Educational Resources: Take North Carolina Real Estate Sample Tests, Application Steps and Tips

The North Carolina Real Estate Broker License Examination is your next hurdle to pass before obtaining your license.

Examination resource PSI administers this entry-level test,¹ which has two sections. The National section tests your knowledge of US brokerage rules and requirements, while NCREC develops the State section and quizzes you on North Carolina real estate laws.

The exam has 40 items in the State section and 80 in the National section.

Applicants obtain separate scores for both sections and can check results posted in two places. In some scenarios, you might only be required to take the State portion of the test, but most first-time real estate brokers need both.

It’s not free to take the licensing exam. You’ll spend $100 on your application and another $56 for the exam.

You can retake the test as many times as needed, but you must pay the above to retake one or both sections.

You also must pass the other section within 180 days of passing the first. If you wait too long, you have to take both sections over, even if you have already passed one.

Here is a breakdown of what to expect on the North Carolina Real Estate Broker License Examination.

• Basic real estate concepts
  • Basic real estate investment
  • Basic construction
  • Property insurance basics
• Property ownership and interests
• Property taxation and assessment
• Transfer to Title of Real Property
  • Federal Income Taxation of Home Sale/Ownership
• Land Use Controls
• Environmental Issues in Real Estate
• Brokerage Relationships: Laws and Practice
• Agency Contracts (Sales) and Related Practices
• Basic Contract Law
• Sales Contract and Related Procedures
• Real Estate Financing
• Closing a Sales Transaction
• Real Property Valuation
• Landlord and Tenant
• Property Management
• Fair Housing
• Real Estate Commission Rules and License Law
• Agent Safety
• Real Estate Mathematics

You must complete 120 questions total plus five to 10 non-scored pretest questions. To pass the State section, answer 29 of the 40 questions correctly.

You need a score of 57 out of 80 to pass the National section.

NCREC will send you a Notice of Exam Eligibility if you can take the real estate brokerage exam. You have 180 calendar days to set up your exam from receiving the notice.

Here are some sample questions to help you prepare for the exam courtesy of NCREC.

If a broker with Company A puts a property on the market for $150,000, but a provisional broker with Company B sells it for $140,000, and the total brokerage commission is five percent of the total sales price to go to both brokerage firms, and the selling agent has a share of 60 percent of the firm’s share, how much does the provisional broker with Company B make?

A. $4,200
B. $3,500
C. $2,100
D. $1,400

The answer is C, $2,100.

What law governs broker and real estate seller relationships when the broker lists the seller’s property?

A. Law of Agency
B. Statute of Limitations
C. Law of Conveyance
D. Statute of Frauds

The correct response is A, Law of Agency.

How To Complete Your North Carolina Real Estate Commission License Application in 5 Steps

The following five-step overview outlines the complete process for becoming an NC real estate broker.

Step 1: Review the Criteria

Review the above criteria to determine if you can work as an individual or hired broker in the state.

Step 2: Complete the Pre-Licensing Course

Your brokerage goals begin with the right education. You must complete the North Carolina Broker Prelicensing Course and pass the examination issued to you at the end of the course to proceed.

There are exceptions to this rule. For example, if you’re coming from another state, you can sometimes skip the prelicensing education, which we’ll delve into more later.

Another exception is if you already have prior real estate education.

NCREC has a law called Commission Rule 58A.0304.² Real estate brokers with a bachelor’s or higher degree in real estate development, real estate finance, or real estate brokerage don’t need a prelicensing education.

That’s also the case if you have a law degree accredited by the U.S. Department of Education.

Step 3: Apply for the License

After obtaining your prerequisite credits but before taking the exam, apply for a real estate broker’s license through NCREC.

The application determines if you can proceed with the licensing exam. This is when you’ll pay the $100 application fee.

You can go to the North Carolina Real Estate Commission website to begin your online registration.³ You must have an NCREC login.

Once you log in, click the option marked Create a Full Login. You will see an option to select New Applicant Registration Information.

Input your full name (first, middle, and last), home address, Social Security number (without dashes), and email address.

After creating a password, choose Apply for a Background Check to request your criminal record report. You may have to pay for the associated fees.

The Commission will review those applications with character issues more carefully, issuing results individually.

Some factors NCREC will look at are whether you have affidavits attesting to your character, your crime commission, if you completed court-ordered rehab, the circumstances attributing to the crime, your age at the time, and how serious the crime was.

NCREC will also review whether you’ve received subsequent jail time or parole and what your employment record has been since you were released when deciding whether you’re permitted to test for a brokerage license.

Can you get a real estate license with a misdemeanor in NC? Yes, since the state doesn’t perceive misdemeanors as overly serious crimes.

You could even possibly test for your license if you have a felony on your record. It all depends on the Commission’s assessment.

Step 4: Register To Take the Exam

NCREC will send your Notice of Exam Eligibility by email, so check for a message from [email protected]. You can then register to take the exam, study, and do your best to pass the first time.

Step 5: Find a Sponsoring Broker

Passing the NC real estate brokerage exam is a major achievement, but you’re not ready to begin practicing real estate quite yet. You will work with a sponsoring broker next.

The sponsoring broker must be a sole proprietor or actively working at an NC real estate firm. You don’t need real estate experience to qualify to work for a sponsoring broker, as this is how you obtain the on-the-job skills that will help you succeed.

You might work at this real estate firm as a broker after you exit the sponsored role, or you could move on and work for another firm or start your own real estate service.

Selecting the right broker will ensure you gain good experience and set you up for success. Review the broker or brokerage firm’s reputation and ethics, and ask as many questions as required to feel confident with your choice.

For example, you might ask whether you’re provided with marketing materials, if you receive benefits, what the commission structure looks like, and how much on-the-job training you will receive.

Financial Obligations for Membership in the North Carolina Real Estate Commission

Keeping your North Carolina real estate license current through NCREC costs $45 per year in addition to the application and licensing fees you’ll pay, which are $165 total.

Deciding To Apply for National Association of Realtors® (NAR) Membership

Now that you’re a practicing real estate broker in North Carolina, consider joining the National Association of REALTORS® (NAR).⁴

With more than 1.5 million members nationwide representing more than 1,200 territories and states, NAR has a far-reaching presence.

Membership isn’t free, with dues costing $150 in 2023 and up to $156 in 2024.⁵ For that annual cost, you can get listed on NAR directories, attend exclusive events, and access education and training to make you a better real estate broker.

The membership might not be cheap, but many real estate agents and brokers who have joined laud NAR’s worth. Your membership could act as the springboard for your career, allowing you to make far more money than you ever spent on the membership, even if you join several years in a row.

How Long Does the Real Estate Application Process Take?

Once you’ve set your sights on a future in real estate brokerage, you might want to have your license and begin working tomorrow, but that’s an unrealistic time frame.

Prelicensing education can delay your aspirations.

The goal of your schooling shouldn’t be a rush to the finish. Rather than considering this component of the process a marathon, think of it as a sprint.

Take your time with the coursework, absorbing the material to pass the end-of-course exam. If you don’t pass, it will create difficulties in obtaining your brokerage license later.

How long it takes you to complete your pre-license education depends on whether you have other obligations or can commit more fully to the coursework. Either way, it’s still 75 hours, so whether it takes you a few weeks or months varies.

NCREC states that if you apply to take the real estate brokerage exam, get promptly approved, and pass your real estate licensing test the first time you take it, you could move on to the next phases of the process within 10 days.

While doable, it’s a best-case scenario for many, especially if you get held up with character issues on behalf of NCREC. Then, your application process can take substantially longer.