SUPERIOR 303 NC LAW AND RULES TEST
PAPER 2026 EXAM QUESTIONS WITH
CORRECT ANSWERS GRADED A+
● In the course of selling a home to a buyer, a broker told the buyer that
the home's foundation was "solid as a rock", when he knew for a fact
that it was slowly sinking into the landfill on which it was built. In this
situation, the broker's conduct would be BEST defined as a
a. negligent omission
b. willful omission
c. negligent misrepresentation
d. willful misrepresentation. Answer: D - willful misrepresentation
"NC Laws-Rules Comments(p.4)": Misrepresentation or Omission [G.S.
93A‑6(a)(1)] Misrepresentation or omission of a material fact by a
licensee is prohibited, and this prohibition includes both "willful" and
"negligent" acts. A "willful" act is one that is done intentionally and
deliberately, while a "negligent" act is one that is done unintentionally. A
"misrepresentation" is communicating false information, while an
"omission" is failing to provide or disclose information where there is a
duty to provide or disclose such information.
● A licensee's pocket renewal card must be
,a. carried by the licensee when conducting real estate brokerage
activities
b. retained by the licensee at the licensee's residence
c. swiped through electronic lock boxes to gain entry to listed properties
d. prominently displayed in the office of the employing broker. Answer:
A - carried by the licensee when conducting real estate brokerage
activities
(NCREC Rules - p. 1) 21 NCAC 58A .0101 PROOF OF LICENSURE
(a) The pocket card issued by the Commission annually to each broker
shall be retained by the broker as evidence of licensure. Each broker
shall produce a legible form of the card as proof of licensure whenever
requested while engaging in real estate brokerage.
● Prior to suspending or revoking the real estate license of a provisional
broker, the Real Estate Commission will
a. hold a hearing where the licensee can be present with legal counsel
b. allow the provisional broker to remove provisional status
c. provide an attorney if the broker cannot afford one
d. require the licensee to correct any post-licensing and continuing
education deficiencies. Answer: A - hold a hearing where the licensee
can be present with legal counsel
Chapter 93A - Real Estate Law(p. 12) The Commission has power to
take disciplinary action. Upon its own initiative, or on the complaint of
, any person, the Commission may investigate the actions of any person
or entity licensed under this Chapter, or any other person or entity who
shall assume to act in such capacity. If the Commission finds probable
cause that a licensee has violated any of the provisions of this Chapter,
the Commission may hold a hearing on the allegations of misconduct.
● A real estate agent who is licensed as a provisional broker may be an
associate of
a. more than one broker at a one time
b. only the firm that his supervising broker-in-charge represents
c. the buyer and seller in the same transaction as designated agent
d. any clients who employ the real estate agent directly. Answer: B -
only the firm that his supervising broker-in-charge represents
● In order to qualify as a broker-in-charge, a licensee must possess all of
the following EXCEPT
a. a real estate firm license
b. the minimum experience (or the equivalent) required by the
Commission
c. an active broker license
d. the requisite character in order to be of no threat to the public.
Answer: A - a real estate firm license
● A broker cannot legally collect commissions from both the seller and
the buyer without
PAPER 2026 EXAM QUESTIONS WITH
CORRECT ANSWERS GRADED A+
● In the course of selling a home to a buyer, a broker told the buyer that
the home's foundation was "solid as a rock", when he knew for a fact
that it was slowly sinking into the landfill on which it was built. In this
situation, the broker's conduct would be BEST defined as a
a. negligent omission
b. willful omission
c. negligent misrepresentation
d. willful misrepresentation. Answer: D - willful misrepresentation
"NC Laws-Rules Comments(p.4)": Misrepresentation or Omission [G.S.
93A‑6(a)(1)] Misrepresentation or omission of a material fact by a
licensee is prohibited, and this prohibition includes both "willful" and
"negligent" acts. A "willful" act is one that is done intentionally and
deliberately, while a "negligent" act is one that is done unintentionally. A
"misrepresentation" is communicating false information, while an
"omission" is failing to provide or disclose information where there is a
duty to provide or disclose such information.
● A licensee's pocket renewal card must be
,a. carried by the licensee when conducting real estate brokerage
activities
b. retained by the licensee at the licensee's residence
c. swiped through electronic lock boxes to gain entry to listed properties
d. prominently displayed in the office of the employing broker. Answer:
A - carried by the licensee when conducting real estate brokerage
activities
(NCREC Rules - p. 1) 21 NCAC 58A .0101 PROOF OF LICENSURE
(a) The pocket card issued by the Commission annually to each broker
shall be retained by the broker as evidence of licensure. Each broker
shall produce a legible form of the card as proof of licensure whenever
requested while engaging in real estate brokerage.
● Prior to suspending or revoking the real estate license of a provisional
broker, the Real Estate Commission will
a. hold a hearing where the licensee can be present with legal counsel
b. allow the provisional broker to remove provisional status
c. provide an attorney if the broker cannot afford one
d. require the licensee to correct any post-licensing and continuing
education deficiencies. Answer: A - hold a hearing where the licensee
can be present with legal counsel
Chapter 93A - Real Estate Law(p. 12) The Commission has power to
take disciplinary action. Upon its own initiative, or on the complaint of
, any person, the Commission may investigate the actions of any person
or entity licensed under this Chapter, or any other person or entity who
shall assume to act in such capacity. If the Commission finds probable
cause that a licensee has violated any of the provisions of this Chapter,
the Commission may hold a hearing on the allegations of misconduct.
● A real estate agent who is licensed as a provisional broker may be an
associate of
a. more than one broker at a one time
b. only the firm that his supervising broker-in-charge represents
c. the buyer and seller in the same transaction as designated agent
d. any clients who employ the real estate agent directly. Answer: B -
only the firm that his supervising broker-in-charge represents
● In order to qualify as a broker-in-charge, a licensee must possess all of
the following EXCEPT
a. a real estate firm license
b. the minimum experience (or the equivalent) required by the
Commission
c. an active broker license
d. the requisite character in order to be of no threat to the public.
Answer: A - a real estate firm license
● A broker cannot legally collect commissions from both the seller and
the buyer without
