NC Post Licensing – 303 Exam Questions with Verified
Answers 2026/2027 New Update
Definition of Core area in a commercial building - VIP - answer -area used for building functions.
For Example
Lobbies, stair, mechanical rooms, elevators, restrooms
Definition of Rentable area or square footage - VIP - answer -Core area plus Usable area
Definition of Floor Plate - answer -Area of the floor determined by measuring the exterior walls
Definition of Useable area - VIP - answer -The floor plate minus the core area
Office rental rates are usually calculated - VIP - answer -per square foot for the rentable area
Tenant Improvements - answer -Commercial lease or sale in which TENANT makes and pays for
repairs or improvement
Upfits - answer -Commercial lease or sale in which OWNER makes and pays for repairs or
improvement
1|Page
,Passthrough provisions in commercial real estate are - answer -Taxes, Insurance, and
Maintenance
Net lease with Base Years Stop (BYS) - answer -Means the owner pays on the pass through
provisions the first year and the tenant pays in the subsequent years that is over the base year
amount
Absorption Study - VIP - answer -analyzing the amount of space leased and vacant over a
particular period of time
Key factors that affect commercial real estate - answer -Location
Area demographics
Traffic patterns
Income levels
Growth
Trends
Retail spaces are usually leased - answer -square foot as an annual dollar amount
2|Page
, In a Commercial Purchase a common practice is to - answer -Use Letters of Intent before a final
purchase contract is created by parties
Inspection period in a commercial purchase is - answer -10 day free look period
Property used in a trade or business may qualify for tax - answer -depreciation
Capital gains - answer -if real estate has not been an owner occupied for 2 out of the last 5 years
is subject to Capital GAINS TAX
1031 Tax Deferred Exchange - answer -Referred to as "like-kind" properties, can defer capital
gains tax
Boot - answer -Funds an investor/owner retains and does not reinvest after sale of property
An Active Real Estate License is required when - VIP - answer -Assisting another for
compensation in the providing of brokerage services including referral of business
An unlicensed person may engage in real estate activity (EXEMPTIONS) if - VIP - answer -1)
Owns the subject property
3|Page
Answers 2026/2027 New Update
Definition of Core area in a commercial building - VIP - answer -area used for building functions.
For Example
Lobbies, stair, mechanical rooms, elevators, restrooms
Definition of Rentable area or square footage - VIP - answer -Core area plus Usable area
Definition of Floor Plate - answer -Area of the floor determined by measuring the exterior walls
Definition of Useable area - VIP - answer -The floor plate minus the core area
Office rental rates are usually calculated - VIP - answer -per square foot for the rentable area
Tenant Improvements - answer -Commercial lease or sale in which TENANT makes and pays for
repairs or improvement
Upfits - answer -Commercial lease or sale in which OWNER makes and pays for repairs or
improvement
1|Page
,Passthrough provisions in commercial real estate are - answer -Taxes, Insurance, and
Maintenance
Net lease with Base Years Stop (BYS) - answer -Means the owner pays on the pass through
provisions the first year and the tenant pays in the subsequent years that is over the base year
amount
Absorption Study - VIP - answer -analyzing the amount of space leased and vacant over a
particular period of time
Key factors that affect commercial real estate - answer -Location
Area demographics
Traffic patterns
Income levels
Growth
Trends
Retail spaces are usually leased - answer -square foot as an annual dollar amount
2|Page
, In a Commercial Purchase a common practice is to - answer -Use Letters of Intent before a final
purchase contract is created by parties
Inspection period in a commercial purchase is - answer -10 day free look period
Property used in a trade or business may qualify for tax - answer -depreciation
Capital gains - answer -if real estate has not been an owner occupied for 2 out of the last 5 years
is subject to Capital GAINS TAX
1031 Tax Deferred Exchange - answer -Referred to as "like-kind" properties, can defer capital
gains tax
Boot - answer -Funds an investor/owner retains and does not reinvest after sale of property
An Active Real Estate License is required when - VIP - answer -Assisting another for
compensation in the providing of brokerage services including referral of business
An unlicensed person may engage in real estate activity (EXEMPTIONS) if - VIP - answer -1)
Owns the subject property
3|Page
