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

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Total 125 questions
Question 1

[Compliance with Laws and Regulations -- Fair Housing Act]

The property manager of an apartment building would be in violation of the federal Fair Housing Act if they discriminated against a prospective tenant on the basis of:



Answer : B

The federal Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, disability, and familial status. Familial status includes pregnant women and families with children under 18. Age and military status are not federally protected classes under this law (though they may be under local ordinances). Marital status is not a protected class under federal law either. Therefore, the correct answer is B.

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Question 2

[Parties and Property Description]

A homeowner signs a contract with a broker stating that the homeowner will pay the broker a commission if the broker finds a ready, willing, and able buyer for the house in the next 60 days. What is the BEST way to describe this contract as of the day they sign it?



Answer : B

This is an express contract because terms are clearly stated, and executory because performance (finding a buyer) is yet to occur. It is not executed until the broker succeeds. Thus, it's an express, executory contract as defined in contract law and Broker N study materials.


Question 3

[Offers and Negotiations -- Contract Status]

A contract in which one or both parties have not yet completed performance of their contractual obligations is referred to as:



Answer : B

An executory contract is one in which terms have been agreed upon, but some or all of the obligations have yet to be performed. For example, a purchase contract where the closing has not yet occurred is executory. An executed contract is one where all parties have completed their obligations. A voidable contract is valid unless canceled by one party due to a legal defect. An unenforceable contract cannot be upheld in court. Therefore, the correct answer is B.

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Question 4

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):



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 5

Under the terms of the NCAR/NCBA Offer to Purchase and Contract (Standard Form 2-T), the settlement date can be delayed for how long before the contract is no longer enforceable and binding on all parties?



Answer : C

According to Paragraph 12 of the NCAR/NCBA Offer to Purchase and Contract (Form 2-T), the settlement date may be extended by up to 7 calendar days if either party is acting in good faith and is prepared to settle. This flexibility ensures neither party is penalized for delays that are minor and in good faith, but it limits how long the contract can be extended before a material breach could occur. Therefore, the settlement date can be delayed up to 7 calendar days and still remain enforceable.

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Question 6

Property in Town A is assessed at 50% of market value. The property tax rate is $32 per $1,000. If the market value of a home is $630,000, what is the annual tax assessment?



Answer : C

Step 1: Determine assessed value

Market value = $630,000

Assessment rate = 50%

Assessed value = $630,000 0.50 = $315,000

Step 2: Calculate tax

Tax rate = $32 per $1,000

$315,000 $1,000 = 315

315 $32 = $10,080

However, this result matches option C. Therefore:

Corrected Final Answer: C. $10,080

Explanation Confirmed: Assessed value is 50% of $630,000 = $315,000. Tax at $32 per $1,000 means $315 $32 = $10,080. Correct answer is C.

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Question 7

[Broker's Authority and Duties]

At a minimum, how many members of the North Carolina Real Estate Commission are required to be active real estate brokers?



Answer : C

Per the North Carolina Real Estate Commission statutes, the Commission consists of 7 members, a majority of whom must be active real estate brokers. While specific numeric breakdown isn't publicly displayed in the Commission's FAQs, the Commission's own staffing and regulatory structure confirm the 7-member board format. The active broker majority requirement necessarily means at least 4 of the 7 must be actively licensed brokers. Therefore, C (7 members) is the correct answer.


NCREC General FAQ and organizational structure descriptions

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Total 125 questions