SUPERIOR NC REAL ESTATE FINAL EXAM ACTUAL EXAM 2026 | ALL
QUESTIONS AND CORRECT ANSWERS | VERIFIED ANSWERS | BRAND
NEW VERSION!
1. A North Carolina broker is meeting a prospective buyer for the first time,
and the conversation develops into a substantial discussion about the
buyer’s property needs, financing plans, and potential properties. Under
North Carolina brokerage requirements, what should the broker do
regarding the Working With Real Estate Agents disclosure?
A. Wait until the buyer submits an offer before discussing agency
B. Provide and review the required disclosure at first substantial contact
C. Provide the disclosure only if the buyer specifically requests it
D. Provide the disclosure only after the buyer signs a purchase contract
Answer: B
2. A North Carolina broker is representing a buyer who wants to submit an
offer on a residential property. The broker has been providing brokerage
services but has not yet obtained a written buyer agency agreement. Which
action is most appropriate before proceeding with the offer?
A. Obtain the required written agency agreement
B. Proceed because oral agency agreements are always sufficient
C. Wait until closing to document the agency relationship
D. Ask the listing broker to create the buyer agency agreement
Answer: A
3. A broker receives earnest money belonging to a client and is responsible for
handling the funds in a fiduciary capacity. Which account is generally
appropriate for holding such funds?
A. The broker’s personal checking account
B. The broker’s operating account
C. A properly designated trust or escrow account
D. The broker’s savings account
Answer: C
pg. 1
, 4. A broker receives trust money on a Monday and is required to deposit it
according to North Carolina Commission rules. Assuming no applicable
exception changes the requirement, which time frame applies?
A. Within three banking days
B. Within ten calendar days
C. At the end of the month
D. Only after the transaction closes
Answer: A
5. A broker discovers that a property has a significant structural defect that
could affect a reasonable buyer’s decision to purchase it. The seller asks the
broker not to mention the defect. What should the broker do?
A. Follow the seller’s instructions because the seller is the client
B. Disclose the material fact as required
C. Mention it only if another broker asks
D. Wait until after the buyer makes an offer
Answer: B
6. A buyer asks a broker whether a property has a known environmental
condition that could affect the buyer’s decision. The broker has actual
knowledge of the condition. Which response is most appropriate?
A. Refuse to discuss the condition because the seller owns the property
B. State that the buyer must discover all facts independently
C. Disclose the known material fact
D. Tell the buyer that disclosure would violate confidentiality
Answer: C
7. A broker places money belonging to a client into the broker’s personal bank
account temporarily and intends to forward the money to the client later.
What prohibited practice does this situation most directly illustrate?
A. Puffing
B. Commingling
C. Novation
pg. 2
, D. Conversion of title
Answer: B
8. A broker is maintaining a trust account and wants to keep a small amount of
company money in that account solely to cover bank service charges. Which
statement best describes the North Carolina rule?
A. No company funds can ever be maintained in the account
B. Unlimited company funds may be maintained
C. A limited amount of company funds may be maintained for service
charges
D. Company funds must equal at least 10 percent of trust funds
Answer: C
9. A buyer and seller dispute who should receive earnest money after a
transaction fails to close. The broker is holding the disputed funds in a trust
account. What should the broker generally do?
A. Give the funds to whichever party demands them first
B. Keep the funds until receiving proper authorization or a court order
C. Give the funds to the listing broker
D. Deposit the funds into the broker’s operating account
Answer: B
10. A North Carolina broker advertises a property for sale but omits the
brokerage firm’s identifying information from the advertisement. Which
concern is most directly raised?
A. Advertising compliance
B. Zoning compliance
C. Appraisal methodology
D. Recording requirements
Answer: A
11. A broker tells a buyer that a property is “the best investment in the entire
county” even though the statement is only the broker’s opinion and cannot
be objectively verified. Which concept is most closely associated with this
type of promotional statement?
pg. 3
, A. Puffing
B. Conversion
C. Steering
D. Novation
Answer: A
12. A broker knowingly makes a false factual statement about the square
footage of a property to encourage a buyer to submit an offer. Which issue
is most directly involved?
A. Misrepresentation
B. Legal description
C. Constructive eviction
D. Escheat
Answer: A
13. A broker accidentally provides incorrect information about a property but
had no reason to know the information was false. Which concept may apply
depending on the circumstances?
A. Innocent misrepresentation
B. Redlining
C. Commingling
D. Subrogation
Answer: A
14. A seller tells a broker that the roof leaks during heavy rain and specifically
instructs the broker not to disclose the condition. What should the broker
recognize about this information?
A. It is irrelevant because the seller owns the property
B. It may constitute a material fact requiring disclosure
C. It can be concealed if the seller reduces the price
D. It becomes irrelevant once the property is listed
Answer: B
15. A broker is asked to determine whether a prospective buyer is likely to
enjoy living in a particular neighborhood based on the racial composition of
pg. 4
QUESTIONS AND CORRECT ANSWERS | VERIFIED ANSWERS | BRAND
NEW VERSION!
1. A North Carolina broker is meeting a prospective buyer for the first time,
and the conversation develops into a substantial discussion about the
buyer’s property needs, financing plans, and potential properties. Under
North Carolina brokerage requirements, what should the broker do
regarding the Working With Real Estate Agents disclosure?
A. Wait until the buyer submits an offer before discussing agency
B. Provide and review the required disclosure at first substantial contact
C. Provide the disclosure only if the buyer specifically requests it
D. Provide the disclosure only after the buyer signs a purchase contract
Answer: B
2. A North Carolina broker is representing a buyer who wants to submit an
offer on a residential property. The broker has been providing brokerage
services but has not yet obtained a written buyer agency agreement. Which
action is most appropriate before proceeding with the offer?
A. Obtain the required written agency agreement
B. Proceed because oral agency agreements are always sufficient
C. Wait until closing to document the agency relationship
D. Ask the listing broker to create the buyer agency agreement
Answer: A
3. A broker receives earnest money belonging to a client and is responsible for
handling the funds in a fiduciary capacity. Which account is generally
appropriate for holding such funds?
A. The broker’s personal checking account
B. The broker’s operating account
C. A properly designated trust or escrow account
D. The broker’s savings account
Answer: C
pg. 1
, 4. A broker receives trust money on a Monday and is required to deposit it
according to North Carolina Commission rules. Assuming no applicable
exception changes the requirement, which time frame applies?
A. Within three banking days
B. Within ten calendar days
C. At the end of the month
D. Only after the transaction closes
Answer: A
5. A broker discovers that a property has a significant structural defect that
could affect a reasonable buyer’s decision to purchase it. The seller asks the
broker not to mention the defect. What should the broker do?
A. Follow the seller’s instructions because the seller is the client
B. Disclose the material fact as required
C. Mention it only if another broker asks
D. Wait until after the buyer makes an offer
Answer: B
6. A buyer asks a broker whether a property has a known environmental
condition that could affect the buyer’s decision. The broker has actual
knowledge of the condition. Which response is most appropriate?
A. Refuse to discuss the condition because the seller owns the property
B. State that the buyer must discover all facts independently
C. Disclose the known material fact
D. Tell the buyer that disclosure would violate confidentiality
Answer: C
7. A broker places money belonging to a client into the broker’s personal bank
account temporarily and intends to forward the money to the client later.
What prohibited practice does this situation most directly illustrate?
A. Puffing
B. Commingling
C. Novation
pg. 2
, D. Conversion of title
Answer: B
8. A broker is maintaining a trust account and wants to keep a small amount of
company money in that account solely to cover bank service charges. Which
statement best describes the North Carolina rule?
A. No company funds can ever be maintained in the account
B. Unlimited company funds may be maintained
C. A limited amount of company funds may be maintained for service
charges
D. Company funds must equal at least 10 percent of trust funds
Answer: C
9. A buyer and seller dispute who should receive earnest money after a
transaction fails to close. The broker is holding the disputed funds in a trust
account. What should the broker generally do?
A. Give the funds to whichever party demands them first
B. Keep the funds until receiving proper authorization or a court order
C. Give the funds to the listing broker
D. Deposit the funds into the broker’s operating account
Answer: B
10. A North Carolina broker advertises a property for sale but omits the
brokerage firm’s identifying information from the advertisement. Which
concern is most directly raised?
A. Advertising compliance
B. Zoning compliance
C. Appraisal methodology
D. Recording requirements
Answer: A
11. A broker tells a buyer that a property is “the best investment in the entire
county” even though the statement is only the broker’s opinion and cannot
be objectively verified. Which concept is most closely associated with this
type of promotional statement?
pg. 3
, A. Puffing
B. Conversion
C. Steering
D. Novation
Answer: A
12. A broker knowingly makes a false factual statement about the square
footage of a property to encourage a buyer to submit an offer. Which issue
is most directly involved?
A. Misrepresentation
B. Legal description
C. Constructive eviction
D. Escheat
Answer: A
13. A broker accidentally provides incorrect information about a property but
had no reason to know the information was false. Which concept may apply
depending on the circumstances?
A. Innocent misrepresentation
B. Redlining
C. Commingling
D. Subrogation
Answer: A
14. A seller tells a broker that the roof leaks during heavy rain and specifically
instructs the broker not to disclose the condition. What should the broker
recognize about this information?
A. It is irrelevant because the seller owns the property
B. It may constitute a material fact requiring disclosure
C. It can be concealed if the seller reduces the price
D. It becomes irrelevant once the property is listed
Answer: B
15. A broker is asked to determine whether a prospective buyer is likely to
enjoy living in a particular neighborhood based on the racial composition of
pg. 4
