Superior NC Real Estate Important Final
Exam Questions And Correct Answers
(Verified Answers) Plus Rationales 2027
Q&A | Instant Download Pdf
1. Which document is primarily used to transfer ownership of real
property from seller to buyer?
A. Mortgage
B. Lease
C. Deed
D. Title insurance policy
Correct Answer: C
Rationale: A deed is the legal instrument that conveys ownership
interest in real property from one party to another. A mortgage is a loan
security instrument, a lease grants possession rights, and title insurance
protects against defects in title.
,2. In North Carolina, which entity regulates real estate license law?
A. HUD
B. North Carolina Real Estate Commission (NCREC)
C. County Clerk’s Office
D. Federal Reserve
Correct Answer: B
Rationale: The North Carolina Real Estate Commission is the governing
body responsible for licensing and regulating real estate brokers in the
state.
3. Which type of ownership involves two or more people with equal
rights and a right of survivorship?
A. Tenancy in common
B. Joint tenancy
C. Tenancy by the entirety
D. Severalty
Correct Answer: B
Rationale: Joint tenancy includes the right of survivorship, meaning
when one owner dies, their interest automatically passes to the
surviving co-owners.
,4. What is the primary purpose of a buyer agency agreement?
A. To transfer property title
B. To establish broker-client representation
C. To record ownership
D. To determine property taxes
Correct Answer: B
Rationale: A buyer agency agreement establishes a formal relationship
between a buyer and a real estate broker, defining duties and
responsibilities.
5. Which of the following best describes “consideration” in a contract?
A. Emotional intent
B. A written signature
C. Something of value exchanged
D. A legal witness
Correct Answer: C
Rationale: Consideration is something of value (money, services, goods,
or promises) exchanged between parties in a contract.
, 6. A mortgage is best defined as:
A. Ownership certificate
B. A lien securing repayment of a loan
C. A property tax document
D. A lease agreement
Correct Answer: B
Rationale: A mortgage is a security instrument that creates a lien on
real property to secure repayment of a loan.
7. Which term refers to the process of converting an encroachment
into legal ownership through continuous use?
A. Easement
B. Adverse possession
C. Eminent domain
D. Escrow
Correct Answer: B
Rationale: Adverse possession allows a person to claim ownership of
land under specific legal conditions after continuous, open, and hostile
use.
Exam Questions And Correct Answers
(Verified Answers) Plus Rationales 2027
Q&A | Instant Download Pdf
1. Which document is primarily used to transfer ownership of real
property from seller to buyer?
A. Mortgage
B. Lease
C. Deed
D. Title insurance policy
Correct Answer: C
Rationale: A deed is the legal instrument that conveys ownership
interest in real property from one party to another. A mortgage is a loan
security instrument, a lease grants possession rights, and title insurance
protects against defects in title.
,2. In North Carolina, which entity regulates real estate license law?
A. HUD
B. North Carolina Real Estate Commission (NCREC)
C. County Clerk’s Office
D. Federal Reserve
Correct Answer: B
Rationale: The North Carolina Real Estate Commission is the governing
body responsible for licensing and regulating real estate brokers in the
state.
3. Which type of ownership involves two or more people with equal
rights and a right of survivorship?
A. Tenancy in common
B. Joint tenancy
C. Tenancy by the entirety
D. Severalty
Correct Answer: B
Rationale: Joint tenancy includes the right of survivorship, meaning
when one owner dies, their interest automatically passes to the
surviving co-owners.
,4. What is the primary purpose of a buyer agency agreement?
A. To transfer property title
B. To establish broker-client representation
C. To record ownership
D. To determine property taxes
Correct Answer: B
Rationale: A buyer agency agreement establishes a formal relationship
between a buyer and a real estate broker, defining duties and
responsibilities.
5. Which of the following best describes “consideration” in a contract?
A. Emotional intent
B. A written signature
C. Something of value exchanged
D. A legal witness
Correct Answer: C
Rationale: Consideration is something of value (money, services, goods,
or promises) exchanged between parties in a contract.
, 6. A mortgage is best defined as:
A. Ownership certificate
B. A lien securing repayment of a loan
C. A property tax document
D. A lease agreement
Correct Answer: B
Rationale: A mortgage is a security instrument that creates a lien on
real property to secure repayment of a loan.
7. Which term refers to the process of converting an encroachment
into legal ownership through continuous use?
A. Easement
B. Adverse possession
C. Eminent domain
D. Escrow
Correct Answer: B
Rationale: Adverse possession allows a person to claim ownership of
land under specific legal conditions after continuous, open, and hostile
use.
