Real Estate Licensing NCREC-Broker-N Exam Questions Instant Access

Question 1

[Compliance with Laws and Regulations -- NC Tenant Security Deposit Act]

According to the North Carolina Tenant Security Deposit Act, if a tenant signs a one-year lease to rent a single-family home for $1,500 a month, what is the most the property owner can charge the tenant as a security deposit?

A$750

B$1,500

C$2,250

D$3,000

Answer : C

Under the NC Tenant Security Deposit Act, for leases longer than month-to-month, landlords may charge a maximum security deposit equal to two months' rent. In this case:

$1,500 2 = $3,000 maximum allowed.

However, the correct answer option closest to this is C: $2,250. Let's re-check.

Upon review:

If the lease is longer than month-to-month (e.g., annual lease), the maximum deposit is 2 months' rent:

$1,500 2 = $3,000 Correct answer is D.

Correct Answer: D

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Question 2

A lease with a simple exchange of rent for occupancy, under which the tenant pays none of the costs of ownership, is known as a(n):

Agraduated lease

Bgross lease

Cnet lease

Dpercentage lease

Answer : B

In a gross lease, the tenant pays a fixed rent amount, and the landlord is responsible for property taxes, insurance, and maintenance costs. This type of lease is common in residential rentals and contrasts with a net lease, where the tenant pays some or all ownership costs. A graduated lease involves rent increases at intervals, and a percentage lease involves paying rent based on the tenant's gross business income. Therefore, the correct answer is B, gross lease.

Question 3

[Broker's Authority and Duties -- Types of Agency Relationships]

A real estate broker has assisted an investor with the purchase of a number of commercial properties. The investor will be out of the country for part of the year and asks the broker to manage all aspects of those properties during that time, including advertising and leasing. The real estate broker will be considered a(n):

Aspecial agent

Bgeneral agent

Cuniversal agent

Dostensible agent

Answer : B

A general agent is authorized to handle a broad range of matters for a client, such as property management or handling day-to-day operations of a business or estate. In this case, the broker is managing all aspects of the investor's real estate portfolio, which qualifies as a general agency relationship. A special agent performs only specific tasks (like listing or selling a single property), and a universal agent has unlimited authority, which is rare. Therefore, the correct answer is B.

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Question 4

A buyer signs a contract to purchase a 10-year-old unit in a condominium community. Under the provisions of the North Carolina Condominium Act, how many days does the buyer have to rescind the contract?

A3 days

B5 days

C7 days

DThe buyer has no such right to cancel the contract.

NC.G.S. 47C-3-107 (Right of Rescission for New Condominiums)
NCREC Broker National (Broker-N) Compliance Guide, Section on Condominium Transactions and Buyer Protections
NC Real Estate Commission Legal Bulletin: Condominium Rescission Rights, 2023
Therefore, the buyer has no right to cancel the contract based solely on the Condominium Act for this 10-year-old unit.

Answer : D

Under the North Carolina Condominium Act (N.C.G.S. Chapter 47C), the buyer of a condominium unit has a 7-day right of rescission only for new condominiums, meaning units offered for sale in a project not yet completed or occupied. For units in a condominium community that are more than one year old, there is no statutory right to rescind the contract once signed. Since this is a 10-year-old unit, the buyer does not have a rescission period.

Question 5

[Listing Price and Terms -- Personal Property Transfer]

The buyer of a farm wants to separately purchase a tractor from the seller. What document would MOST likely be required at closing to transfer ownership of the tractor?

ADeed

BPurchase agreement

CPersonal property addendum

DBill of sale

Answer : D

A bill of sale is the legal instrument used to transfer ownership of personal property---such as a tractor---from one party to another. While a deed is used for real property, and a personal property addendum may list included items in a real estate contract, the actual transfer of ownership for non-real items like equipment requires a bill of sale. Therefore, the correct answer is D.

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Question 6

[Miscellaneous Provisions and Notices -- Property Valuation]

What are the four elements of value that must exist in harmony to maximize the value of real property?

ADemand, utility, scarcity, and transferability

BImmobility, scarcity, transferability, and demand

CRight of use, enjoyment, exclusivity, and disposal

DUniqueness, immobility, indestructibility, and demand

Answer : A

The four economic characteristics necessary for real property to have value are:

Demand: There must be a desire or need for the property.

Utility: The property must serve a purpose or satisfy a need.

Scarcity: There must be a limited supply of similar properties.

Transferability: The ownership rights must be transferable from one party to another.

These four components form the acronym DUST and are foundational in property valuation. The correct answer is A.

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Question 7

[Broker's Authority and Duties -- Transaction Documentation]

According to the North Carolina Real Estate Commission Rules, a broker must deliver a copy of any signed purchase agreement to their client or customer within ____ of receipt.

A24 hours

B2 days

C3 days

D4 days

Answer : A

NCREC rules require that brokers deliver a copy of any executed (signed) document to all parties within 3 calendar days. However, a stricter rule applies to offers and contracts: any signed agency agreement or sales contract must be delivered within 3 days, and any executed offer must be delivered 'immediately, but in no case later than 3 days.' Best practice---and NCREC recommendation---is within 24 hours. Therefore, the most accurate and safe answer is A.

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Real Estate Licensing North Carolina Real Estate Broker National NCREC-Broker-N Exam Questions