NC Practice Exam 1 Questions and
Already Passed Answers Graded
A+(2025).
North Carolina licensee Scottie is performing a no-fee CMA for his client Jameson. What does
this mean?
He doesn't have a brokerage agreement with Jameson.
He has a brokerage agreement Jameson.
He has at least a non-provisional real estate license.
He's had her non-provisional license for less than three months. - Answer He has a brokerage
agreement Jameson.
EXP. In North Carolina, a no-fee CMA may be performed for a consumer with whom there is a
brokerage relationship. It's considered "no fee" because the CMA is performed as part of the
overall brokerage services, so no separate fee is charged.
Abby was working in North Carolina as a nonresident commercial broker, and was affiliated with
broker-in-charge, Marcie. Abby's client gave her an earnest money check to be deposited in the
firm's trust fund. How long does Abby have to get Marcie the check?
Abby can wait until the sales contract is signed to get Marcie the check.
Abby doesn't need to give Marcie the check; she can deposit it into the trust account herself.
Abby has three banking days from the day she received the check to hand it over to Marcie.
Abby must get the check to Marcie immediately. - Answer Abby must get the check to Marcie
immediately.
What North Carolina agency is responsible for ensuring compliance with the federal Safe
Drinking Water Act?
Conservation Agency
Division of Surface Water
Public Water Suppliers Section
,North Carolina licensee Quinn reviewed the floor plan of the house he was getting ready to list,
determining that it had 3,800 square feet of living space. In his advertising, he bumped that
number up to 4,000 square feet to better justify the asking price. What illegal act did Quinn
commit?
Negligent misrepresentation
Negligent omission
Willful misrepresentation
Willful omission - Answer Willful misrepresentation
North Carolina buyer Jenn needed to obtain a mortgage loan to pay for the property she found.
Which of the following applies under the Buyer's Due Diligence paragraph of Standard Form 2-T
in this situation?
The Loan paragraph notes the buyer is entitled to apply for a mortgage loan. This paragraph is
NOT a contingency. If Jenn isn't approved and doesn't find out until after the due diligence
period ends, she'll lose her earnest money.
The Loan subparagraph isn't related to mortgage loans. Instead, it applies if the buyer needs to
take out a personal loan not to exceed $25,000 to fund the earnest money and/or down
payment amounts.
The Loan subparagraph is the Loan Contingency provision, which says that if Jenn does
everything possible in a timely manner to obtain a loan but her loan isn't approved, she can
terminate the contract without losing her earnest money.
The Loan subparagraph says the buyer is entitled to - Answer The Loan paragraph notes the
buyer is entitled to apply for a mortgage loan. This paragraph is NOT a contingency. If Jenn isn't
approved and doesn't find out until after the due diligence period ends, she'll lose her earnest
money.
EXP. The Loan paragraph in Standard Form 2-T notes that the buyer is entitled to apply for and
seek approval for a loan. The buyer's obligation to purchase the property is NOT contingent on
obtaining a loan. The buyer should work with the lender to try to determine whether it's likely
the buyer will be approved for the loan before the due diligence period expires. If the buyer
isn't approved before the expiration, the buyer may terminate the contract and have the
, At closing, when the documentation is signed
At first substantive contact, when you discuss his agency options
When Gus approaches you and wants you to list his house, and Dennis wants to look at it
When the two of you first meet - Answer At first substantive contact, when you discuss his
agency options
North Carolina licensee Jeannie is preparing an exclusive right-to-sell agreement. According to
state law, all real estate contracts must be in writing, include the signatures of all parties, be for
a definite period of time, and ________.
Include a legal description
Include specific nondiscriminatory language
Include the broker's fee
Include the parties' Social Security numbers - Answer Include specific nondiscriminatory
language
Which of the following statements about joint tenancy in North Carolina is true?
In North Carolina, joint tenancy is only available to married couples.
In North Carolina, joint tenants must not have unequal interests in the property.
Joint tenancy is never used in North Carolina.
The right of survivorship is automatic with joint tenancy in most states other than North
Carolina. - Answer The right of survivorship is automatic with joint tenancy in most states
other than North Carolina.
As part of due diligence, the buyer may obtain from the county health department an
improvement permit or written evaluation for a ground absorption sewage system in the home.
This is covered under the ______ provision of the Additional Provisions Addendum in North
Carolina.
Agreed-Upon Repairs and/or Improvements
Expiration of Offer
Rental/Income/Investment Property
Already Passed Answers Graded
A+(2025).
North Carolina licensee Scottie is performing a no-fee CMA for his client Jameson. What does
this mean?
He doesn't have a brokerage agreement with Jameson.
He has a brokerage agreement Jameson.
He has at least a non-provisional real estate license.
He's had her non-provisional license for less than three months. - Answer He has a brokerage
agreement Jameson.
EXP. In North Carolina, a no-fee CMA may be performed for a consumer with whom there is a
brokerage relationship. It's considered "no fee" because the CMA is performed as part of the
overall brokerage services, so no separate fee is charged.
Abby was working in North Carolina as a nonresident commercial broker, and was affiliated with
broker-in-charge, Marcie. Abby's client gave her an earnest money check to be deposited in the
firm's trust fund. How long does Abby have to get Marcie the check?
Abby can wait until the sales contract is signed to get Marcie the check.
Abby doesn't need to give Marcie the check; she can deposit it into the trust account herself.
Abby has three banking days from the day she received the check to hand it over to Marcie.
Abby must get the check to Marcie immediately. - Answer Abby must get the check to Marcie
immediately.
What North Carolina agency is responsible for ensuring compliance with the federal Safe
Drinking Water Act?
Conservation Agency
Division of Surface Water
Public Water Suppliers Section
,North Carolina licensee Quinn reviewed the floor plan of the house he was getting ready to list,
determining that it had 3,800 square feet of living space. In his advertising, he bumped that
number up to 4,000 square feet to better justify the asking price. What illegal act did Quinn
commit?
Negligent misrepresentation
Negligent omission
Willful misrepresentation
Willful omission - Answer Willful misrepresentation
North Carolina buyer Jenn needed to obtain a mortgage loan to pay for the property she found.
Which of the following applies under the Buyer's Due Diligence paragraph of Standard Form 2-T
in this situation?
The Loan paragraph notes the buyer is entitled to apply for a mortgage loan. This paragraph is
NOT a contingency. If Jenn isn't approved and doesn't find out until after the due diligence
period ends, she'll lose her earnest money.
The Loan subparagraph isn't related to mortgage loans. Instead, it applies if the buyer needs to
take out a personal loan not to exceed $25,000 to fund the earnest money and/or down
payment amounts.
The Loan subparagraph is the Loan Contingency provision, which says that if Jenn does
everything possible in a timely manner to obtain a loan but her loan isn't approved, she can
terminate the contract without losing her earnest money.
The Loan subparagraph says the buyer is entitled to - Answer The Loan paragraph notes the
buyer is entitled to apply for a mortgage loan. This paragraph is NOT a contingency. If Jenn isn't
approved and doesn't find out until after the due diligence period ends, she'll lose her earnest
money.
EXP. The Loan paragraph in Standard Form 2-T notes that the buyer is entitled to apply for and
seek approval for a loan. The buyer's obligation to purchase the property is NOT contingent on
obtaining a loan. The buyer should work with the lender to try to determine whether it's likely
the buyer will be approved for the loan before the due diligence period expires. If the buyer
isn't approved before the expiration, the buyer may terminate the contract and have the
, At closing, when the documentation is signed
At first substantive contact, when you discuss his agency options
When Gus approaches you and wants you to list his house, and Dennis wants to look at it
When the two of you first meet - Answer At first substantive contact, when you discuss his
agency options
North Carolina licensee Jeannie is preparing an exclusive right-to-sell agreement. According to
state law, all real estate contracts must be in writing, include the signatures of all parties, be for
a definite period of time, and ________.
Include a legal description
Include specific nondiscriminatory language
Include the broker's fee
Include the parties' Social Security numbers - Answer Include specific nondiscriminatory
language
Which of the following statements about joint tenancy in North Carolina is true?
In North Carolina, joint tenancy is only available to married couples.
In North Carolina, joint tenants must not have unequal interests in the property.
Joint tenancy is never used in North Carolina.
The right of survivorship is automatic with joint tenancy in most states other than North
Carolina. - Answer The right of survivorship is automatic with joint tenancy in most states
other than North Carolina.
As part of due diligence, the buyer may obtain from the county health department an
improvement permit or written evaluation for a ground absorption sewage system in the home.
This is covered under the ______ provision of the Additional Provisions Addendum in North
Carolina.
Agreed-Upon Repairs and/or Improvements
Expiration of Offer
Rental/Income/Investment Property
