NC REAL ESTATE EXAM QUESTIONS WITH
100% ACCURATE ANSWERS
NC real estate broker license applicant Penelope completed her required pre-licensing education on
April 1, 2020. Based on this, Penelope must apply for her license before ______ or her pre-licensing
education credit will expire.
A. April 1, 2021
B. April 1, 2022
C. April 1, 2023
D. April 1, 2024 - Accurate answers Correct answer: C
In North Carolina, an applicant must satisfactorily complete the state's 75-hour broker pre-licensing
course at a commission-approved school within the three years preceding the date the application is
submitted to the commission. Because Penelope completed her prelicensing education on April 1, 2020,
she must apply for her real estate broker license before April 1, 2023 or her education credit will expire.
Liv, Elliot, Don, and John all have active North Carolina brokers' licenses, and they've all completed the
broker-in-charge course within the past year. Based on the following information, which of these
brokers qualifies as a BIC?
A. Liv, a North Carolina lawyer whose work was comprised primarily of handling real estate closings and
related matters for the two years immediately preceding the BIC application
B. Elliot, who's had 20 months of full-time real estate brokerage experience in the past six years
C. Don, who's had three years of part-time real estate brokerage experience in the past five years
D. John, who's had four years of part-time real estate brokerage experience in the past five years -
Accurate answers Correct answer: D
To become a BIC, the experience requirements state that a broker must have been either an attorney
working with North Carolina real estate closings for the last three years, or a broker with either two
years of full-time brokerage experience or four years of part-time brokerage experience in the previous
five years.
North Carolina broker-in-charge Angela has a properly designated trust fund in North Carolina. She
keeps funds from five separate clients in it. Under the Federal Deposit Insurance Corporation (FDIC), this
account is insured for how much?
A. Up to $25,000 total
B. Up to $250,000 total
C. Up to $25,000 per each of the five individuals
D. Up to $250,000 per each of the five individuals - Accurate answers Correct answer: D
The FDIC insures deposits for as much as $250,000 per person for bank accounts. However, when an
account is properly designated as a trust/escrow account, the FDIC actually insures up to $250,000 per
each individual for whom funds are being held. This means that a broker's trust account may contain
,more than $250,000 total with all funds fully insured by the FDIC, as long as no single individual's
interest in the account is more than $250,000, and provided those individuals do not maintain other
accounts in the individual's name at the same bank.
North Carolina broker-in-charge Edison was getting ready to disburse trust funds for a transaction that
was set to close. During what time frame may Edison disburse the funds?
A. At least 10 days after the settlement date
B. At least 10 days before the settlement date
C. No more than 10 days after the settlement date
D. No more than 10 days before the settlement date - Accurate answers Correct answer: D
North Carolina statute requires that the broker-in-charge who's responsible for a trust account disburse
the appropriate trust funds and no more than 10 days before the settlement date.
North Carolina broker Amanda received earnest money from her client. When must this money be
deposited into a trust account?
A. No later than five days after she received the money
B. No later than one day after she received the money
C. No later than three days after she received the money
D. No later than two days after she received the money - Accurate answers Correct answer: C
In North Carolina, trust money must be deposited in a trust or escrow account no later than three
banking days after the broker received it.
North Carolina property manager Virgil has an arrangement with Lindsay, the owner of the property he
manages, that allows him to enter into the rental agreements on her behalf. He has Lindsay's written
consent to use pre-printed forms that she's already approved, and, rather than sending her every
agreement, he sends her summaries of the relevant information. According to statute, under such an
arrangement, what's the deadline by which Virgil must send Lindsay such a summary of information?
A. Any time before the termination of tenancy
B. Within 45 days of the agreement's execution
C. Within the first month of tenancy
D. Within three days of the agreement's execution - Accurate answers Correct answer: B
North Carolina property managers who have their property owner's written consent to forego sending
every agreement to them within three days of receipt must instead send the owner a summary of the
relevant information (identifying the property, the name, phone number, and home address of each
tenant, and the rental rates) within 45 days of the execution.
Along with providing proof of meeting requirements, like active licensure, when applying for broker-in-
charge eligibility in North Carolina, which of the following courses must an applicant complete?
A. The 12-hour broker-in-charge course
B. The 24-hour brokerage management course
C. The 40-hour brokerage management course
, D. The 60-hour broker-in-charge course - Accurate answers Correct answer: A
Gary just received a provisional broker license in North Carolina. What must he do to remove the
provisional status?
A. Complete 30 hours of post-licensing education within the next two years.
B. Complete 60 hours of post-licensing education within the next year.
C. Complete 75 hours of post-licensing education and pass a post-licensing exam.
D. Complete 90 hours of post-licensing education within the next 18 months. - Accurate answers
Correct answer: D
Within 18 months of receiving his license, Gary must complete 90 hours of post-licensing education from
an approved provider. Once the post-licensing education is completed successfully, the education
provider reports the completion to the commission. The provisional status is then automatically
removed.
The North Carolina Time Share Act stipulates that a time share is the right to occupy a specific unit (or
one of several units) during five or more separate time periods over a period of at least ______ years.
A. Five
B. Four
C. Six
D. Three - Accurate answers Correct answer: A
No matter how interest is held, North Carolina's Time Share Act stipulates that a time share is the right
to occupy a specific unit (or one of several units) during five or more separate time periods over a period
of at least five years, including renewal options.
Farmer John installed several pieces of farming equipment in and around the barn on the North Carolina
property he's leased for the past 12 years. Which of the following statements is true of this situation?
A. This equipment is John's, so when the lease ends, he must remove the equipment at his own expense
to take it with him.
B. The equipment is John's personal property. At the end of his lease, he and the property owner can
negotiate whether the equipment stays with the property or not. If it remains, the property owner must
pay fair market value to John for it.
C. Any pieces of farming equipment John installed are considered agricultural fixtures. At the end of
John's lease, he and the property owner can negotiate whether the equipment stays with the property
or not. If it remains, the property owner must pay fair market value to John for it.
D. Farming equipment is considered an agricultural fixture. Once Jo - Accurate answers Correct
answer: D
When someone installs improvements on a leased property, those items become fixtures—aka real
property. Therefore, answer options A and B are both incorrect, because they refer to the installed
equipment as personal property. This question takes that a step further, because it specifies both North
100% ACCURATE ANSWERS
NC real estate broker license applicant Penelope completed her required pre-licensing education on
April 1, 2020. Based on this, Penelope must apply for her license before ______ or her pre-licensing
education credit will expire.
A. April 1, 2021
B. April 1, 2022
C. April 1, 2023
D. April 1, 2024 - Accurate answers Correct answer: C
In North Carolina, an applicant must satisfactorily complete the state's 75-hour broker pre-licensing
course at a commission-approved school within the three years preceding the date the application is
submitted to the commission. Because Penelope completed her prelicensing education on April 1, 2020,
she must apply for her real estate broker license before April 1, 2023 or her education credit will expire.
Liv, Elliot, Don, and John all have active North Carolina brokers' licenses, and they've all completed the
broker-in-charge course within the past year. Based on the following information, which of these
brokers qualifies as a BIC?
A. Liv, a North Carolina lawyer whose work was comprised primarily of handling real estate closings and
related matters for the two years immediately preceding the BIC application
B. Elliot, who's had 20 months of full-time real estate brokerage experience in the past six years
C. Don, who's had three years of part-time real estate brokerage experience in the past five years
D. John, who's had four years of part-time real estate brokerage experience in the past five years -
Accurate answers Correct answer: D
To become a BIC, the experience requirements state that a broker must have been either an attorney
working with North Carolina real estate closings for the last three years, or a broker with either two
years of full-time brokerage experience or four years of part-time brokerage experience in the previous
five years.
North Carolina broker-in-charge Angela has a properly designated trust fund in North Carolina. She
keeps funds from five separate clients in it. Under the Federal Deposit Insurance Corporation (FDIC), this
account is insured for how much?
A. Up to $25,000 total
B. Up to $250,000 total
C. Up to $25,000 per each of the five individuals
D. Up to $250,000 per each of the five individuals - Accurate answers Correct answer: D
The FDIC insures deposits for as much as $250,000 per person for bank accounts. However, when an
account is properly designated as a trust/escrow account, the FDIC actually insures up to $250,000 per
each individual for whom funds are being held. This means that a broker's trust account may contain
,more than $250,000 total with all funds fully insured by the FDIC, as long as no single individual's
interest in the account is more than $250,000, and provided those individuals do not maintain other
accounts in the individual's name at the same bank.
North Carolina broker-in-charge Edison was getting ready to disburse trust funds for a transaction that
was set to close. During what time frame may Edison disburse the funds?
A. At least 10 days after the settlement date
B. At least 10 days before the settlement date
C. No more than 10 days after the settlement date
D. No more than 10 days before the settlement date - Accurate answers Correct answer: D
North Carolina statute requires that the broker-in-charge who's responsible for a trust account disburse
the appropriate trust funds and no more than 10 days before the settlement date.
North Carolina broker Amanda received earnest money from her client. When must this money be
deposited into a trust account?
A. No later than five days after she received the money
B. No later than one day after she received the money
C. No later than three days after she received the money
D. No later than two days after she received the money - Accurate answers Correct answer: C
In North Carolina, trust money must be deposited in a trust or escrow account no later than three
banking days after the broker received it.
North Carolina property manager Virgil has an arrangement with Lindsay, the owner of the property he
manages, that allows him to enter into the rental agreements on her behalf. He has Lindsay's written
consent to use pre-printed forms that she's already approved, and, rather than sending her every
agreement, he sends her summaries of the relevant information. According to statute, under such an
arrangement, what's the deadline by which Virgil must send Lindsay such a summary of information?
A. Any time before the termination of tenancy
B. Within 45 days of the agreement's execution
C. Within the first month of tenancy
D. Within three days of the agreement's execution - Accurate answers Correct answer: B
North Carolina property managers who have their property owner's written consent to forego sending
every agreement to them within three days of receipt must instead send the owner a summary of the
relevant information (identifying the property, the name, phone number, and home address of each
tenant, and the rental rates) within 45 days of the execution.
Along with providing proof of meeting requirements, like active licensure, when applying for broker-in-
charge eligibility in North Carolina, which of the following courses must an applicant complete?
A. The 12-hour broker-in-charge course
B. The 24-hour brokerage management course
C. The 40-hour brokerage management course
, D. The 60-hour broker-in-charge course - Accurate answers Correct answer: A
Gary just received a provisional broker license in North Carolina. What must he do to remove the
provisional status?
A. Complete 30 hours of post-licensing education within the next two years.
B. Complete 60 hours of post-licensing education within the next year.
C. Complete 75 hours of post-licensing education and pass a post-licensing exam.
D. Complete 90 hours of post-licensing education within the next 18 months. - Accurate answers
Correct answer: D
Within 18 months of receiving his license, Gary must complete 90 hours of post-licensing education from
an approved provider. Once the post-licensing education is completed successfully, the education
provider reports the completion to the commission. The provisional status is then automatically
removed.
The North Carolina Time Share Act stipulates that a time share is the right to occupy a specific unit (or
one of several units) during five or more separate time periods over a period of at least ______ years.
A. Five
B. Four
C. Six
D. Three - Accurate answers Correct answer: A
No matter how interest is held, North Carolina's Time Share Act stipulates that a time share is the right
to occupy a specific unit (or one of several units) during five or more separate time periods over a period
of at least five years, including renewal options.
Farmer John installed several pieces of farming equipment in and around the barn on the North Carolina
property he's leased for the past 12 years. Which of the following statements is true of this situation?
A. This equipment is John's, so when the lease ends, he must remove the equipment at his own expense
to take it with him.
B. The equipment is John's personal property. At the end of his lease, he and the property owner can
negotiate whether the equipment stays with the property or not. If it remains, the property owner must
pay fair market value to John for it.
C. Any pieces of farming equipment John installed are considered agricultural fixtures. At the end of
John's lease, he and the property owner can negotiate whether the equipment stays with the property
or not. If it remains, the property owner must pay fair market value to John for it.
D. Farming equipment is considered an agricultural fixture. Once Jo - Accurate answers Correct
answer: D
When someone installs improvements on a leased property, those items become fixtures—aka real
property. Therefore, answer options A and B are both incorrect, because they refer to the installed
equipment as personal property. This question takes that a step further, because it specifies both North
