Free North Carolina Real Estate Practice Exam

Q1.In North Carolina, which agency duty allows a broker to disclose confidential information about their client?

• A.Loyalty
• B.Obedience
• C.Disclosure
• D.None - confidentiality must always be maintained

Q2.Under the Fair Housing Act, the definition of "disability" (handicap) includes all of the following EXCEPT:

• A.A physical impairment that substantially limits a major life activity
• B.A mental impairment that substantially limits a major life activity
• C.A record of having such an impairment
• D.Current illegal use of controlled substances

Q3.A North Carolina condominium association refuses to allow a blind resident to install a wheelchair ramp for a visiting family member, citing aesthetic concerns. The association's action is:

• A.Legal because it's a reasonable architectural standard
• B.Legal because the modification isn't for the resident personally
• C.Illegal failure to provide reasonable accommodation
• D.Legal because condominium associations have broad discretionary authority

Q4.A North Carolina real estate firm wants to open a branch office. What must occur before the branch office can begin operations?

• A.The firm must hire at least 5 brokers for the branch
• B.A designated broker-in-charge must be assigned and approved by the Commission
• C.The branch office must be within 50 miles of the main office
• D.The firm must post a $10,000 bond for the branch office

Q5.A North Carolina real estate firm has offices in three different cities, each with its own broker-in-charge. The firm's principal broker-in-charge is considering consolidating trust account management at the main office. Which factor is most critical for Commission compliance?

• A.All locations must maintain separate trust accounts
• B.The distance between office locations
• C.The principal broker-in-charge's ability to supervise trust account activities at all locations
• D.The number of transactions handled at each location

Q6.What information must be included on every trust account check according to North Carolina Real Estate Commission rules?

• A.Only the payee and amount
• B.The payee, amount, and broker's signature
• C.The payee, amount, broker's signature, and transaction identification
• D.The payee, amount, broker's signature, transaction identification, and purpose of disbursement

Q7.Radon gas exposure in homes is primarily a health concern because it:

• A.Causes immediate respiratory distress
• B.Is the second leading cause of lung cancer
• C.Leads to heavy metal poisoning
• D.Triggers severe allergic reactions

Q8.Which of the following best describes a Qualified Mortgage (QM) under the CFPB's Ability-to-Repay Rule?

• A.Any loan with a down payment of at least 20%
• B.A loan that meets specific underwriting standards including debt-to-income ratios and prohibits risky loan features
• C.A loan that can only be made by banks
• D.A loan with a fixed interest rate

Q9.A North Carolina property manager discovers that a rental property has lead-based paint hazards. The property was built in 1968 and houses a family with young children. What is the property manager's primary legal obligation under federal law?

• A.Immediately evict all tenants for their safety
• B.Complete lead abatement within 30 days
• C.Provide proper disclosure and educational materials
• D.Reduce rent by 50% until hazards are remediated

Q10.The Equal Credit Opportunity Act (ECOA) prohibits discrimination in lending based on all of the following EXCEPT:

• A.Race or national origin
• B.Marital status
• C.Employment history
• D.Receipt of public assistance

Q11.A North Carolina property manager receives a court order for garnishment of a tenant's wages. The property manager has no legal relationship with the tenant's employer. What should the property manager do?

• A.Forward the garnishment order to the tenant's employer
• B.Hold the garnishment order until the tenant's next rent payment
• C.Return the garnishment order to the court as improperly served
• D.Ignore the garnishment order as it doesn't apply to rental payments

Q12.The North Carolina Real Estate Commission (NCREC) consists of how many members?

• A.5 members
• B.7 members
• C.9 members
• D.11 members

Q13.A commercial tenant installs specialized restaurant equipment that is bolted to the floor and connected to the building's electrical and plumbing systems. The lease expires and the tenant wants to remove the equipment. What legal principle applies?

• A.The equipment automatically becomes the landlord's property as a fixture
• B.The equipment remains the tenant's property as a trade fixture
• C.The equipment must be abandoned as it cannot be safely removed
• D.The equipment's ownership must be determined by a court

Q14.A property owner grants a utility company the right to install and maintain power lines across their property. Twenty years later, the property is sold. What happens to the utility company's rights?

• A.The rights terminate automatically upon sale
• B.The rights continue if the new owner agrees
• C.The rights continue regardless of the new owner's consent
• D.The rights must be renegotiated with the new owner

Q15.Under North Carolina law, when must earnest money be deposited into a trust account?

• A.Within 24 hours of receipt
• B.Within 3 banking days of receipt
• C.Within 5 banking days of receipt
• D.Within 10 banking days of receipt