Free NCREB Practice Questions

Question 1

At an open house, a visitor first asks only the list price and property-tax amount. Later, the visitor says, "I must buy before my lease ends, I can spend up to $525,000, and I need advice on how much to offer." The listing broker has not reviewed the Working With Real Estate Agents Disclosure with the visitor. Which response satisfies the broker's obligation at that moment?

Accepted Answer

Review the disclosure now, give the visitor a copy, and clearly disclose seller-agency status

Answer

Continue the discussion because first substantial contact begins only when an offer is written

Answer

Require the visitor to sign an exclusive buyer-agency agreement before giving any further information

Answer

End the conversation because sharing motivation automatically created an agency conflict

Question 2

An appraiser is using direct capitalization to value a 10-unit property. Annual potential gross income is $120,000, vacancy and collection loss is $6,000, laundry income is $3,000, operating expenses are $45,000, and mortgage debt service is $24,000. If the market capitalization rate is 8%, what is the indicated value?

Accepted Answer

$900,000

Answer

$600,000

Answer

$862,500

Answer

$1,462,500

Question 3

At month-end, a firm's adjusted trust-account bank balance, journal balance, and total trial balance each equal $82,400. One property ledger, however, shows a negative balance of $1,200 while another property ledger shows a positive balance of $9,600. What does this record set establish?

Accepted Answer

A negative client ledger is prohibited and requires immediate investigation and correction

Answer

The account is compliant because the three aggregate balances agree

Answer

The deficit may remain as long as the overall bank balance is positive

Answer

The firm may transfer $1,200 from the other property ledger and explain the adjustment in next month's reconciliation

Question 4

A rental applicant with a non-obvious disability requests permission to keep an assistance animal in a building with a no-pet policy. The applicant provides reliable information establishing the disability-related need for the animal. How should the housing provider handle the request?

Accepted Answer

Grant the accommodation without a pet fee; charge actual damage if it occurs

Answer

Approve the request after collecting the standard pet deposit

Answer

Require proof that the animal is a certified and task-trained service dog

Answer

Deny the request because applying the no-pet rule uniformly prevents discrimination

Question 5

Under the current North Carolina standard Offer to Purchase and Contract, a buyer's Due Diligence Period expired at 5:00 p.m. Friday. On Monday, the buyer's lender denied the loan. No financing addendum created a separate termination right, and the seller is ready to perform. Which statement best describes the buyer's position?

Accepted Answer

Loan denial alone creates no automatic financing contingency, so failure to close may be a buyer breach

Answer

The standard form permits termination for financing failure at any time before Closing

Answer

The buyer may recover the earnest money, although the seller may keep the due diligence fee

Answer

The loan denial automatically reopens the Due Diligence Period for three business days

Question 6

A restaurant tenant bolts a commercial oven and ventilation hood to the building. The lease expressly states that tenant-installed kitchen equipment remains the tenant's personal property and may be removed before the lease expires if the tenant repairs any removal damage. At the end of the term, the landlord claims the equipment as fixtures. Who has the better claim?

Accepted Answer

The tenant, because the written lease controls and the equipment may be removed under its terms

Answer

The landlord, because bolting an item to the building always makes it a fixture

Answer

The landlord, because equipment adapted to a restaurant automatically belongs to the real estate

Answer

The tenant, but only if the landlord transfers the equipment back by bill of sale

Question 7

Annual property taxes of $4,380 are unpaid and are paid in arrears. Closing occurs April 10, 2026, using a 365-day year, and the seller owns the day of Closing. What tax proration should appear?

Accepted Answer

$1,200 seller debit and buyer credit

Answer

$1,188 seller debit and buyer credit for 99 days

Answer

$1,200 buyer debit and seller credit for the same period

Answer

$3,180 seller debit and buyer credit for the remaining year

Question 8

An owner delivers a deed to Avery, who does not record it. The owner later conveys the same parcel to Blake for value. Blake knows about Avery's deed but records first. No fraud or statutory exception applies. Under North Carolina's Connor Act, who ordinarily prevails?

Accepted Answer

Blake, because North Carolina's pure-race rule favors the first recorder

Answer

Avery, because Avery received the first delivered deed

Answer

Avery, because Blake's actual knowledge defeats the later deed despite Blake's earlier recording

Answer

Avery and Blake, as tenants in common because delivery makes both deeds equally effective

Question 9

A listing broker receives a laboratory report showing an indoor radon concentration of 6.2 pCi/L. The seller says, "It is below 10, so tell buyers it is acceptable," and declines mitigation. Which course of action is appropriate?

Accepted Answer

Disclose the result and recommend mitigation; the action level is 4 pCi/L

Answer

Describe the result as acceptable because it is below 10 pCi/L

Answer

Wait to disclose until a buyer obtains a second test confirming the reading

Answer

Cancel the listing and report the property to the local health department as uninhabitable

Question 10

A buyer signs and submits an offer at $410,000. The seller strikes through the price, writes $420,000, initials the change, signs the document, and returns it to the buyer. What is the legal effect of the seller's response?

Accepted Answer

It is a counteroffer that rejects the original offer

Answer

It is an acceptance because the seller signed the buyer's original document

Answer

It creates an option allowing the buyer to purchase at either price

Answer

It forms an executed contract because both parties have signed a writing

Free NCREB Practice Questions

Domain 1: Real Property

Question 1

Domain 3: Valuation

Question 2

Domain 4: Contracts & Agency

Question 3

Domain 5: Real Estate Practice

Question 4

Domain 6: Property Disclosures

Question 5

Domain 8: Real Estate Math

Question 6

Domain 10: Agency

Question 7

Domain 12: Brokerage Practice

Question 8

Domain 14: Contracts/Closing

Question 9

Domain 16: Other NC Laws

Question 10

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