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CHEAT SHEET · NORTH CAROLINA REAL ESTATE BROKER

North Carolina Real Estate Broker Cheat Sheet.
The night-before summary, built like the exam.

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Weighted to the current exam outline·15-minute scanVerified against the official content outline
Written by Every Exam Prep Editorial TeamSource and review policyPublished July 7, 2026Updated July 17, 2026
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01

Quick facts

the numbers to know before exam day
140
Questions
4h 30m
Time limit
75 (each section)
Passing score
$63
Exam fee
North Carolina Real Estate Commission
Governing body
02

Full write-up

the complete guide, in prose

NC Real Estate Broker Exam — Cheat Sheet

Fast-reference facts, formulas, and must-remember rules for the North Carolina broker licensing exam. Use this to drill the numbers and the concepts that show up most.

The Numbers You Must Know

  • 140 scored questions on the exam.
  • Passing score: 75 — required on each section (national + state law).
  • Exam fee: $63.

The exam is split into two sections; you must clear 75 on each independently — a strong national score cannot rescue a weak state-law score, and vice versa.

Real Estate Math — Core Formulas

  • Commission = Sale Price × Commission Rate
  • Percentage (T = B × R): Part = Total × Rate. Rearrange for whatever is missing (Rate = Part ÷ Total; Total = Part ÷ Rate).
  • Area: Rectangle = Length × Width; Triangle = ½ × Base × Height. Convert acres using 1 acre = 43,560 sq ft.
  • Loan-to-Value (LTV) = Loan Amount ÷ Value (or Price, whichever is lower).
  • Simple Interest = Principal × Rate × Time.
  • Transfer/Excise tax (NC): charged per $500 of value (or fraction thereof) — round the price UP to the next $500 before multiplying.
  • Proration: Annual amount ÷ 360 (or 365) = daily rate; multiply by days owed. Know who owns the day of closing per the problem's instructions.
  • Gross Rent Multiplier (GRM) = Price ÷ Gross Rent.

Property Rights & Estates

  • Bundle of rights: possession, control, exclusion, enjoyment, disposition.
  • Fee simple absolute = highest, most complete ownership.
  • Freehold (ownership) vs. leasehold (tenant's right to possess).
  • Encumbrances: liens, easements, encroachments, deed restrictions.
  • Easement appurtenant needs two parcels (dominant + servient); easement in gross needs only one (e.g., utility).

Contracts & Deeds

  • Valid contract elements: competent parties, offer & acceptance (mutual assent), consideration, legal purpose, and — for real estate — in writing (Statute of Frauds).
  • General warranty deed = broadest grantee protection; quitclaim = no warranties, only conveys whatever interest the grantor has.
  • A deed must be delivered and accepted to transfer title. Recording gives constructive notice but is not required for validity.

Agency & Fiduciary Duties (OLD CAR)

  • Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable care.
  • NC requires the Working With Real Estate Agents Disclosure at first substantial contact.
  • Trust/escrow money must be kept separate — commingling and conversion are prohibited.

Federal Law Hot Spots

  • Fair Housing Act protected classes: race, color, religion, national origin, sex, familial status, disability.
  • RESPA: governs closing disclosures, prohibits kickbacks/referral fees.
  • TILA / Reg Z: triggered terms in advertising require full disclosure of financing terms.
  • Lead-based paint (pre-1978): disclosure + pamphlet required.

Financing & Liens

  • NC is a title-theory state using deeds of trust (trustee holds title) with power-of-sale non-judicial foreclosure.
  • Lien priority is generally first-recorded, first in line — except property tax liens, which take priority.

Test-Day Strategy

  • Answer national and state questions with equal care — each section needs its own 75.
  • On math, write the formula first, plug in, then solve; watch for "per $500" and acre conversions.
  • Eliminate two wrong answers before choosing; "most complete" / "best" answers usually reflect fiduciary duty or full disclosure.

Frequently asked questions

What should I memorize from the NC Broker cheat sheet?

Prioritize the rules that generate the most questions: the OLD CAR fiduciary duties (Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care), the four essential contract elements (mutual assent, consideration, competent parties, and lawful object), and the seven federal Fair Housing protected classes (race, color, religion, national origin, sex, familial status, and disability). Also lock in the finance anchors: one discount point equals one percent of the loan amount, and PMI is typically required on conventional loans when the down payment is under twenty percent. These recur across many question stems, so knowing them cold pays off repeatedly.

What are the most common traps on the NC Broker exam?

Watch for questions that blur duties owed to clients versus customers: agents owe customers honesty, fair dealing, and disclosure of known material latent defects, but not fiduciary duties. Contract questions love the counteroffer trap — any material change to the terms rejects and extinguishes the original offer — and the fact that an offer can be revoked any time before acceptance is communicated. Deed questions often test that a quitclaim deed carries no warranties while a general warranty deed protects against defects arising at any time, and fair housing items test the difference between steering, blockbusting, and redlining.

Which agency rules trip people up the most?

Three rules cause the most missed points. Dual agency is permitted only with the informed written consent of both parties — consent must be informed and in writing, not implied. Confidentiality survives termination of the agency, so you still cannot reveal information that would harm your former principal's bargaining position after the relationship ends. And accounting means client funds go into a separate trust or escrow account, never commingled with the broker's own money.

How should I use the cheat sheet the night before the exam?

Use it for light review, not new learning — skim each section and quiz yourself out loud on the acronyms, lists, and definitions. Flag anything you cannot recall instantly, like the three approaches to value (sales comparison, cost, and income) or that the Statute of Frauds requires real estate sale contracts and leases over one year to be in writing, and give those items one focused pass. Then stop, sleep, and glance at your flagged items once more in the morning.

Is the cheat sheet enough to pass on its own?

No — it is a memory aid, not a substitute for full preparation. The exam tests application, like recognizing that specific performance is available because land is deemed unique or that recording a deed gives constructive notice and establishes priority, and applied judgment only comes from working through practice questions. Use the cheat sheet to lock in the facts, then prove you can apply them with full-length practice tests.

Sources

  1. 1.Real Estate Regulatory Agencies Directory — ARELLO
  2. 2.Real Estate Licensing Exams (Pearson VUE) — Pearson VUE

Official sources

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