North Carolina Real Estate Final Exam
Questions & Answers 2026 Study Guide | NC
Licensing Practice Test, Verified Solutions &
Real Estate Exam Prep
• This study guide contains 200 expertly crafted multiple-choice questions covering
all major topics tested on the North Carolina Real Estate Licensing Exam, including
property ownership, contracts, agency law, financing, and NC-specific license law.
• Each question features five answer options (A–E), a clearly highlighted correct
answer in bold, and a detailed EXPERT RATIONALE to reinforce understanding and
maximize your exam readiness.
NORTH CAROLINA REAL ESTATE FINAL EXAM — 200 PRACTICE QUESTIONS
1. Under North Carolina license law, which of the following activities requires
a real estate license?
A. Selling your own property without the help of an agent
B. Managing property owned by a family member for free
C. Auctioning real estate for compensation on behalf of another
D. Distributing flyers for a licensed broker as a volunteer
E. Attending a real estate closing as a witness
Correct Answer: C. Auctioning real estate for compensation on behalf of
another
EXPERT RATIONALE: North Carolina General Statutes Chapter 93A requires a real
estate license for anyone who performs real estate activities — including auctioning
— for compensation on behalf of another person. Selling your own property,
managing a family member's property without compensation, and performing non-
compensated tasks do not require a license.
,2. The North Carolina Real Estate Commission (NCREC) is composed of how
many members?
A. Five members appointed by the Governor
B. Seven members — five appointed by the Governor and two by the General
Assembly
C. Nine members appointed by the General Assembly
D. Six members appointed by the Governor
E. Eight members — four appointed by the Governor and four elected by licensees
Correct Answer: B. Seven members — five appointed by the Governor and two
by the General Assembly
EXPERT RATIONALE: The NCREC consists of seven members. Five are appointed by
the Governor and two are appointed by the General Assembly. The Commission
oversees licensing, education, and disciplinary matters for real estate professionals
in North Carolina.
3. A provisional broker in North Carolina must complete how many hours of
postlicensing education within the first 18 months of licensure?
A. 30 hours
B. 60 hours
C. 75 hours
D. 45 hours
E. 90 hours
Correct Answer: C. 75 hours
EXPERT RATIONALE: North Carolina requires provisional brokers to complete 90
hours of postlicensing education — divided into three 30-hour courses — within 18
months of initial licensure. If they fail to do so, their license is automatically placed
,on inactive status. Note: 75 hours is a common distractor; the correct total is 90
hours.
4. Which of the following best describes "dual agency" in North Carolina?
A. When a broker represents two buyers simultaneously
B. When a firm represents both the buyer and seller in the same transaction
C. When two brokers from different firms co-represent a single client
D. When a broker holds licenses in two states
E. When a buyer and seller share the same attorney at closing
Correct Answer: B. When a firm represents both the buyer and seller in the
same transaction
EXPERT RATIONALE: Dual agency occurs when a single brokerage firm represents
both the buyer and the seller in the same real estate transaction. In North Carolina,
dual agency must be disclosed to and consented to by both parties. It creates
potential conflicts of interest because the broker owes fiduciary duties to both
sides.
5. What is the maximum period for which a real estate license may be placed
on inactive status in North Carolina before it expires?
A. One year
B. Three years
C. Five years
D. Indefinitely, as long as renewal fees are paid
E. Two years
Correct Answer: D. Indefinitely, as long as renewal fees are paid
, EXPERT RATIONALE: In North Carolina, a license may remain on inactive status
indefinitely provided the licensee continues to pay the annual renewal fee. There is
no statutory maximum period for inactive status, but the licensee cannot practice
real estate while inactive.
6. A real estate broker in North Carolina owes which of the following duties to
ALL parties in a transaction, regardless of agency?
A. Loyalty and confidentiality
B. Obedience to all client instructions
C. Disclosure of material facts, honesty, and accounting
D. Negotiating the best possible price for the client
E. Full fiduciary representation
Correct Answer: C. Disclosure of material facts, honesty, and accounting
EXPERT RATIONALE: North Carolina law requires all brokers — regardless of who
they represent — to be honest, disclose material facts, and properly account for all
funds. Fiduciary duties such as loyalty, confidentiality, and obedience are owed only
to the broker's own client, not to all parties.
7. In North Carolina, the Working with Real Estate Agents (WWREA) disclosure
must be provided:
A. Only at the time of closing
B. At the first substantial contact with a prospective buyer or seller
C. Only when a written agency agreement is signed
D. After an offer has been made
E. Only when the agent is working as a buyer's agent
Correct Answer: B. At the first substantial contact with a prospective buyer or
seller
Questions & Answers 2026 Study Guide | NC
Licensing Practice Test, Verified Solutions &
Real Estate Exam Prep
• This study guide contains 200 expertly crafted multiple-choice questions covering
all major topics tested on the North Carolina Real Estate Licensing Exam, including
property ownership, contracts, agency law, financing, and NC-specific license law.
• Each question features five answer options (A–E), a clearly highlighted correct
answer in bold, and a detailed EXPERT RATIONALE to reinforce understanding and
maximize your exam readiness.
NORTH CAROLINA REAL ESTATE FINAL EXAM — 200 PRACTICE QUESTIONS
1. Under North Carolina license law, which of the following activities requires
a real estate license?
A. Selling your own property without the help of an agent
B. Managing property owned by a family member for free
C. Auctioning real estate for compensation on behalf of another
D. Distributing flyers for a licensed broker as a volunteer
E. Attending a real estate closing as a witness
Correct Answer: C. Auctioning real estate for compensation on behalf of
another
EXPERT RATIONALE: North Carolina General Statutes Chapter 93A requires a real
estate license for anyone who performs real estate activities — including auctioning
— for compensation on behalf of another person. Selling your own property,
managing a family member's property without compensation, and performing non-
compensated tasks do not require a license.
,2. The North Carolina Real Estate Commission (NCREC) is composed of how
many members?
A. Five members appointed by the Governor
B. Seven members — five appointed by the Governor and two by the General
Assembly
C. Nine members appointed by the General Assembly
D. Six members appointed by the Governor
E. Eight members — four appointed by the Governor and four elected by licensees
Correct Answer: B. Seven members — five appointed by the Governor and two
by the General Assembly
EXPERT RATIONALE: The NCREC consists of seven members. Five are appointed by
the Governor and two are appointed by the General Assembly. The Commission
oversees licensing, education, and disciplinary matters for real estate professionals
in North Carolina.
3. A provisional broker in North Carolina must complete how many hours of
postlicensing education within the first 18 months of licensure?
A. 30 hours
B. 60 hours
C. 75 hours
D. 45 hours
E. 90 hours
Correct Answer: C. 75 hours
EXPERT RATIONALE: North Carolina requires provisional brokers to complete 90
hours of postlicensing education — divided into three 30-hour courses — within 18
months of initial licensure. If they fail to do so, their license is automatically placed
,on inactive status. Note: 75 hours is a common distractor; the correct total is 90
hours.
4. Which of the following best describes "dual agency" in North Carolina?
A. When a broker represents two buyers simultaneously
B. When a firm represents both the buyer and seller in the same transaction
C. When two brokers from different firms co-represent a single client
D. When a broker holds licenses in two states
E. When a buyer and seller share the same attorney at closing
Correct Answer: B. When a firm represents both the buyer and seller in the
same transaction
EXPERT RATIONALE: Dual agency occurs when a single brokerage firm represents
both the buyer and the seller in the same real estate transaction. In North Carolina,
dual agency must be disclosed to and consented to by both parties. It creates
potential conflicts of interest because the broker owes fiduciary duties to both
sides.
5. What is the maximum period for which a real estate license may be placed
on inactive status in North Carolina before it expires?
A. One year
B. Three years
C. Five years
D. Indefinitely, as long as renewal fees are paid
E. Two years
Correct Answer: D. Indefinitely, as long as renewal fees are paid
, EXPERT RATIONALE: In North Carolina, a license may remain on inactive status
indefinitely provided the licensee continues to pay the annual renewal fee. There is
no statutory maximum period for inactive status, but the licensee cannot practice
real estate while inactive.
6. A real estate broker in North Carolina owes which of the following duties to
ALL parties in a transaction, regardless of agency?
A. Loyalty and confidentiality
B. Obedience to all client instructions
C. Disclosure of material facts, honesty, and accounting
D. Negotiating the best possible price for the client
E. Full fiduciary representation
Correct Answer: C. Disclosure of material facts, honesty, and accounting
EXPERT RATIONALE: North Carolina law requires all brokers — regardless of who
they represent — to be honest, disclose material facts, and properly account for all
funds. Fiduciary duties such as loyalty, confidentiality, and obedience are owed only
to the broker's own client, not to all parties.
7. In North Carolina, the Working with Real Estate Agents (WWREA) disclosure
must be provided:
A. Only at the time of closing
B. At the first substantial contact with a prospective buyer or seller
C. Only when a written agency agreement is signed
D. After an offer has been made
E. Only when the agent is working as a buyer's agent
Correct Answer: B. At the first substantial contact with a prospective buyer or
seller
