FreeRealEstateExamPrep
Updated October 2026

North Carolina Real Estate Practice Exam

A free practice test for the North Carolina salesperson exam, for the weeks before your test date, with an explanation on every answer.

North Carolina full practice test

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North Carolina practice exam1/10
Transfer of title

A North Carolina settlement services company with no supervising lawyer wants to run an advertisement saying "We handle your home closing." Under Advisory Opinion 2002-1, the advertisement is:

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This practice exam is a study aid, not the real exam. Our questions are written by us to match the published content outline. They are not actual exam questions, no score here predicts a pass, and this site is not affiliated with, endorsed by, or sponsored by PSI, Pearson VUE, ARELLO, any state real estate commission, or any government agency. Your state commission and your candidate handbook are the only authoritative sources.

North Carolina real estate exam at a glance

North Carolina real estate salesperson exam at a glance
National questions80 scoredsource
State-law questions60 scoredsource
Passing score75%source
Time limit4 hours 30 minutessource
Exam fee$63.00 per attemptsource
Test providerPearson VUEsource
Retake wait10 dayssource
Pre-licence education75 hourssource

Figures verified against official sources on . Exam fees and rules change. Check the linked source before you book.

10 sample questions, with answers explained

Every question above with its correct answer and the reasoning behind it. Read the explanations for the ones you answered correctly too. A lucky guess and knowing the rule look identical on a score report. These are sample questions from our larger bank.

  1. 1. A North Carolina settlement services company with no supervising lawyer wants to run an advertisement saying "We handle your home closing." Under Advisory Opinion 2002-1, the advertisement is:

    • APermitted, because the company may receive and disburse closing funds
    • BPermitted, if a licensed broker reviews the ad first
    • CPermitted, if the ad also says the company is not a law firm
    • DNot permitted, because nonlawyers may not advertise that they will handle the closingcorrect

    Why: Even though an unsupervised nonlawyer may perform some ministerial closing tasks, such as receiving and disbursing funds, the opinion says that does not mean the nonlawyer is handling the closing, and nonlawyers may not advertise that they will handle it.

    Transfer of title

  2. 2. A North Carolina landlord holds a residential security deposit. When must the tenant receive the institution's name and address or bonding-insurer information?

    • AAt the landlord's next tax filing
    • BWithin 1 year after move-in
    • CWithin 30 days after the lease term beginscorrect
    • DOnly after the tenancy ends

    Why: Under G.S. 42-50, the landlord or agent must notify the tenant within 30 days after the lease term begins of the name and address of the institution holding the deposit or the bonding insurer. The deposit-location notice is due early in the tenancy, not only when a refund dispute arises.

    Property management

  3. 3. A North Carolina buyer's agent contacts a seller's agent for the first time. When must the buyer representation be disclosed?

    • AAt initial contact, with written confirmation by offer delivery except for auctionscorrect
    • BOnly after the seller accepts an offer
    • COnly at recording
    • DNever if another firm listed the home

    Why: Under 21 NCAC 58A .0104(f), a buyer's agent must disclose buyer representation at initial contact with the seller or seller's agent and, except in auctions, confirm it in writing no later than delivery of an offer. Initial disclosure and the later written-confirmation deadline are related but distinct duties.

    Agency

  4. 4. To renew on active status, how much continuing education must a North Carolina broker complete in each license period?

    • A8 hours, including the 4-hour General Update course and a 4-hour electivecorrect
    • B8 hours of any Commission-approved electives
    • C12 hours every two years, including 3 hours of law
    • D4 hours, consisting of the General Update course only

    Why: NCREC requires eight CE hours each license period: four from the Commission’s General Update course and four from an approved elective. North Carolina runs an annual cycle, so a biennial 12-hour figure describes other states.

    Practice of real estate

  5. 5. An out-of-state broker applying in North Carolina decides not to take the State section of the exam. What is the result?

    • AShe receives a full broker license after a 90-day waiting period
    • BShe receives a broker license on provisional status and is subject to North Carolina postlicensing educationcorrect
    • CShe may practice only in transactions involving her home-state clients
    • DHer application is denied, because the State section is mandatory

    Why: NCREC lets the applicant waive the State section, be issued a broker license on provisional status, and be subject to postlicensing education. Passing the State section instead gets a status equal to her home license. Calling the State section mandatory is a common error.

    Practice of real estate

  6. 6. A North Carolina tenancy ends and possession is returned, but the tenant's address is unknown. After applying the deposit as permitted, how long must the landlord hold the balance for collection?

    • AAt least 6 monthscorrect
    • BAt least 1 month
    • CAt least 3 months
    • DAt least 12 months

    Why: Under G.S. 42-52, if the tenant's address is unknown, the landlord applies the deposit after 30 days and holds the balance for the tenant for at least six months. An unknown address does not allow immediate forfeiture of the remaining deposit.

    Property management

  7. 7. Which of the following is NOT a requirement for a North Carolina provisional broker license?

    • ASubmitting a criminal record report with the application
    • BBeing at least 18 years old
    • CHolding a high school diploma or GEDcorrect
    • DCompleting the Broker Prelicensing Course

    Why: North Carolina sets the minimum age at 18, requires the prelicensing course and requires a criminal record report from the Commission’s designated provider. It does not require a high school diploma or GED; that requirement has been removed.

    Practice of real estate

  8. 8. A North Carolina broker’s license expired, and she now applies to reinstate it. Under G.S. Chapter 93A, the reinstatement fee equals:

    • AThe current renewal fee plus a flat late penalty
    • BThe renewal fee that was in effect when her license expired
    • CTwice the renewal fee in effect when the reinstatement application is filedcorrect
    • DTwice the original license application fee

    Why: The statute sets the fee to reinstate an expired, revoked or suspended license at two times the renewal fee in effect when the reinstatement application is filed. The trap is measuring it at the expiration date or from the application fee.

    Practice of real estate

  9. 9. Nineteen months after initial licensure, a North Carolina provisional broker has completed only two of the three postlicensing courses. A broker at another firm offers her a referral fee for sending over a client. Which is correct?

    • AShe may accept it, because a referral is not brokerage activity
    • BShe may keep working under an automatic six-month grace period
    • CHer license is placed on inactive status, and she may not collect brokerage fees, including referral feescorrect
    • DHer license is revoked, and she must pass the license examination again

    Why: Missing the 18-month postlicensing deadline puts the license on inactive status. An inactive licensee may not do brokerage or collect brokerage fees, and NCREC names referral fees specifically. The license is not revoked, and there is no automatic grace period.

    Practice of real estate

  10. 10. A North Carolina listing agreement says it "renews automatically for successive 90-day terms unless the seller cancels in writing." Under 21 NCAC 58A .0104(a), this clause is:

    • AValid, if the seller initials the renewal clause
    • BValid, because the seller can cancel at any time
    • CNot permitted: the agreement must run for a definite period and end without noticecorrect
    • DNot permitted, unless the broker’s license number appears beside the clause

    Why: Every written brokerage agreement must be for a definite period, include the broker’s license number, and terminate without prior notice at the end of that period. A listing that runs until the seller cancels defeats that rule. The narrow exception is a landlord agency agreement to procure tenants or collect rents, which may renew automatically if the landlord can end it with notice at the end of any period.

    Agency