NORTH CAROLINA REAL ESTATE BROKER EXAM
PRACTICE QUESTIONS AND CORRECT ANSWER WITH
EXPLANATION LATEST 2025-2026
1. The North Carolina Real Estate Commission regulates:
A. Property taxes
B. Real estate licensing and enforcement
C. Home insurance
D. Building permits
Answer: B
Rationale: The North Carolina Real Estate Commission oversees licensing and disciplinary
actions.
2. In North Carolina, all entry-level licensees are initially licensed as:
A. Salespersons
B. Provisional brokers
C. Associate brokers
D. Realtors
Answer: B
Rationale: New licensees are issued provisional broker licenses until post-licensing requirements
are completed.
3. Real property includes:
A. Furniture
B. Land and attached improvements
C. Vehicles
D. Stocks
Answer: B
Rationale: Real property includes land and permanent attachments.
4. Personal property is also called:
,A. Fixtures
B. Chattels
C. Easements
D. Estates
Answer: B
Rationale: Chattels are movable personal property.
5. A fixture is:
A. Temporary property
B. Permanently attached property
C. Insurance coverage
D. A lease agreement
Answer: B
Rationale: Fixtures become part of the real estate.
6. The Statute of Frauds requires real estate contracts to be:
A. Oral
B. Written
C. Implied
D. Optional
Answer: B
Rationale: Real estate contracts must be written to be enforceable.
7. Fiduciary duties include:
A. Loyalty
B. Tax preparation
C. Appraisal
D. Lending
Answer: A
Rationale: Loyalty is a fiduciary duty owed to clients.
8. Which is NOT a fiduciary duty?
, A. Confidentiality
B. Accounting
C. Advertising
D. Obedience
Answer: C
Rationale: Advertising is not considered a fiduciary duty.
9. The Fair Housing Act prohibits discrimination based on:
A. Occupation
B. Protected classes
C. Education
D. Credit score
Answer: B
Rationale: Federal law protects individuals in protected classes.
10. Steering refers to:
A. Loan counseling
B. Guiding buyers based on protected class
C. Property inspections
D. Appraisals
Answer: B
Rationale: Steering is an illegal discriminatory practice.
11. Blockbusting involves:
A. Remodeling property
B. Encouraging panic selling due to demographic changes
C. Appraisal methods
D. Mortgage servicing
Answer: B
Rationale: Blockbusting violates fair housing laws.
12. A deed transfers:
PRACTICE QUESTIONS AND CORRECT ANSWER WITH
EXPLANATION LATEST 2025-2026
1. The North Carolina Real Estate Commission regulates:
A. Property taxes
B. Real estate licensing and enforcement
C. Home insurance
D. Building permits
Answer: B
Rationale: The North Carolina Real Estate Commission oversees licensing and disciplinary
actions.
2. In North Carolina, all entry-level licensees are initially licensed as:
A. Salespersons
B. Provisional brokers
C. Associate brokers
D. Realtors
Answer: B
Rationale: New licensees are issued provisional broker licenses until post-licensing requirements
are completed.
3. Real property includes:
A. Furniture
B. Land and attached improvements
C. Vehicles
D. Stocks
Answer: B
Rationale: Real property includes land and permanent attachments.
4. Personal property is also called:
,A. Fixtures
B. Chattels
C. Easements
D. Estates
Answer: B
Rationale: Chattels are movable personal property.
5. A fixture is:
A. Temporary property
B. Permanently attached property
C. Insurance coverage
D. A lease agreement
Answer: B
Rationale: Fixtures become part of the real estate.
6. The Statute of Frauds requires real estate contracts to be:
A. Oral
B. Written
C. Implied
D. Optional
Answer: B
Rationale: Real estate contracts must be written to be enforceable.
7. Fiduciary duties include:
A. Loyalty
B. Tax preparation
C. Appraisal
D. Lending
Answer: A
Rationale: Loyalty is a fiduciary duty owed to clients.
8. Which is NOT a fiduciary duty?
, A. Confidentiality
B. Accounting
C. Advertising
D. Obedience
Answer: C
Rationale: Advertising is not considered a fiduciary duty.
9. The Fair Housing Act prohibits discrimination based on:
A. Occupation
B. Protected classes
C. Education
D. Credit score
Answer: B
Rationale: Federal law protects individuals in protected classes.
10. Steering refers to:
A. Loan counseling
B. Guiding buyers based on protected class
C. Property inspections
D. Appraisals
Answer: B
Rationale: Steering is an illegal discriminatory practice.
11. Blockbusting involves:
A. Remodeling property
B. Encouraging panic selling due to demographic changes
C. Appraisal methods
D. Mortgage servicing
Answer: B
Rationale: Blockbusting violates fair housing laws.
12. A deed transfers:
