North Carolina Real Estate Exam: Everything You Need to Know

If you are preparing to take the North Carolina real estate salesperson licensing exam, there are certain things you need to be well informed about as part of your preparation process. In this article, we’ll cover everything you need to know about this exam and then some. Here’s a list of what you can expect to learn as you read on: 

• How to schedule the North Carolina real estate licensing exam
• What is on the North Carolina real estate exam
• The difficulty level of the North Carolina real estate exam
• And most importantly, tips on how to pass the North Carolina Real Estate Exam

How to Schedule the North Carolina Real Estate Licensing Exam

Before scheduling the real estate exam, the North Carolina Real Estate Commission (NCREC) requires aspiring candidates to meet the following requirements: 

• Must be 18 years or above 
• Must be a US citizen or a qualified alien 
• Must have a social security number
• Must have completed 75 clock hours of pre-licensing education at an accredited real estate school in North Carolina, with proof

If you meet the requirements above, the next thing to do is submit a license application to the NCREC. You can do this by visiting the NCREC website and applying for a North Carolina Broker License. You must create a profile first and conduct a background check. 

After submitting your application and background check, the NCREC will review your details, and if you are deemed qualified, you will be sent a Notice of Examination Eligibility. After receiving this notice, you can go ahead to schedule your exam. However, note that this eligibility is only good for 180 days, within which period you have to pass the exam. To schedule the exam, visit the PSI website, create an account, and choose an exam date that suits you.

Scheduling the North Carolina real estate exam will cost $164. This includes a license application fee of $100 and an exam fee of $64. You’ll also have to pay for the background check, which costs about $20. 

Where Do You Take the North Carolina Real Estate License Exam?

Candidates will take the North Carolina real estate licensing exam at any designated PSI testing centers around the state. These locations are as follows:

• Charlotte
• Raleigh 
• Fayetteville 
• Greenville
• Ashville 

Can You Take the Exam Online?

No, candidates are not permitted to take the North Carolina real estate exam online. While provisions were made for the exam to be taken remotely in 2021 due to the COVID-19 pandemic, remote testing officially stopped in January 2023.  

Therefore, candidates must choose any testing centers listed above while applying for the exam and be present to take the exam physically. 

What to Bring on the Day of Your Exam?

Candidates are expected to bring the following items along on the day of their North Carolina real estate exams:

• Two non-expired forms of identification with matching names and a valid signature. One of these two must be government-issued and bear your photograph. Examples include a U.S. government-issued driver’s license, U.S. government-issued passport, a U.S. learner’s permit, social security card, and a debit or credit card.
• Note that an online calculator will be provided at the testing center.

What is on the North Carolina Real Estate Exam?

The North Carolina real estate licensing exam questions are divided into two sections, namely: 

• The national real estate section, put together by PSI and covers general real estate principles and practices relevant across the United States
• The state real estate section, put together by the NCREC and focuses on North Carolina real estate laws and regulations

The national portion will cover the following exam categories: 

• Practice of Real Estate
• Property Ownership 
• Contracts
• General Principles of Agency 
• Land Use Controls and Regulations
• Real Estate Calculations
• Financing 
• Property Disclosures
• Transfer of Title 
• Valuation and Market Analysis 
• Leasing and Property Management 
• Commercial, Industrial, and Income Properties

Whereas the state portion of the exam will cover:

• North Carolina Real Estate License Law and Commission Rules
• Other North Carolina Statutes and Topics 
• Closing Details 

Will There Be Math on the Exam?

According to the candidate handbook provided by the NCREC, there are up to 8 math questions in the national portion of the exam. These questions will typically be related to real estate concepts such as:

• Credits and debits
• Property taxes
• Loan-to-Value (LTV) ratios
• Property valuation measurements
• Market sales price
• Return On Investments (ROI)

Candidates must remember that some of these math questions may be difficult and require time to solve. Therefore, it is good practice to leave the tricky questions for the end so it doesn’t affect the time you have to answer other questions.

Is the North Carolina Real Estate Exam Hard?

As expected of any professional licensing exam, the North Carolina real estate exam is quite tough. It is regarded as one of the nation's toughest entry-level licensing tests, and many candidates have reported the state portion to be very challenging and tricky. 

However, this is not to say that it is impossible to pass, and we strongly believe that a candidate’s level of preparation and knowledge of the fundamental concepts of real estate will determine just how well the candidate performs. This implies that if you want to pass the exam easily, you must put extra effort into your preparation.

How Many Questions Are on the North Carolina Real Estate Exam?

The North Carolina real estate exam has 120 multiple-choice questions, 80 of which fall under the national portion with the remaining 40 under the state portion. Candidates are given 3 hours and 30 minutes to complete the exam and have to get 86 questions right out of 120 to pass the exam. 

The passing score for the national portion is 72%, implying that you need to get at least 57 answers right to pass. On the other hand, the state portion requires a passing score of 73%, which implies that you need to answer 29 questions correctly to pass it.

Note that there might be about 15 pretest questions in the North Carolina real estate exam, 5-10 in the national section, and 5 in the state section. These questions are merely used to evaluate the quality of the exam and make improvements and will not affect your overall score. 

What is the Passing Rate for the Real Estate Exam in North Carolina?

Between the 1st of July 2021 and the 30th of June 2022, 3599 candidates took the North Carolina real estate licensing exam within 30 days of finishing their pre-licensing course. Of this number, only 2076 passed the exam on the first try, placing the passing rate for that 1 year period at 57.68%, a figure that is considerably lower than that of many other states. 

It is important to note that this passing rate varies each year and may be influenced by factors such as exam difficulty and the candidate’s preparation level. Therefore, you should thoroughly prepare and practice the tips we’ll share soon to improve your chances. 

How Many Times Can You Take the Real Estate Exam?

Candidates who fail the North Carolina real estate exam can retake it unlimited times if it falls within 180 days of receiving their Notice of Exam Eligibility. Even better, candidates who only fail one section are allowed to retake the section they failed.

Note that you’ll be required to pay an exam fee of $64 for every retake, even if you only retake one section. 

How to Pass the North Carolina Real Estate Exam

Passing the exam might sound hard but it can be done! In fact, there are tested actions you can implement right now to make passing easy. In this section, we’ll cover how you can get the most out of your studies.

Create a Study Schedule

Creating a study schedule is one of the first things you should do when preparing for your North Carolina real estate licensing exam. This schedule should mark out the hours you’ll study each day while considering your daily activities and learning style. 

If you’d like to create a study schedule, here are some things to put in mind: 

• Make sure your study schedule is one that you can be consistent with. The only way to achieve this is by setting your study hours to periods of the day when you’re free and assimilate best. We recommend studying for a little bit every night or at least every other night.
• Dedicate more hours to the topics that are most important and/or difficult to understand. This enables you to spread your time effectively across all topics without leaving anyone out.
• Breaks are important when studying as they help prevent fatigue and help keep you focused. Therefore, take short breaks every hour while studying.
• Try to get between 7 to 9 hours of sleep every night. This gives your brain the rest it needs and helps you remain at the top of your game daily. 

Use Acronyms and Mnemonic Devices

Acronyms and mnemonic devices are memory aids that simplify complicated information and make it easy for the human brain to process. This makes them effective tools to assist you in studying for your North Carolina real estate exam.

Acronyms work by forming a word with the first letters of each word in a phrase, thereby making the phrase easier to remember. This is great for when you need to remember some complex real estate terminologies or phrases. An example of this is OLD CAR, which represents the fiduciary duties of a real estate agent, namely: 

• O: Obedience
• L: Loyalty
• D: Disclosure
• C: Confidentiality
• A: Accountability
• R: Reasonable Care and Diligence

A mnemonic device is associating certain information with something easily related. For example, if you were to memorize the various types of residential properties for a certain kind of financing, a good mnemonic device would be “Sing To Children Daily.”

• SING for Single-family homes
• TO for Townhomes
• CHILDREN for Condos
• DAILY for Duplexes

Join a Study Group

Joining a study group is an effective strategy when practicing for your real estate exam. Not only does it help you gain knowledge from more people on some real estate concepts, but it also increases your motivation and sense of accountability.

Get Guided Help

One of the fastest and easiest ways to study for the exam while ensuring you’re taking the best measures to prepare for the exam is by signing up for our North Carolina real estate exam prep package.

When you buy this package, you will get an outline of what exactly you need to study as well as resources to help you put into practice what you learn. This includes: 

• Access to over 1,500 North Carolina real estate exam practice questions
• Customizable practice state exams
• Vocabulary flashcards
• Video explanations
• An E-book study guide. 

Final Thoughts on the Real Estate Exam in North Carolina

As an aspiring real estate agent in North Carolina, you must pass the state’s real estate exam to get your license and practice legally. We have provided you with everything you need to know about this exam to help you prepare and practical tips to ensure you pass on your first try.