North Carolina Real Estate Broker Practice Test

Answer choices

1. A. Remain silent because the seller's disclosure choice eliminates the broker's independent duty.
2. B. Disclose the known material fact to prospective buyers despite the seller's “No Representation” response.
3. C. Disclose only if a buyer first asks a question using the word “flood.”
4. D. Wait until after closing because property-condition facts are confidential until title transfers.

Wrong-answer review

• A. Remain silent because the seller's disclosure choice eliminates the broker's independent duty.: This choice conflicts with the controlling rule or principle tested by the scenario.
• C. Disclose only if a buyer first asks a question using the word “flood.”: This choice applies an incorrect legal or brokerage-practice standard to the facts presented.
• D. Wait until after closing because property-condition facts are confidential until title transfers.: This choice adds a requirement or consequence that the controlling authority does not impose.

Answer choices

1. A. The transferor.
2. B. The grantee only.
3. C. The listing broker personally.
4. D. The buyer's mortgage lender.

Answer choices

1. A. Familial status is not protected under North Carolina's State Fair Housing Act.
2. B. The refusal is lawful if the landlord owns more than four units.
3. C. The refusal is lawful whenever the instruction is given to a licensed broker.
4. D. Refusing the transaction because of familial status is an unlawful discriminatory housing practice.

Answer choices

1. A. $30,240.
2. B. $3,024.
3. C. $2,916.
4. D. $4,200.

Answer choices

1. A. Do nothing until the owner personally signs a new agreement for this specific repair.
2. B. Authorize an unlimited renovation because any leak creates unlimited agency authority.
3. C. Tell the tenant to pay for the repair and deduct it from any future rent without review.
4. D. Take reasonable emergency action within the granted authority, document it, and promptly notify the owner.

Answer choices

1. A. Four hours total, consisting only of any elective chosen by the broker.
2. B. Eight hours: the four-hour General Update course plus a four-hour Commission-approved elective.
3. C. Twelve hours total, all of which must be the Broker-in-Charge course.
4. D. No continuing education is required after the broker becomes non-provisional.

Answer choices

1. A. A bilateral purchase contract because both parties are already required to close, based on the transaction facts and the parties' existing agreement.
2. B. A lease because the payment automatically transfers possession for ten days.
3. C. An option contract because the seller is bound to keep the offer open while the buyer may choose whether to exercise it.
4. D. A deed because consideration has already changed hands.

Answer choices

1. A. Yes; merely entering an open house always creates substantial contact.
2. B. Not necessarily; routine factual inquiries can occur before the conversation becomes substantial.
3. C. Yes; asking the list price automatically creates buyer agency.
4. D. No; substantial contact can occur only after a written offer is drafted.

Answer choices

1. A. It eliminates the borrower's duty to repay the mortgage debt.
2. B. It converts every fixed-rate mortgage into an adjustable-rate mortgage, based on the facts stated in this transaction.
3. C. It guarantees that all future borrowers qualify without underwriting.
4. D. The sale can replenish the lender's funds and transfer mortgage assets off its balance sheet, increasing liquidity.

Answer choices

1. A. A periodic tenancy because rent will be paid monthly during the lease.
2. B. An estate for years because the tenancy has definite beginning and ending dates.
3. C. A tenancy at will because either party can always terminate without cause.
4. D. A tenancy at sufferance because the tenant has permission to possess.