. A person who acquired ownership that can be inherited, with the provision "that
the land must always be used for recreational purposes," has:
A. A fee simple absolute estate
B. A defeasible fee
C. A fee simple to a condition subsequent estate
D. An estate that cannot be sold
Answer: B
Rationale: A defeasible fee is an estate that may end upon the occurrence of a
specified condition .
9. A brother and sister bought a commercial building and took title as joint tenants
with right of survivorship. The brother died. The sister now owns the building:
A. As a joint tenant with right of survivorship with her brother's heirs
B. In severalty
C. As a tenant in common with her brother's heirs
D. As a life tenant with her brother's heirs having remainder interests
Answer: B
Rationale: When one joint tenant dies, the surviving joint tenant owns the property
in severalty (sole ownership) .
10. Co-owners of a fee simple interest in a small office building are neither related
to nor a creditor to each other. One owner dies intestate. The surviving owner
would become the sole owner of the property under which of the following rights?
A. Adverse possession
B. Reversionary interest
C. Survivorship
, D. Foreclosure
Answer: C
Rationale: Right of survivorship allows the surviving co-owner to automatically
inherit the deceased owner's share .
11. Three joint tenants with rights of survivorship own a parcel of land. One owner
sells his interest to a long-time friend. After the conveyance, the remaining original
owners:
A. Become tenants in common with each other
B. Become tenants in common with each other and the newest owner
C. Become joint tenants with the newest owner
D. Remain joint tenants with each other
Answer: D
Rationale: The unity of interest among the original joint tenants is severed for the
sold share, but the remaining original owners continue as joint tenants with each
other .
12. The owner of a condominium unit learns that a neighbor has failed to pay his
condominium association dues. If the neighbor does NOT pay the dues:
A. A lien can be filed against the condominium complex
B. A lien can be filed against the neighbor's unit
C. A lien can only be filed against the common areas of the condominium
D. The taxing authority can order the condominium be dissolved
Answer: B
Rationale: The condominium association can file a lien against the individual unit
for unpaid assessments .
13. The severalty owner of a parcel of land sells it. The buyer insists that the
owner's wife also sign the deed. The purpose of obtaining the wife's signature is to:
A. Terminate any rights the wife may have in the property
B. Defeat any curtesy rights
C. Provide evidence that the owner is married
D. Subordinate the wife's signature to the buyer
Answer: B
Rationale: A wife's signature is required to release her potential dower or curtesy
rights in the property .
14. Vonda Lee and William purchased a home together in 2003 with the deed
simply listing both of them as "grantees" without specifying how they were to hold
title. They married each other in early 2004. How do they now likely hold title to
COMPLETE 300 QUESTION SET WITH VERIFIED ANSWERS
AND RATIONALE ALREADY GRADED A+ NEW!!!!!!!!!!!!!!!!!!!
This 300-question practice exam is based on the Superior Real Estate School
curriculum for the 2026 licensing year, covering essential North Carolina real
estate principles. Topics include property ownership, land characteristics
(indestructibility, uniqueness, immobility), estates (fee simple, life estates,
joint tenancy), easements, deeds, contracts, agency relationships, fiduciary
duties, financing (mortgages, PMI, amortization), valuation (CMA, cap rates,
highest and best use), and regulatory requirements (NCREC rules, disclosure
laws, Fair Housing). Each question is presented in multiple-choice format
with detailed rationales to reinforce understanding. This comprehensive
review tests both fundamental concepts and practical applications, preparing
candidates to successfully pass the North Carolina real estate licensing
examination.
1. Which of the following is considered to have the greatest impact on the value of
a property?
A. Area Preference
B. Permanence of Investment
C. Scarcity
D. Uniqueness
Answer: A
Rationale: Location is the most significant factor in real estate value .
2. The concept by which land would increase automatically along a river or stream
is known as:
A. Accretion
B. Littoral Rights
C. Avulsion
D. Reliction
Answer: A
Rationale: Accretion is the gradual, natural increase of land by the deposit of soil
on a riverbank or shoreline .
,3. All of the following are physical characteristics of land except:
A. Indestructibility
B. Uniqueness
C. Immobility
D. Scarcity
Answer: D
Rationale: Scarcity is an economic characteristic of land, not a physical one. The
three classic physical characteristics are indestructibility, uniqueness, and
immobility .
4. Under the doctrine of specific performance, the party harmed by breach of a real
estate contract can ask a judge to force the breaching party to carry out the terms of
the contract rather than order monetary damages. Which physical characteristic of
land is the basis for the doctrine of specific performance?
A. Indestructibility
B. Uniqueness
C. Immobility
D. Permanence of Investment
Answer: B
Rationale: Because each parcel of land is unique, monetary damages are often
considered inadequate compensation for a breach of a real estate contract .
5. The owner of a house wants to fence the yard for a dog. When the fence is
erected, the fencing materials are converted to real estate by:
A. Severance
B. Annexation
C. Immobility
D. Indestructibility
Answer: B
Rationale: Annexation is the process of attaching personal property to land,
thereby converting it into real property .
6. A deed conveyed ownership to a grantee "so long as the existing building on the
property is not destroyed." Following the transfer, the original grantor has what
type of interest?
A. Life Estate
B. Ongoing ownership in the property that lasts as long as the condition
C. Fee Simple Estate
D. Reversionary Estate
,Answer: D
Rationale: When a condition creates a defeasible fee, the grantor retains a
reversionary interest if the condition is broken .
7. A woman conveys a life estate to her son-in-law and stipulates that upon his
death the estate will pass to her grandson. The grandson has an:
A. Estate in Reversion
B. Estate in Remainder
C. Estate Pur Autre Vie
D. Estate for the life of another
Answer: B
Rationale: A remainder interest is a future interest that passes to a third party upon
the termination of a life estate .
8. A person who acquired ownership that can be inherited, with the provision "that
the land must always be used for recreational purposes," has:
A. A fee simple absolute estate
B. A defeasible fee
C. A fee simple to a condition subsequent estate
D. An estate that cannot be sold
Answer: B
Rationale: A defeasible fee is an estate that may end upon the occurrence of a
specified condition .
9. A brother and sister bought a commercial building and took title as joint tenants
with right of survivorship. The brother died. The sister now owns the building:
A. As a joint tenant with right of survivorship with her brother's heirs
B. In severalty
C. As a tenant in common with her brother's heirs
D. As a life tenant with her brother's heirs having remainder interests
Answer: B
Rationale: When one joint tenant dies, the surviving joint tenant owns the property
in severalty (sole ownership) .
10. Co-owners of a fee simple interest in a small office building are neither related
to nor a creditor to each other. One owner dies intestate. The surviving owner
would become the sole owner of the property under which of the following rights?
A. Adverse possession
B. Reversionary interest
C. Survivorship
, D. Foreclosure
Answer: C
Rationale: Right of survivorship allows the surviving co-owner to automatically
inherit the deceased owner's share .
11. Three joint tenants with rights of survivorship own a parcel of land. One owner
sells his interest to a long-time friend. After the conveyance, the remaining original
owners:
A. Become tenants in common with each other
B. Become tenants in common with each other and the newest owner
C. Become joint tenants with the newest owner
D. Remain joint tenants with each other
Answer: D
Rationale: The unity of interest among the original joint tenants is severed for the
sold share, but the remaining original owners continue as joint tenants with each
other .
12. The owner of a condominium unit learns that a neighbor has failed to pay his
condominium association dues. If the neighbor does NOT pay the dues:
A. A lien can be filed against the condominium complex
B. A lien can be filed against the neighbor's unit
C. A lien can only be filed against the common areas of the condominium
D. The taxing authority can order the condominium be dissolved
Answer: B
Rationale: The condominium association can file a lien against the individual unit
for unpaid assessments .
13. The severalty owner of a parcel of land sells it. The buyer insists that the
owner's wife also sign the deed. The purpose of obtaining the wife's signature is to:
A. Terminate any rights the wife may have in the property
B. Defeat any curtesy rights
C. Provide evidence that the owner is married
D. Subordinate the wife's signature to the buyer
Answer: B
Rationale: A wife's signature is required to release her potential dower or curtesy
rights in the property .
14. Vonda Lee and William purchased a home together in 2003 with the deed
simply listing both of them as "grantees" without specifying how they were to hold
title. They married each other in early 2004. How do they now likely hold title to
