NORTH CAROLINA REAL ESTATE
PRELICENSING | COMPREHENSIVE EXAM
PREP, PRACTICE QUESTIONS, CORRECT
ANSWERS AND STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,Acceptance Expression of intent by the offer to be bound by the terms of the offer; must be in writing
if the contract pertains to real property. acceptance must be communicated to the
opposite party to create a contract.
Accession Acquiring title to additions or improvements to real property as a result of the annexation
of fixtures or the accretion of alluvial deposits along the banks of streams.
Accretion The increase or addition of land by the deposit of sand or soil washed up naturally from a
river, lake, or sea.
Accrued Items On a closing statement, items of expense that are incurred but not yet payable, such as
interest on a mortgage loan or taxes on real property. (Payments are not due yet)
Acre A measurement of land equal to 43,560 square feet.
Actual Eviction The legal process that results in the tenants being physically removed from the leased
premises; summary ejectment.
Adjustable Rate Mortgage (ARM) A loan characterized by the fluctuating interest rate, usually one tied to a published
index. Can for adjustments on periodic interest, lifetime interest, and payment amounts
are normal.
Adjusted Basis Purchase price at the time you purchased + closing costs at time you bought it + any
capital improvements = ____________
Ad Valorem Tax A tax levied according to value, generally use to refer to real estate tax.
Adverse Possession The open, continuous, exclusive, adverse, notorious (OCEAN) possession of another land
under a claim of title. Possession for a statutory period of 20 years in North Carolina may
be means of acquiring Title.
OCEAN-- Adverse Possession Open. Continuous. Exclusive. Adverse. Notorious
Aesthetic Zoning Zoning ordinances that regulate the appearance of real property, such as exterior color,
exterior construction material, required screening and fencing.
,Age Life Method A method of depreciation computed by dividing the REPLACEMENT cost of a property
by the number of years of remaining useful life; also called the straight-line method.
Usually used for historic properties.
Straight Line Method A method of depreciation computed by dividing the REPLACEMENT cost of a property
by the number of years of remaining useful life; Also called the Age Life Method. Usually
used for historic properties.
Agency The relationship between a PRINCIPAL (Client) and an AGENT (firm) wherein the agent is
authorized to represent the principal in certain transactions.
Agent One who acts or has the power to act for another. A fiduciary relationship is created
under the law of agency when a property owner, as the principal, excites a listing
agreement or management contract authorizing a licensed real estate broker to be the
property owners agent.
Agricultural Fixture In NC, a fixture attached to leased property by a tenant farmer is considered the
landowners real property rather than the tenants personal property.
Air Rights The Right to use the open space above a property, usually allowing the surface of the
land to be used for another purpose.
Alienation The act of transferring property to another. May be voluntary, such as by gift of sale, or
involuntary, as through emirate domain or adverse possession.
Alienation Clause This prevents the borrower from letting someone else assume the debt without the
lenders approval.
Americans with Disabilities Act (ADA) Federal act implementing regulations that protect citizens with mental or physical
disabilities. Does not apply to residential housing but to commercial facilities and places
of public accommodation.
American Land Title Association (ALTA) Policy A Title insurance policy that protects the interest in a collateral property of a mortgage
lender the originate a new real estate loan.
Amortized Loan A loan in which principal as well as interest is payable in periodic installments over the
term of the loan.
, Annual Percentage Rate (APR) The relationship of the total finance charges associated with a loan. This must be
disclosed to borrowers by lenders under the Truth in Lending Act. Only non trigger word
under Regulation Z.
Anticipation The appraisal principal that value can increase or decrease based on the expectation of
some future benefit or detriment affecting the property.
Antitrust Laws Laws designed to preserve the free enterprise of the open marketplace by making illegal
certain private conspiracies and combinations formed to minimize competition. Most
violations of these laws in the real estate business involve either price fixing or allocation
of customers or markets.
Price Fixing Brokers conspiring to set fixed compensation rates.
Allocation of Customers or Markets Brokers agreeing to limit their areas of trade or dealing to certain areas or properties.
Appraisal An estimate of the quantity, quality, or value of something. The process through which
conclusions of property value are obtained; also refers to the report that sets forth the
process of estimation and conclusion of value.
Appreciation AN increase in the with of value a property due to economic or related causes, which
may prove to be either temporary or terminate; opposite of depreciation.
Appurtenance A right, a privilege, or an improvement belonging to, and passing with the land. Runs with
the land.
Arms Length Transaction A transaction where the parties are dealing from equal bargaining positions.
Asbestos A fire resistant mineral fiber used in a wide variety of building supplies prior to 1978.
Environmental health hazard, when friable, that can cause respiratory diseases and
cancer. Must be encapsulated.
Assessment The imposition of a tax, charge or levy usually according to established rates.
Assessment Official valuation of property for the purpose of establishing assessed value for tax
purposes.
PRELICENSING | COMPREHENSIVE EXAM
PREP, PRACTICE QUESTIONS, CORRECT
ANSWERS AND STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,Acceptance Expression of intent by the offer to be bound by the terms of the offer; must be in writing
if the contract pertains to real property. acceptance must be communicated to the
opposite party to create a contract.
Accession Acquiring title to additions or improvements to real property as a result of the annexation
of fixtures or the accretion of alluvial deposits along the banks of streams.
Accretion The increase or addition of land by the deposit of sand or soil washed up naturally from a
river, lake, or sea.
Accrued Items On a closing statement, items of expense that are incurred but not yet payable, such as
interest on a mortgage loan or taxes on real property. (Payments are not due yet)
Acre A measurement of land equal to 43,560 square feet.
Actual Eviction The legal process that results in the tenants being physically removed from the leased
premises; summary ejectment.
Adjustable Rate Mortgage (ARM) A loan characterized by the fluctuating interest rate, usually one tied to a published
index. Can for adjustments on periodic interest, lifetime interest, and payment amounts
are normal.
Adjusted Basis Purchase price at the time you purchased + closing costs at time you bought it + any
capital improvements = ____________
Ad Valorem Tax A tax levied according to value, generally use to refer to real estate tax.
Adverse Possession The open, continuous, exclusive, adverse, notorious (OCEAN) possession of another land
under a claim of title. Possession for a statutory period of 20 years in North Carolina may
be means of acquiring Title.
OCEAN-- Adverse Possession Open. Continuous. Exclusive. Adverse. Notorious
Aesthetic Zoning Zoning ordinances that regulate the appearance of real property, such as exterior color,
exterior construction material, required screening and fencing.
,Age Life Method A method of depreciation computed by dividing the REPLACEMENT cost of a property
by the number of years of remaining useful life; also called the straight-line method.
Usually used for historic properties.
Straight Line Method A method of depreciation computed by dividing the REPLACEMENT cost of a property
by the number of years of remaining useful life; Also called the Age Life Method. Usually
used for historic properties.
Agency The relationship between a PRINCIPAL (Client) and an AGENT (firm) wherein the agent is
authorized to represent the principal in certain transactions.
Agent One who acts or has the power to act for another. A fiduciary relationship is created
under the law of agency when a property owner, as the principal, excites a listing
agreement or management contract authorizing a licensed real estate broker to be the
property owners agent.
Agricultural Fixture In NC, a fixture attached to leased property by a tenant farmer is considered the
landowners real property rather than the tenants personal property.
Air Rights The Right to use the open space above a property, usually allowing the surface of the
land to be used for another purpose.
Alienation The act of transferring property to another. May be voluntary, such as by gift of sale, or
involuntary, as through emirate domain or adverse possession.
Alienation Clause This prevents the borrower from letting someone else assume the debt without the
lenders approval.
Americans with Disabilities Act (ADA) Federal act implementing regulations that protect citizens with mental or physical
disabilities. Does not apply to residential housing but to commercial facilities and places
of public accommodation.
American Land Title Association (ALTA) Policy A Title insurance policy that protects the interest in a collateral property of a mortgage
lender the originate a new real estate loan.
Amortized Loan A loan in which principal as well as interest is payable in periodic installments over the
term of the loan.
, Annual Percentage Rate (APR) The relationship of the total finance charges associated with a loan. This must be
disclosed to borrowers by lenders under the Truth in Lending Act. Only non trigger word
under Regulation Z.
Anticipation The appraisal principal that value can increase or decrease based on the expectation of
some future benefit or detriment affecting the property.
Antitrust Laws Laws designed to preserve the free enterprise of the open marketplace by making illegal
certain private conspiracies and combinations formed to minimize competition. Most
violations of these laws in the real estate business involve either price fixing or allocation
of customers or markets.
Price Fixing Brokers conspiring to set fixed compensation rates.
Allocation of Customers or Markets Brokers agreeing to limit their areas of trade or dealing to certain areas or properties.
Appraisal An estimate of the quantity, quality, or value of something. The process through which
conclusions of property value are obtained; also refers to the report that sets forth the
process of estimation and conclusion of value.
Appreciation AN increase in the with of value a property due to economic or related causes, which
may prove to be either temporary or terminate; opposite of depreciation.
Appurtenance A right, a privilege, or an improvement belonging to, and passing with the land. Runs with
the land.
Arms Length Transaction A transaction where the parties are dealing from equal bargaining positions.
Asbestos A fire resistant mineral fiber used in a wide variety of building supplies prior to 1978.
Environmental health hazard, when friable, that can cause respiratory diseases and
cancer. Must be encapsulated.
Assessment The imposition of a tax, charge or levy usually according to established rates.
Assessment Official valuation of property for the purpose of establishing assessed value for tax
purposes.
