NC Real Estate Exam Questions and Answers with Verified Solutions

NC Real Estate Exam Questions and Answers with Verified Solutions

Which statute governs the ad valorem taxation of property?

• Machinery Act
• General Statute
• The Ad Valorem Act
• Real Estate Taxation Act ✔✔A. Machinery Act

This act provides a framework for listing, appraising, and assessing real and personal property

Which type of valuation technique applies a standard percentage increase or decrease to all property in a specified location?

• Valuation
• County appraisal
• Mass appraisal
• There is no such appraisal ✔✔C. Mass Appraisal

This is a valuation technique that is sometimes used for tax assessment purposes. It is also referred to as a horizontal adjustment.

What is am octennial reappraisal?

• Grouping reappraisals by square footage and year built
• The statutory reappraisal of all real property in North Carolina for tax purposes
• Reappraisals done in groups of eight
• None of the above ✔✔B. The statutory reappraisal of all real property in North Carolina for

tax purposes.

This is an octennial reappraisal and requires all counties to reappraise property within in a specified time period.

The ______ is responsible for real estate licensing.

• Federal Real Estate Commission
• Housing and Urban Development

• North Carolina Real Estate Commission (NCREC)
• County Clerks Office ✔✔C. North Carolina Real Estate Commission (NCREC)

This commission is responsible for real estate licensees, education, and other resources regarding real estate in the state of North Carolina.

Which type of lien provides security to persons that work on real property owned by others?

• Mortgage lien
• Mechanic's lien
• Real estate tax lien
• State income tax lien ✔✔B) Mechanic's lien

This type of lien is typically used to guarantee of payment to builders, contractors, and construction firms

Which of the following is a requirement to become a real estate broker in North Carolina?

• 18 years of age

• 90 hours of real estate courses
• Payment of an application fee
• All of the above ✔✔D) All of the above

All of the above are requirements to become a real estate agent in North Carolina. The real estate courses must be approved and in a classroom setting.

Which type of broker licence status category is "entry level" and requires supervision?

• Provisional broker
• Broker in charge

C.Broker

• There is no such license status category ✔✔A) Provisional broker

This is an entry level license status and only requires 75 hours of pre-licensing education and passing of the license examination

Which statement is true about the North Carolina Real Estate Commission?