North Carolina Real Estate Broker Exam Flashcards
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How many scored questions are on the NC real estate broker licensing exam?
140 scored questions.
What score is required to pass the NC broker exam?
A score of 75 is required on each section.
What is the exam fee for the NC real estate broker exam?
$63.
The NC exam is split into two sections. What are they?
A national portion and a state-specific (North Carolina law) portion, each scored separately.
Do you have to pass both exam sections, or is a combined average enough?
You must reach the passing score on each section independently — a high national score cannot offset a failing state score.
What is 'agency' in real estate, and who is the fiduciary owed to?
Agency is a relationship where the broker (agent) acts on behalf of a principal (client) and owes fiduciary duties — care, obedience, loyalty, disclosure, accounting, and confidentiality (OLD CAR / COLD AC).
What is the difference between a general lien and a specific lien?
A general lien attaches to all of a debtor's property (e.g., judgments, IRS liens). A specific lien attaches to one identified property (e.g., mortgage, property tax, mechanic's lien).
Name the four unities required to create a joint tenancy.
Time, Title, Interest, and Possession (TTIP) — plus, in NC, joint tenancy generally requires express language to include the right of survivorship.
What does the statute of frauds require for real estate contracts?
Contracts for the sale of real property (and leases over a set duration) must be in writing and signed to be enforceable.
What is the purpose of a trust (escrow) account for a real estate broker?
To hold client and third-party funds (earnest money, deposits) separately from the broker's own funds — commingling is prohibited.
Under federal Fair Housing, what are the protected classes?
Race, color, religion, national origin, sex, familial status, and disability (handicap).
What is the difference between a freehold and a non-freehold (leasehold) estate?
A freehold estate (e.g., fee simple, life estate) is ownership of indefinite duration. A non-freehold/leasehold estate is a tenant's right to possess for a defined term without ownership.
What are the three approaches to appraising property value?
The sales comparison (market) approach, the cost approach, and the income (capitalization) approach.
What does 'police power' allow a government to do to real property?
Regulate land use for public welfare — zoning, building codes, and environmental rules — without compensating owners (unlike eminent domain).
What is the difference between an 'exclusive right to sell' and an 'exclusive agency' listing?
Exclusive right to sell: the broker earns a commission no matter who finds the buyer. Exclusive agency: the seller may sell it themselves commission-free, but any other sale owes the broker.