North Carolina 75-Hour Broker Pre-licensing
Final Exam (Set A to I)(2025) comprehensive
questions and verified detailed solutions (
MULTIPLE CHOICES) |100% CORRECT!!
1. A broker lists a property for $300,000. The seller tells the broker they will accept $280,0
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
00 but wants to start high. A buyer's agent asks the broker if the seller is flexible on price.
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx c
What is the listing broker required to do?
x cx cx cx cx cx cx cx
A) Tell the buyer's agent the seller will accept $280,000.
cx cx cx cx cx cx cx cx cx
B) Tell the buyer's agent the seller is not flexible on price.
cx cx cx cx cx cx cx cx cx cx cx
C) Tell the buyer's agent that the seller has given no specific instructions regarding price flexibilit
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
y.
D) Disclose the listing price only and state that all offers will be presented.
cx cx cx cx cx cx cx cx cx cx cx cx cx
2. The North Carolina Real Estate Commission (NCREC) is primarily funded by:
cx cx cx cx cx cx cx cx cx cx cx
A) State general tax funds.
cx cx cx cx
B) Federal grants for housing.
cx cx cx cx
C) License fees and renewal fees paid by licensees.
cx cx cx cx cx cx cx cx
D) Fines collected from disciplinary actions only.
cx cx cx cx cx cx
3. Which of the following is legally required for a valid contract for the sale of real estate i
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
n North Carolina?
cx cx
A) A lawyer’s seal.
cx cx cx
B) A witness signature.
cx cx cx
C) A notary acknowledgment.
cx cx cx
D) A description of the property sufficient to identify it.
cx cx cx cx cx cx cx cx cx
4. A buyer signs an Offer to Purchase and includes a loan condition. The seller accepts the
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
offer. However, the lender does not appraise the property for the purchase price and the
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
buyer does not have funds to cover the difference. The buyer can:
cx cx cx cx cx cx cx cx cx cx cx
A) Be sued for specific performance by the seller.
cx cx cx cx cx cx cx cx
B) Terminate the contract and receive their earnest money back, provided they acted in good fait
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
h.
,C) Terminate the contract but lose their earnest money as liquidated damages.
cx cx cx cx cx cx cx cx cx cx cx
D) Force the seller to reduce the price to the appraised value.
cx cx cx cx cx cx cx cx cx cx cx
5. To be a "single-
cx cx cx cx
family residence" under the North Carolina Residential Property Disclosure Act, a propert
cx cx cx cx cx cx cx cx cx cx cx
y must be:
cx cx
A) Owned by the original builder.
cx cx cx cx cx
B) Occupied or intended to be occupied by one family.
cx cx cx cx cx cx cx cx cx
C) More than 5 acres in size.
cx cx cx cx cx cx
D) A new construction with a builder's warranty.
cx cx cx cx cx cx cx
6. A broker is acting as a seller’s agent. The broker’s cousin is very interested in the proper
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
ty and asks the broker about the seller’s motivation. The broker tells the cousin that the s
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
eller is desperate and will take 15% less than the list price. Which fiduciary duty has the br
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
oker most likely breached?
cx cx cx
A) Duty of Loyalty
cx cx cx
B) Duty of Confidentiality
cx cx cx
C) Duty of Disclosure
cx cx cx
D) Duty of Reasonable Care
cx cx cx cx
7. The “North Carolina Law of Agency” stipulates that a broker must provide a Working w
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
ith Real Estate Agents brochure to a potential buyer:
cx cx cx cx cx cx cx cx
A) Before the buyer signs a contract to purchase.
cx cx cx cx cx cx cx cx
B) At the first meeting to discuss a specific property.
cx cx cx cx cx cx cx cx cx
C) At the time an offer is submitted.
cx cx cx cx cx cx cx
D) Only when the buyer is ready to make a written offer.
cx cx cx cx cx cx cx cx cx cx cx
8. A buyer gives a broker a $5,000 earnest money check. Under Commission rules, the bro
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
ker must deposit the check into a trust account:
cx cx cx cx cx cx cx cx
A) Within 3 banking days of the offer's acceptance.
cx cx cx cx cx cx cx cx
B) Immediately upon receipt.
cx cx cx
C) Within 5 banking days after the contract is signed by both parties.
cx cx cx cx cx cx cx cx cx cx cx cx
D) Only after the loan commitment is received.
cx cx cx cx cx cx cx
9. A buyer obtains a loan for 90% of the purchase price. This is an example of a:
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
A) Conventional loan with Private Mortgage Insurance (PMI).
cx cx cx cx cx cx cx
,B) VA loan.
cx cx
C) FHA loan.
cx cx
D) Seller-financed loan.
cx cx
10. Which of the following requires a real estate license in North Carolina?
cx cx cx cx cx cx cx cx cx cx cx cx
A) An attorney selling a property as part of a court-ordered sale.
cx cx cx cx cx cx cx cx cx cx cx
B) A property owner selling their own single-family home.
cx cx cx cx cx cx cx cx
C) An employee of a builder who only shows model homes and collects contact information.
cx cx cx cx cx cx cx cx cx cx cx cx cx cx
D) A person who, for compensation, lists and sells manufactured homes that are permanently affi
cx cx cx cx cx cx cx cx cx cx cx cx cx cx
xed to a foundation.
cx cx cx
11. In a North Carolina closing, the buyer is responsible for:
cx cx cx cx cx cx cx cx cx cx
A) The deed preparation and recording fee.
cx cx cx cx cx cx
B) The deed of trust preparation and recording fee.
cx cx cx cx cx cx cx cx
C) The broker’s commission.
cx cx cx
D) Both A and B.
cx cx cx cx
12. Which of the following is an acceptable form of co-
cx cx cx cx cx cx cx cx cx cx
ownership in North Carolina that features the right of survivorship?
cx cx cx cx cx cx cx cx cx
A) Tenancy in Common
cx cx cx
B) Tenancy by the Entirety
cx cx cx cx
C) Joint Tenancy with Right of Survivorship
cx cx cx cx cx cx
D) All of the above.
cx cx cx cx
13. A broker receives an offer on a property. The seller counters the offer. The buyer does
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
not accept the counter-offer. The original offer is:
cx cx cx cx cx cx cx
A) Still valid until the expiration date.
cx cx cx cx cx cx
B) Void, as the counter-offer terminated it.
cx cx cx cx cx cx
C) Valid only if the seller decides to accept it later.
cx cx cx cx cx cx cx cx cx cx
D) Considered voidable.
cx cx
14. What is the minimum number of hours of continuing education (CE) a North Carolina
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
broker must complete each year?
cx cx cx cx
A) 4 hours of General CE.
cx cx cx cx cx
B) 8 hours of General CE.
cx cx cx cx cx
, C) 6 hours of General CE and 4 hours of Elective CE.
cx cx cx cx cx cx cx cx cx cx cx
D) 4 hours of General CE and 4 hours of Elective CE.
cx cx cx cx cx cx cx cx cx cx cx
15. A broker represents a buyer in a transaction. The broker finds out that the home has a
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
major foundation issue that the seller is unaware of. The buyer asks the broker not to tell
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
the seller. The broker should:
cx cx cx cx
A) Follow the buyer's instructions and keep the information confidential.
cx cx cx cx cx cx cx cx cx
B) Disclose the defect to the seller because all material facts must be disclosed to all parties.
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
C) Advise the buyer to disclose it, but if they refuse, terminate the agency relationship.
cx cx cx cx cx cx cx cx cx cx cx cx cx cx
D) Tell the buyer to walk away from the deal.
cx cx cx cx cx cx cx cx cx
16. Which agency relationship can be created without a written agreement in North Caroli
cx cx cx cx cx cx cx cx cx cx cx cx cx
na?
A) Single Agency
cx cx
B) Dual Agency
cx cx
C) Designated Agency
cx cx
D) Subagency
cx
17. The “radon” disclosure is required by North Carolina law for:
cx cx cx cx cx cx cx cx cx cx
A) All commercial transactions.
cx cx cx
B) All residential transactions.
cx cx cx
C) All transactions involving homes built before 1978.
cx cx cx cx cx cx cx
D) All transactions involving homes located in a designated radon zone.
cx cx cx cx cx cx cx cx cx cx
18. The seller of a property is required to provide a Residential Property Disclosure State
cx cx cx cx cx cx cx cx cx cx cx cx cx cx
ment to the buyer. If the seller fails to provide it, the buyer:
cx cx cx cx cx cx cx cx cx cx cx cx
A) Cannot back out of the contract.
cx cx cx cx cx cx
B) Can rescind the contract.
cx cx cx cx
C) Must go to closing but can sue for damages afterward.
cx cx cx cx cx cx cx cx cx cx
D) Can reduce the purchase price by the cost of a home inspection.
cx cx cx cx cx cx cx cx cx cx cx cx
19. What is the primary purpose of the Real Estate Settlement Procedures Act (RESPA)?
cx cx cx cx cx cx cx cx cx cx cx cx cx
A) To regulate loan interest rates.
cx cx cx cx cx
B) To prohibit kickbacks and require good faith estimates of closing costs.
cx cx cx cx cx cx cx cx cx cx cx
C) To require lenders to use standard appraisal forms.
cx cx cx cx cx cx cx cx
D) To allow lenders to escrow for taxes and insurance.
cx cx cx cx cx cx cx cx cx
Final Exam (Set A to I)(2025) comprehensive
questions and verified detailed solutions (
MULTIPLE CHOICES) |100% CORRECT!!
1. A broker lists a property for $300,000. The seller tells the broker they will accept $280,0
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
00 but wants to start high. A buyer's agent asks the broker if the seller is flexible on price.
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx c
What is the listing broker required to do?
x cx cx cx cx cx cx cx
A) Tell the buyer's agent the seller will accept $280,000.
cx cx cx cx cx cx cx cx cx
B) Tell the buyer's agent the seller is not flexible on price.
cx cx cx cx cx cx cx cx cx cx cx
C) Tell the buyer's agent that the seller has given no specific instructions regarding price flexibilit
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
y.
D) Disclose the listing price only and state that all offers will be presented.
cx cx cx cx cx cx cx cx cx cx cx cx cx
2. The North Carolina Real Estate Commission (NCREC) is primarily funded by:
cx cx cx cx cx cx cx cx cx cx cx
A) State general tax funds.
cx cx cx cx
B) Federal grants for housing.
cx cx cx cx
C) License fees and renewal fees paid by licensees.
cx cx cx cx cx cx cx cx
D) Fines collected from disciplinary actions only.
cx cx cx cx cx cx
3. Which of the following is legally required for a valid contract for the sale of real estate i
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
n North Carolina?
cx cx
A) A lawyer’s seal.
cx cx cx
B) A witness signature.
cx cx cx
C) A notary acknowledgment.
cx cx cx
D) A description of the property sufficient to identify it.
cx cx cx cx cx cx cx cx cx
4. A buyer signs an Offer to Purchase and includes a loan condition. The seller accepts the
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
offer. However, the lender does not appraise the property for the purchase price and the
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
buyer does not have funds to cover the difference. The buyer can:
cx cx cx cx cx cx cx cx cx cx cx
A) Be sued for specific performance by the seller.
cx cx cx cx cx cx cx cx
B) Terminate the contract and receive their earnest money back, provided they acted in good fait
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
h.
,C) Terminate the contract but lose their earnest money as liquidated damages.
cx cx cx cx cx cx cx cx cx cx cx
D) Force the seller to reduce the price to the appraised value.
cx cx cx cx cx cx cx cx cx cx cx
5. To be a "single-
cx cx cx cx
family residence" under the North Carolina Residential Property Disclosure Act, a propert
cx cx cx cx cx cx cx cx cx cx cx
y must be:
cx cx
A) Owned by the original builder.
cx cx cx cx cx
B) Occupied or intended to be occupied by one family.
cx cx cx cx cx cx cx cx cx
C) More than 5 acres in size.
cx cx cx cx cx cx
D) A new construction with a builder's warranty.
cx cx cx cx cx cx cx
6. A broker is acting as a seller’s agent. The broker’s cousin is very interested in the proper
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
ty and asks the broker about the seller’s motivation. The broker tells the cousin that the s
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
eller is desperate and will take 15% less than the list price. Which fiduciary duty has the br
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
oker most likely breached?
cx cx cx
A) Duty of Loyalty
cx cx cx
B) Duty of Confidentiality
cx cx cx
C) Duty of Disclosure
cx cx cx
D) Duty of Reasonable Care
cx cx cx cx
7. The “North Carolina Law of Agency” stipulates that a broker must provide a Working w
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
ith Real Estate Agents brochure to a potential buyer:
cx cx cx cx cx cx cx cx
A) Before the buyer signs a contract to purchase.
cx cx cx cx cx cx cx cx
B) At the first meeting to discuss a specific property.
cx cx cx cx cx cx cx cx cx
C) At the time an offer is submitted.
cx cx cx cx cx cx cx
D) Only when the buyer is ready to make a written offer.
cx cx cx cx cx cx cx cx cx cx cx
8. A buyer gives a broker a $5,000 earnest money check. Under Commission rules, the bro
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
ker must deposit the check into a trust account:
cx cx cx cx cx cx cx cx
A) Within 3 banking days of the offer's acceptance.
cx cx cx cx cx cx cx cx
B) Immediately upon receipt.
cx cx cx
C) Within 5 banking days after the contract is signed by both parties.
cx cx cx cx cx cx cx cx cx cx cx cx
D) Only after the loan commitment is received.
cx cx cx cx cx cx cx
9. A buyer obtains a loan for 90% of the purchase price. This is an example of a:
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
A) Conventional loan with Private Mortgage Insurance (PMI).
cx cx cx cx cx cx cx
,B) VA loan.
cx cx
C) FHA loan.
cx cx
D) Seller-financed loan.
cx cx
10. Which of the following requires a real estate license in North Carolina?
cx cx cx cx cx cx cx cx cx cx cx cx
A) An attorney selling a property as part of a court-ordered sale.
cx cx cx cx cx cx cx cx cx cx cx
B) A property owner selling their own single-family home.
cx cx cx cx cx cx cx cx
C) An employee of a builder who only shows model homes and collects contact information.
cx cx cx cx cx cx cx cx cx cx cx cx cx cx
D) A person who, for compensation, lists and sells manufactured homes that are permanently affi
cx cx cx cx cx cx cx cx cx cx cx cx cx cx
xed to a foundation.
cx cx cx
11. In a North Carolina closing, the buyer is responsible for:
cx cx cx cx cx cx cx cx cx cx
A) The deed preparation and recording fee.
cx cx cx cx cx cx
B) The deed of trust preparation and recording fee.
cx cx cx cx cx cx cx cx
C) The broker’s commission.
cx cx cx
D) Both A and B.
cx cx cx cx
12. Which of the following is an acceptable form of co-
cx cx cx cx cx cx cx cx cx cx
ownership in North Carolina that features the right of survivorship?
cx cx cx cx cx cx cx cx cx
A) Tenancy in Common
cx cx cx
B) Tenancy by the Entirety
cx cx cx cx
C) Joint Tenancy with Right of Survivorship
cx cx cx cx cx cx
D) All of the above.
cx cx cx cx
13. A broker receives an offer on a property. The seller counters the offer. The buyer does
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
not accept the counter-offer. The original offer is:
cx cx cx cx cx cx cx
A) Still valid until the expiration date.
cx cx cx cx cx cx
B) Void, as the counter-offer terminated it.
cx cx cx cx cx cx
C) Valid only if the seller decides to accept it later.
cx cx cx cx cx cx cx cx cx cx
D) Considered voidable.
cx cx
14. What is the minimum number of hours of continuing education (CE) a North Carolina
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
broker must complete each year?
cx cx cx cx
A) 4 hours of General CE.
cx cx cx cx cx
B) 8 hours of General CE.
cx cx cx cx cx
, C) 6 hours of General CE and 4 hours of Elective CE.
cx cx cx cx cx cx cx cx cx cx cx
D) 4 hours of General CE and 4 hours of Elective CE.
cx cx cx cx cx cx cx cx cx cx cx
15. A broker represents a buyer in a transaction. The broker finds out that the home has a
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
major foundation issue that the seller is unaware of. The buyer asks the broker not to tell
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
the seller. The broker should:
cx cx cx cx
A) Follow the buyer's instructions and keep the information confidential.
cx cx cx cx cx cx cx cx cx
B) Disclose the defect to the seller because all material facts must be disclosed to all parties.
cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx cx
C) Advise the buyer to disclose it, but if they refuse, terminate the agency relationship.
cx cx cx cx cx cx cx cx cx cx cx cx cx cx
D) Tell the buyer to walk away from the deal.
cx cx cx cx cx cx cx cx cx
16. Which agency relationship can be created without a written agreement in North Caroli
cx cx cx cx cx cx cx cx cx cx cx cx cx
na?
A) Single Agency
cx cx
B) Dual Agency
cx cx
C) Designated Agency
cx cx
D) Subagency
cx
17. The “radon” disclosure is required by North Carolina law for:
cx cx cx cx cx cx cx cx cx cx
A) All commercial transactions.
cx cx cx
B) All residential transactions.
cx cx cx
C) All transactions involving homes built before 1978.
cx cx cx cx cx cx cx
D) All transactions involving homes located in a designated radon zone.
cx cx cx cx cx cx cx cx cx cx
18. The seller of a property is required to provide a Residential Property Disclosure State
cx cx cx cx cx cx cx cx cx cx cx cx cx cx
ment to the buyer. If the seller fails to provide it, the buyer:
cx cx cx cx cx cx cx cx cx cx cx cx
A) Cannot back out of the contract.
cx cx cx cx cx cx
B) Can rescind the contract.
cx cx cx cx
C) Must go to closing but can sue for damages afterward.
cx cx cx cx cx cx cx cx cx cx
D) Can reduce the purchase price by the cost of a home inspection.
cx cx cx cx cx cx cx cx cx cx cx cx
19. What is the primary purpose of the Real Estate Settlement Procedures Act (RESPA)?
cx cx cx cx cx cx cx cx cx cx cx cx cx
A) To regulate loan interest rates.
cx cx cx cx cx
B) To prohibit kickbacks and require good faith estimates of closing costs.
cx cx cx cx cx cx cx cx cx cx cx
C) To require lenders to use standard appraisal forms.
cx cx cx cx cx cx cx cx
D) To allow lenders to escrow for taxes and insurance.
cx cx cx cx cx cx cx cx cx
