North Carolina Real Estate Broker Exam 10-Question Diagnostic Practice Test

Q: How many questions are on the North Carolina real estate exam, and what is the passing score?

The North Carolina real estate broker exam consists of 140 multiple-choice questions administered by Pearson VUE: 80 National Core questions and 60 North Carolina State-specific questions. You are given 3.5 hours (210 minutes) total—150 minutes for the National section and 60 minutes for the State section. To pass, you must score at least 71% on the National portion (57 out of 80) and 75% on the State portion (44 out of 60).

Q: Why is there no "salesperson" license in North Carolina?

North Carolina is a "Broker-Only" licensing state under N.C.G.S. § 93A. There is no salesperson license. Every licensee is a Broker. When you first pass the exam, you are issued a Provisional Broker (PB) license and must be directly supervised by a designated Broker-in-Charge (BIC). Once you complete 90 hours of postlicensing education, the provisional restriction is removed and you become a full Broker.

Q: How hard is the North Carolina real estate exam?

The North Carolina real estate exam is widely considered one of the most challenging in the country, with first-time pass rates historically hovering between 50% and 58%. The state section is especially rigorous because it tests unique North Carolina doctrines—including the Conner Act pure-race recording statute, the joint NC Bar/NC REALTORS® Standard Form 2-T, Due Diligence Fee mechanics, and NCREC Residential Square Footage Guidelines.

Q: How much does the North Carolina real estate exam cost?

The total examination and application cost is $164. This consists of a non-refundable $100 application fee paid directly to the North Carolina Real Estate Commission (NCREC), followed by a $64 examination fee paid to Pearson VUE for each testing attempt. Additional costs include your 75-hour pre-licensing course ($300–$500) and a criminal background check report.

Q: What is the difference between the Due Diligence Fee and Earnest Money on Form 2-T?

Under North Carolina Standard Form 2-T, the Due Diligence Fee (DDF) is paid directly to the seller upon contract formation and is non-refundable (it compensates the seller for taking the home off the market while the buyer inspects). The Earnest Money Deposit (EMD) is held in a brokerage trust account or by an escrow closing attorney. If the buyer terminates in writing before 5:00 PM on the Due Diligence expiration date, the seller keeps the DDF, but the buyer receives a 100% refund of their Earnest Money.

Q: What is the Conner Act and what does "Pure Race" mean?

The Conner Act (N.C.G.S. § 47-18) is North Carolina's recording statute. North Carolina is a "Pure Race" state, meaning legal priority is determined purely by who records their deed or mortgage first at the county Register of Deeds ("first to record wins"). Even if a subsequent purchaser had actual knowledge of a prior unrecorded deed, the party who records first holds superior legal title.

Q: What is the 90-hour Postlicensing requirement in North Carolina?

Within 18 months of initial licensure, all North Carolina Provisional Brokers must complete 90 hours of classroom postlicensing education divided into three 30-hour courses: Post 301 (Broker Relationships & Responsibilities), Post 302 (Contracts & Closing), and Post 303 (NC Law, Rules & Legal Concepts). Completing these courses removes the provisional status. If not completed within 18 months, the license is placed on inactive status.

Q: What is the Working with Real Estate Agents (WWREA) disclosure?

NCREC Rule 58A.0104 requires brokers to review the Working with Real Estate Agents (WWREA) disclosure at "first substantial contact" with a prospective buyer or seller. Substantial contact occurs whenever a consumer begins sharing confidential motivations, personal timelines, or financial limits. The brochure explains agency relationships (seller agency, buyer agency, dual agency) and ensures consumers do not accidentally disclose bargaining secrets to a broker who represents the opposing party.

Q: Why can't buyers get keys at the closing table in North Carolina?

In North Carolina, signing documents at the attorney's office is legally defined as "Settlement," not "Closing." Under Standard Form 2-T and the NC Good Funds Settlement Act, "Closing" only occurs when the deed is formally recorded at the county Register of Deeds and funds are verified. Brokers cannot deliver keys, buyer cannot take possession, and commissions cannot be disbursed until deed recordation is confirmed.

Q: How is the North Carolina Real Estate Excise Tax calculated?

The North Carolina Real Estate Excise Tax (conveyance tax) is $1.00 per $500 (or fractional part thereof) of the sales price. By statute, you must round the purchase price UP to the next $500 increment before dividing by 500. For example, a home selling for $350,250 is rounded up to $350,500 / 500 = 701 units × $1.00 = $701.00. Customarily, this tax is paid by the seller upon recording the deed.

Question 1

Under the North Carolina Bar Association & NC REALTORS® Standard Form 2-T Offer to Purchase and Contract, Buyer Taylor delivers a $3,000 Due Diligence Fee (DDF) directly to Seller Morgan and a $5,000 Initial Earnest Money Deposit (EMD) to the escrow agent. On day 14 of a 21-day Due Diligence Period, Taylor exercises the unrestricted right to terminate. How are the funds disbursed under Form 2-T?

Accepted Answer

B. Morgan retains the $3,000 DDF as non-refundable compensation, and Taylor receives a 100% full refund of the $5,000 EMD.

Answer

A. Taylor receives both the $3,000 DDF and $5,000 EMD refunded in full.

Answer

C. Morgan retains both the DDF and EMD as liquidated damages for contract cancellation.

Answer

D. The funds must be held in escrow until an arbitrator decides buyer good faith.

Question 2

On June 1st, Owner Olivia conveys Blackacre to Buyer Baker by general warranty deed for $250,000. Baker moves onto the property but fails to record the deed at the county Register of Deeds. On July 15th, dishonest Olivia executes a second deed conveying Blackacre to Buyer Charlie for $260,000. Charlie immediately records his deed on July 16th. Under North Carolina's Conner Act (N.C.G.S. § 47-18), who holds superior legal title?

Accepted Answer

B. Charlie holds superior title because North Carolina is a pure race state where the first grantee to record at the Register of Deeds prevails.

Answer

A. Baker holds superior title because Baker took physical possession of Blackacre first.

Answer

C. Both deeds are void and the property escheats to the State of North Carolina.

Answer

D. Baker and Charlie become equal tenants in common with undivided interests.

Question 3

Provisional Broker Jordan is hosting a Sunday open house in Raleigh. A prospective buyer walks in, browses the kitchen, and whispers: "We are getting divorced and must find a home in this school district under $500k within 3 weeks." Under NCREC Rule 58A.0104, when must Jordan review and provide the Working with Real Estate Agents (WWREA) disclosure?

Accepted Answer

B. Immediately at first substantial contact, prior to eliciting or receiving confidential information regarding personal motivations or financial limits.

Answer

A. Only after the buyer requests Jordan to draft an official written purchase offer.

Answer

C. At closing alongside the closing disclosure statement.

Answer

D. Within 5 business days by registered mail.

Question 4

Brokerage Carolina Real Estate represents Seller Sarah under an exclusive listing agreement. Broker-in-Charge (BIC) Brenda represents Sarah. Provisional Broker (PB) Paul, who is directly supervised by BIC Brenda in the same office, represents Buyer Bob who wants to submit an offer on Sarah's property. Under NCREC Rule 58A.0104(j), can Brenda and Paul act as Designated Agents for Sarah and Bob?

Accepted Answer

B. No. A Broker-in-Charge (BIC) and a Provisional Broker (PB) under their direct supervision can NEVER be designated dual agent opponents in the same transaction.

Answer

A. Yes, because designated agency allows any two licensed brokers in the firm to act as advocates.

Answer

C. Yes, provided Sarah and Bob pay an additional 1% dual representation commission.

Answer

D. Yes, if the North Carolina Real Estate Commission grants a written variance.

Question 5

In a Charlotte residential closing, buyer and seller sign all loan documents, settlement statements, and deeds at the closing attorney's office on Friday at 4:30 PM. The county Register of Deeds is closed for the weekend. The buyer demands the front door keys immediately so movers can unload furniture. Under North Carolina law and Standard Form 2-T, how must the closing attorney and brokers proceed?

Accepted Answer

B. Keys and possession cannot be delivered and funds cannot be disbursed until "Closing" occurs, which requires formal recordation of the deed at the county Register of Deeds on Monday.

Answer

A. Keys and possession may be delivered immediately because settlement signatures are complete.

Answer

C. The buyer may enter the property only if they execute an oral hold harmless release.

Answer

D. The closing attorney may record the deed electronically over the weekend with the local sheriff.

Question 6

A residential home in Wake County sells for an agreed purchase price of $428,250. Under N.C.G.S. § 105-228.30, what is the exact North Carolina Real Estate Excise Tax (conveyance tax) owed to the county Register of Deeds, and who customarily pays it?

Accepted Answer

B. $857.00 paid by the seller

Answer

A. $428.25 paid by the buyer

Answer

C. $1,284.75 paid by the buyer

Answer

D. $856.50 paid by the lender

Question 7

Licensee Marcus successfully passes his North Carolina real estate exam and is issued an active Provisional Broker (PB) license on February 10, 2026. Under N.C.G.S. § 93A-4(a1) and NCREC rules, what mandatory education must Marcus complete to remove the "Provisional" status and avoid having his license placed on inactive status?

Accepted Answer

B. 90 hours of Postlicensing education (Post 301, 302, and 303) within 18 months from the date of initial licensure.

Answer

A. 12 hours of annual continuing education prior to June 10th.

Answer

C. A 24-hour Broker-in-Charge leadership academy course.

Answer

D. Pass a second comprehensive state exam administered by Pearson VUE.

Question 8

On Tuesday, Listing Broker Claire receives a buyer's check for earnest money alongside an accepted, signed purchase offer. Under NCREC Rule 21 NCAC 58A.0107, by what exact deadline must Claire deposit the earnest money check into the brokerage trust account?

Accepted Answer

B. No later than three (3) banking days following contract acceptance.

Answer

A. Immediately within 24 hours of receiving the physical check.

Answer

C. Within 30 calendar days of closing.

Answer

D. Only after the buyer completes their formal loan application.

Question 9

A seller of an existing single-family residential home in Greensboro refuses to complete the North Carolina Residential Property and Owners' Association Disclosure Statement (RPOADS), selecting "No Representation" for every item. The buyer executes the contract on Friday. Under the NC Residential Property Disclosure Act (N.C.G.S. § 47E-5), does the buyer have a right of rescission?

Accepted Answer

A. No. Sellers are legally permitted to answer "No Representation," so no rescission right exists if the disclosure form was delivered before contract signing.

Answer

B. Yes. Selecting "No Representation" is illegal fraud in North Carolina that automatically cancels the contract.

Answer

C. Yes, but only if the home inspection reveals structural foundation cracks exceeding $10,000.

Answer

D. No, because RPOADS only applies to newly constructed tract homes.

Question 10

Under the North Carolina Timeshare Act (N.C.G.S. § 93A Article 4), how is a "timeshare" legally defined, what is the buyer's statutory right of cancellation, and what maximum civil penalty may NCREC impose on a developer per violation?

Accepted Answer

A. Exclusive right to occupy a unit for at least 5 separate periods over at least 5 years (5x5 rule); 5-day cancellation right; $500 penalty per violation.

Answer

B. Occupancy for 3 weeks over 3 years; 3-day cancellation right; $1,000 penalty per violation.

Answer

C. Ownership of shares in a cooperative hotel; 14-day cancellation right; $5,000 penalty.

Answer

D. Timeshares are strictly prohibited in North Carolina coastal counties under CAMA.

North Carolina Real Estate Practice Exam & 2026 NCREC Broker Guide

How the North Carolina Broker Exam Works

80 National Questions

60 NC State Questions

Split-Score Preservation

Free 10-Question North Carolina Real Estate Diagnostic Test

The 8 Official North Carolina State Law Testing Domains

Licensure & Commission Rules

Agency Relationships & Disclosures

Broker Supervision & Compensation

Brokerage Practice & Escrow Management

Taxes, Insurance & Assessment

Contracts, Form 2-T & Closing Practice

Landlord-Tenant Law & Vacation Rentals

Other NC Real Estate Laws & Environmental

3 Critical Legal Rules Every North Carolina Broker Candidate Must Know

How to Get Your North Carolina Broker License in 2026

75-Hour Prelicense Course

Apply to NCREC

Pass Pearson VUE Exam

Affiliate with a BIC

90-Hour Postlicensing

North Carolina Real Estate Exam FAQs

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