Free North Carolina Real Estate Practice Exam 2026

North Carolina real estate exam sample questions and answers

6 of the 140 practice questions, one from each topic, with the answer explained.

1. 1. A builder offers a buyer's agent a $2,000 bonus if her buyer purchases one of its homes. The agent may accept it only if she:

   • A.Reports it to the Commission
   • B.Discloses it to her buyer in writing
   • C.Receives it only after closing
   • D.Rebates half of it to the buyer

   Answer: B. Rule 58A .0109(c)(2) and (d) bar a broker from taking consideration of more than nominal value from anyone other than the principal without full and timely disclosure to the principal, including its value and who pays it; an oral disclosure must be confirmed in writing before the principal makes or accepts an offer.

2. 2. A listing broker learns that a previous occupant of the listed home died there of natural causes. Under G.S. 39-50, this fact:

   • A.Must be disclosed in writing
   • B.Must be on the disclosure form
   • C.Must be disclosed to every buyer
   • D.Is not deemed a material fact

   Answer: D. G.S. 39-50 provides that a prior occupant's death or serious illness while occupying the property is not a material fact, though no seller may knowingly make a false statement about it. A broker asked directly still may not misrepresent it.

3. 3. A North Carolina home sells for $312,000. Who pays the state excise tax on the deed, and how much is it?

   • A.Seller (grantor), $624
   • B.Buyer (grantee), $624
   • C.Seller (grantor), $312
   • D.Buyer (grantee), $1,248

   Answer: A. G.S. 105-228.30(a) levies $1 per $500 of consideration, paid by the transferor before the deed is recorded: $312,000 / 500 = 624 units x $1 = $624. The $312 answer wrongly uses $1 per $1,000.

4. 4. An investor buys a residential rental for $400,000, of which $70,000 is land value. Using straight-line depreciation over 27.5 years, what is the annual depreciation?

   • A.$8,461.54
   • B.$14,545.45
   • C.$12,000
   • D.$2,545.45

   Answer: C. Land is not depreciated, so the building basis is $400,000 - $70,000 = $330,000, and $330,000 / 27.5 = $12,000 per year. Depreciating the full $400,000 gives $14,545.45, which wrongly includes the land.

5. 5. Two brokers agree that one will take listings only east of Main Street and the other only west. This antitrust violation is:

   • A.A tie-in agreement
   • B.Price fixing
   • C.Market allocation
   • D.A group boycott

   Answer: C. Dividing territories or customers among competitors is market allocation, which the Sherman Act prohibits. Price fixing is agreeing on commission rates, which must instead be set by negotiation between each broker and client.

6. 6. Buyer 1 receives a deed but never records it. Later the seller deeds the same lot to Buyer 2, who pays value, has no knowledge, and records. Who generally prevails?

   • A.Buyer 2, under the recording acts
   • B.Both buyers, as tenants in common
   • C.Buyer 1, because the first deed controls
   • D.The seller, since both deeds are void

   Answer: A. Under North Carolina's Conner Act (G.S. 47-18) an unrecorded deed is not valid against a later purchaser for value, and priority follows the order of recording, so Buyer 2 prevails. Buyer 1's deed still binds the seller who signed it.