Alamance
Alexander
Alleghany
Anson
Ashe
Beaufort
Bertie
Bladen
Burke
Cabarrus
Caldwel
Caswell
Catawba
Chatham
Clay
Cleveland
Columbus
Craven
Cumberland
Davidson Dare
Davie
Duplin
Durham
Edgecombe
Franklin
Gaston
Gates
Graham
Granville
Greene
Halifax
Harnett
Henderson
Hoke
Hyde
Iredell
Jackson
Johnston
Jones
Lenoir
Lincoln
McDowell
Macon
Madison
Martin
Mitchell
Moore
Nash
Northampton
Onslow
Orange
Pamlico
Pender
Person
Pitt
Polk
Robeson
Rowan
Rutherford
Sampson
Scotland
Stanly
Stokes
Surry
Swain
Transylvania
Tyrrell
Union
Vance
Wake
Warren
Washington
Watauga
Wayne
Wilkes
Wilson
Yadkin
Yancey
PKY
40
40
40
85 95
77 85
26
Asheville
Asheboro
Greensboro Durham
Charlotte
Raleigh
Washington
Jacksonville
Wilmington
Fayetteville New Benr
Rocky M ount
Winston-Salem
Haywood
Buncombe
Avery
Pasquotank
Perquimans
Currituck
Camden
Chowan
Randolph
Montgomery
Mecklenburg
Rockingham
Lee
Richmond
Forsyth
Guilford
Carteret
Hertford
Brunswick
Cherokee
Real Estate
Licensing in
North Carolina
Published by the North Carolina
Real Estate Commission
September 2008
This booklet contains:
• Information on the Licensing Process and
License Qualifi cations
• License Examination Information
• Application Form and Instructions
USING THIS BOOKLET
North Carolina’s Real Estate License Structure
North Carolina operates a “broker only” real estate licensing system. For an overview of this system and the various
license categories, see pages 3-4.
License Application Process and Qualifi cation Requirements
Th e North Carolina Real Estate Commission licenses individuals and business entities as real estate brokers. Th is
booklet is designed to guide all prospective applicants for individual real estate broker licensees through the license
application process. If you are interested in applying for an individual real estate license, you should read this
booklet carefully, especially pages 3-9, and follow all instructions precisely. Use the detailed Contents page to
locate specifi c information you need. If you are interested in obtaining a fi rm broker license for a business entity, see the
Commission’s web site, www.ncrec.state.nc.us, for an application and instructions.
The License Examination
Pages 9-20 of this booklet contain essential information for all persons required to take the license examination.
Th e booklet provides general information about the examination, examination fee, scheduling an examination, taking
the examination and examination rules and procedures.
New Licensee Information
Information about license issuance and activation, postlicensing education, continuing education and license re-newal
begins on page 20.
Licensing by Reciprocity and License Reinstatement
Information about licensure by reciprocity (exempting examination based on reciprocal licensing arrangements
with certain states) and license reinstatement begins on page 22.
North Carolina Real Estate License Law and Commission Rules
Th e North Carolina Real Estate License Law, Real Estate Commission Rules, Trust Account Guidelines and Li-cense
Law and Rule Comments may be found at the Commission’s website, www.ncrec.state.nc.us, as well as in the
booklet North Carolina Real Estate License Law and Commission Rules, which can be ordered online at the Commis-sion’s
website.
Contents Page
Use the Contents page to fi nd information on specifi c topics.
5,000 copies of this public document were printed at a cost of $.XXX per copy.
©2008, 2007, 2006, 2005, 2004, 2003, 2002, 2001, 2000, 1998, 1997, 1996, 1995, 1994, 1993,
1992, 1991, 1990, 1989, 1988, 1987, 1986, 1985, 1984, 1983
North Carolina Real Estate Commission
1313 Navaho Drive, P.O. Box 17100
Raleigh, North Carolina 27619
Phone 919/875-3700
Real Estate Licensing in North Carolina 1
Contents
INTRODUCTION .........................................................................................................................3
Who Is Required to Have a Real Estate License in North Carolina ....................................................................3
License Categories ............................................................................................................................................3
LICENSE QUALIFICATION REQUIREMENTS ..........................................................................4
License Qualifi cation Options .............................................................................................................................4
Licensing Nonresidents by Examination .............................................................................................................5
Consideration of Applicant’s Character ...............................................................................................................6
APPLICATION PROCESS ..........................................................................................................7
Obtaining a License by Examination ...................................................................................................................7
Timeframe for Obtaining a License by Examination ...........................................................................................7
Completing the Application Form ........................................................................................................................7
Application Enclosures .......................................................................................................................................8
Criminal Record Report Requirement .................................................................................................................9
Application Filing ..............................................................................................................................................9
Updating Application Information .......................................................................................................................9
LICENSE EXAMINATION – GENERAL INFORMATION .............................................................9
How Examination is Administered .......................................................................................................................9
Preparing for the Examination ..........................................................................................................................10
Examination Question Formats .........................................................................................................................10
Examination Topics ..........................................................................................................................................10
Examination Forms ..........................................................................................................................................12
Number and Value of Questions .......................................................................................................................13
Helpful Hints .....................................................................................................................................................13
SCHEDULING AN EXAMINATION ............................................................................................13
Applying for Examination .................................................................................................................................13
Notice of Examination Eligibility Valid for 180 Days ..........................................................................................13
Examination Fee ..............................................................................................................................................14
Examination Center Locations ..........................................................................................................................14
Making an Examination Appointment ...............................................................................................................14
Special Examination Accommodations .............................................................................................................15
TAKING THE LICENSE EXAMINATION ..................................................................................15
Reporting to Examination Center ......................................................................................................................15
Exam Center Addresses and Directions ...........................................................................................................16
Required Identifi cation and Signature ...............................................................................................................17
Items to Bring and Prohibited Items ..................................................................................................................17
Examination Rules ...........................................................................................................................................18
Check-in Procedures and Examination Tutorial ................................................................................................18
Examination Time ...........................................................................................................................................18
Immediate Examination Results .......................................................................................................................18
Examination Review by Failing Applicants ........................................................................................................18
License Issuance for Passing Applicants .........................................................................................................19
OTHER EXAMINATION INFORMATION ..................................................................................19
Postponing an Examination Appointment .........................................................................................................19
Excused Absences ...........................................................................................................................................19
Forfeiture of Fees .............................................................................................................................................19
Expedited Reapplication and Exam Rescheduling for Previously Scheduled Applicants for Examination .......20
Applicants Who Must Refi le an Application with the Commission ....................................................................20
2 Real Estate Licensing in North Carolina
Emergency Exam Center Closing .....................................................................................................................20
NEW LICENSEE INFORMATION .............................................................................................20
Issuance of Licenses .......................................................................................................................................20
Initial Licenses Are Inactive Provisional Broker Licenses .................................................................................21
Activation of Initial Inactive Provisional Broker License ...................................................................................21
Requirement for Active Status and Notifi cation of Changes in Employment or Address ..................................21
License Renewal ..............................................................................................................................................21
Postlicensing Education for Provisional Brokers ...............................................................................................21
Postlicensing Course Waiver Based on “Equivalent Education/Experience” ....................................................22
Continuing Education .......................................................................................................................................22
LICENSING BY RECIPROCITY ...............................................................................................22
Basic Qualifi cation Requirements for Licensure by Reciprocity ........................................................................22
Reciprocal Jurisdictions ...................................................................................................................................23
License Equivalency ........................................................................................................................................23
Application Requirements for Reciprocal License ............................................................................................23
Procedures and License Issuance – Reciprocal Licensing ...............................................................................24
Postlicensing Education and Continuing Education Requirements .................................................................24
Conversion of Reciprocal Nonresident License to Resident License ...............................................................24
North Carolina Licensees Wanting a Reciprocal License in Another Jurisdiction .............................................24
LICENSE REINSTATEMENT ....................................................................................................24
License Expired Six Months Or Less ................................................................................................................24
License Expired More Than Six Months ...........................................................................................................25
Demonstrating Current Knowledge of Real Estate Brokerage .........................................................................25
License Expired, Revoked or Surrendered For More Than Six Months But Not More Than Two Years ...........25
License Expired, Revoked or Surrendered For More Than Two Years But Not More Than Five Years ............25
License Expired, Revoked or Surrendered For More Than Five Years ............................................................25
Applicant with Extraordinary Education and/or Experience Qualifi cations ........................................................25
Other Factors Not Considered ..........................................................................................................................26
Possible Disciplinary Action for Unlawful Activity ..............................................................................................26
Status of Reinstated License ............................................................................................................................26
Real Estate Licensing in North Carolina 3
INTRODUCTION
This booklet has been prepared and published by
the North Carolina Real Estate Commission for
the purpose of providing information to interested persons
regarding the requirements and procedures for obtaining
North Carolina real estate licenses. Although every eff ort
has been made to consolidate into this single publication
basic information concerning the major areas of interest to
prospective real estate licensees, many questions may have
been left unanswered. Th erefore, persons who desire more
detailed information regarding specifi c points of concern are
advised to contact the Licensing Section at the Real Estate
Commission Offi ce.
This publication is required reading for anyone
interested in obtaining a North Carolina real estate
license. READ IT CAREFULLY!
Additional copies of this booklet are available without
charge from the North Carolina Real Estate Commission.
Who Is Required to Have a Real Estate
License in North Carolina
In general, any person or business entity who transacts
real estate business (including time share transactions) for
compensation as an agent for another must fi rst obtain a
real estate license issued by the North Carolina Real Estate
Commission. Th e Real Estate Commission, an indepen-dent
government agency of the State of North Carolina, is
responsible for licensing and regulating all real estate agents
in this state. Operating as a real estate agent in North Caro-lina
without the proper license is a criminal off ense. For
information concerning North Carolina real estate licenses
and the laws and rules governing real estate brokerage prac-tice
in North Carolina, go to the Commission’s website at
www.ncrec.state.nc.us.
License Categories
Eff ective April 1, 2006, North Carolina began issuing
only broker licenses and eliminated the separate salesper-son
license. Existing salesperson licenses were converted to
broker licenses. Although there is only one “type” of license,
a broker license, there are several license categories as de-scribed
below:
PROVISIONAL BROKER – Th is is the entry-level li-cense
category. Upon satisfying all the license qualifi cation
requirements (including, for most applicants, passing the li-cense
examination) most license applicants are initially issued
a “provisional broker” license, which is technically a broker
license on “provisional” status. A provisional broker may
generally perform the same acts as a broker so long as he or
she is supervised by a broker who is a designated broker-in-charge,
but provisional brokers cannot operate independent-ly.
Once licensed, a provisional broker must complete, within
prescribed time periods, a postlicensing education program in
order to terminate the “provisional” status of his or her license
and to avoid license inactivation and possible eventual cancel-lation.
[NOTE: Some applicants are eligible to directly ob-tain
a broker license that is NOT on “provisional” status – see
the section on “License Qualifi cation Requirements.”]
BROKER – A provisional broker who satisfi es the
postlicensing education requirements to terminate the “pro-visional”
status of his or her license becomes a “broker”
who is authorized to engage in brokerage in one of the two
following capacities:
(1) Work for another broker who is a broker-in-charge
or work for a licensed brokerage fi rm. (A broker requires less
supervision by a broker-in-charge than a provisional broker.)
(2) Operate independently as a “sole proprietor;” how-ever,
if the broker-sole proprietor will engage in activities
requiring him or her to also be designated as a broker-in-charge
(described below under “BROKER-IN-CHARGE),
then he or she must also qualify as a broker-in-charge.
(IMPORTANT NOTE: Th is means that an independent
broker-sole proprietor must also be a broker-in-charge to law-fully
engage in most brokerage activities.)
BROKER-IN-CHARGE – Each real estate offi ce must
have a broker-in-charge designated with the Real Estate
Commission for the offi ce and each broker-sole proprietor
who will handle trust funds requiring deposit in a trust ac-count,
have other licensees affi liated with him or her, or
advertise or promote his or her services in any manner (in-cluding
distribution of business cards or listing property for
sale or lease) must also fi rst designate himself or herself as a
broker-in-charge. To qualify to be a broker-in-charge, a
broker must have two (2) years full-time or part-time equiva-lent
brokerage experience in any state within the previous fi ve
(5) years, or be found by the Commission to possess equiva-lent
qualifi cations. [See the Commission’s website at www.
ncrec.state.nc.us for more information on broker-in-charge
requirements and responsibilities.]
FIRM – A business entity (corporation, limited liability
company, partnership, etc.) must hold a real estate “fi rm”
license in order to engage in real estate brokerage activities.
A fi rm license is a broker license issued to a business entity.
Sole proprietorships are exempt from the fi rm licensing re-quirement.
A fi rm license application and instructions may
be obtained by accessing the Commission’s website at www.
ncrec.state.nc.us.
LIMITED NONRESIDENT COMMERCIAL BRO-KER
– A limited nonresidential commercial broker license
may be issued to a broker or salesperson residing in a state
other than North Carolina who holds an active real estate
broker or salesperson license in the state where his/her prima-ry
place of real estate business is located. A person holding a
limited nonresident commercial broker license may engage
in transactions for compensation involving “commercial real
4 Real Estate Licensing in North Carolina
LICENSE QUALIFICATION REQUIREMENTS
To qualify for a real estate broker license, an applicant must:
(1) Be at least 18 years of age;
(2) Be a United States citizen, a non-citizen national
or a qualifi ed alien under federal law;
(3) Have a social security number;
(4) Satisfy one of the License Qualifi cation Options
listed below;
(5) Pass the real estate license examination (Ex-ceptions:
Persons eligible for licensure by
reciprocity and some license reinstatement
applicants); and
(6) Satisfy the Commission that they possess the
requisite character to be entitled to licensure.
License Qualifi cation Options
Applicants applying under license qualifi cation options 1-4 below must also pass the North Carolina real estate license
examination. Applicants qualifying under license qualifi cation option 5 for a license by “reciprocity” are not required to take North
Carolina’s real estate license examination.
All applicants must submit a properly completed “Application for Real Estate License” form and required enclosures in addition
to the required documentation listed below, and all applicants must demonstrate to the satisfaction of the Real Estate Commission
that they possess satisfactory moral character (see “Application Process” in this booklet).
An applicant (resident or nonresident) may qualify for the North Carolina
real estate license examination by completing (passing), within three years pri-or
to license application, a Commission-approved 75-classroom hour Broker
Prelicense Course in North Carolina. [Th is course is not available online, on
computer disk, by correspondence or by any other distance education meth-od.]
Required Documentation:
Certifi cate of Course Completion (original) issued by the school for submission to the Commission. DO NOT submit
a transcript, a grade report or a certifi cate provided by the school for display purposes.
An applicant (resident or nonresident) may qualify for the North Carolina
real estate license examination based on holding a current real estate license in
another state that has been on active status within one year prior to application.
[See exceptions for Florida and Texas residents on page 6.] Upon passing the
examination and demonstrating satisfactory moral character, a person licensed as
a salesperson in another state will be issued a North Carolina provisional broker license and a person licensed as a broker in another
state will be issued a North Carolina broker license that is NOT on provisional status.
Required Documentation:
Certifi cation of License History (original with raised or attached agency seal) from the licensing agency in the state in
which the applicant is licensed. Th e certifi cation must have been issued within the previous six months and must indicate
the license history and any disciplinary action taken or complaints pending against the applicant. A copy of the applicant’s
real estate license certifi cate or pocket identifi cation card or a license history downloaded from a licensing agency website is
not acceptable. Proof of education is not required.
An applicant (resident or nonresident) seeking waiver of the 75-hour North
Carolina broker prelicense course based on completion of salesperson prelicense
education in another state may qualify to take the North Carolina real estate
license examination if the completed prelicense education in the other state: (1)
consisted of at least 75 classroom (or legitimately equivalent) hours of instruc-tion
[no partial credit granted]; (2) was completed within three years prior to
estate” in North Carolina, but must enter into a declaration
of affi liation and a brokerage cooperation agreement with
a resident North Carolina broker and must be supervised
by the North Carolina broker while performing commercial
real estate brokerage services in North Carolina. An appli-cation
form and instructions may be obtained by accessing
the Commission’s website at www.ncrec.state.nc.us.
r
o
Pc
o
Option #1
Completion of the Prescribed
75-Classroom Hour North
Carolina Broker Prelicense
Course
r
a[
e
Option #2
Licensure as a Real Estate
Salesperson or Broker in
Another State
Cel
i
ct
Option #3
Completion in Another State
of a Real Estate Salesperson
Prelicense Course of at Least
75 Classroom Hours
Real Estate Licensing in North Carolina 5
Licensing Nonresidents by Examination
Resident licensees of other jurisdictions with which
North Carolina does NOT have a reciprocal licensing ar-rangement
and residents of other jurisdictions who do not
hold a real estate license may generally apply for a nonresi-dent
North Carolina real estate license by satisfying one of
the above-described qualifi cation options and passing the
North Carolina real estate license examination. North Car-olina
law (G.S. 93A-9) provides that applications for licen-sure
may be accepted from residents of other jurisdictions
that off er similar licensing privileges to residents of North
application; and (3) constituted the entire state-approved prelicense education program in that state.
Required Documentation:
Original course completion certifi cate or transcript showing course titles, dates and number of classroom hours, and
evidence that the course was an approved salesperson course in the other state.
An applicant (resident or nonresident) for licensure by examination with
substantial real estate education other than prelicensing courses and/or extensive
real estate experience may, in rare instances, be found by the Commission to pos-sess
real estate education and/or experience equivalent to the broker prelicense
course. Applicants bear the burden of satisfying the Commission that their edu-cation
and/or experience justifi es a course waiver. A substantial portion of the
qualifying education and/or experience must have been during the previous three years.
Examples:
Provided below are a few examples of qualifi cations the Commission has found suffi cient to justify waiver of the broker
prelicense course:
(1) Experience as a licensed attorney that focused primarily on handling real estate closings and related real estate
matters in North Carolina for the three years immediately preceding application. (Licensure as an attorney without
substantial real estate practice is not suffi cient.)
(2) Full-time, lawful experience selling new homes owned by a corporate homebuilder as a bonafi de employee of the
corporate homebuilder for three years immediately preceding application.
(3) In rare instances, very substantial experience in personally buying, developing and selling real estate (for example,
10-15 transactions per year over an eight-year period immediately preceding application).
Note: Lawful, unlicensed experience in property management or experience in specialized real estate related fi elds such
as appraisal, mortgage lending, investment, development or consulting will NOT, standing alone, be acceptable under this
option.
Required Documentation:
For equivalent real estate education, course descriptions and copies of transcripts or certifi cates if available. Otherwise,
list each course taken and provide dates and course descriptions. (Education documentation not required for attorneys.)
For equivalent real estate experience, provide a detailed description of all such experience including, for personal transac-tions,
a list or summary of all sales, purchase and rental transactions showing for each transaction (or category of transaction)
the type of property, transaction date, a description of the applicant’s role in the transaction and an indication of whether or
not a real estate agent was involved in the transaction.
An applicant who holds an active license in another state with which North
Carolina has a reciprocal licensing arrangement may qualify for licensure by
reciprocity (i.e., without examination) if they are a resident of the qualifying
reciprocal state or have moved to North Carolina from the qualifying recipro-cal
state within 90 days prior to application. Upon demonstrating satisfactory
moral character, an applicant licensed as a salesperson in the reciprocal state
will be issued a North Carolina provisional broker license, and an applicant li-censed
as a broker in the reciprocal state will be issued a North Carolina broker license that is NOT on provisional status. A
PERSON WHO HAS BEEN A NORTH CAROLINA RESIDENT FOR MORE THAN 90 DAYS CANNOT OBTAIN
A NORTH CAROLINA LICENSE BY RECIPROCITY.
Note: See the section on “Licensing by Reciprocity” in this booklet for more information.
s
rs
cc
Option #4
Education and/or Unlicensed
Experience in Real Estate Equiv-alent
to the Broker Prelicense
Course
Crr c
mw
d b k i h i l ill
Option #5
Licensure in Another State
With Which North Carolina has
Reciprocity
[Examination not required for
this option only.]
6 Real Estate Licensing in North Carolina
Carolina. Th e North Carolina Real Estate Commission will
accept applications for licensure by examination from resi-dents
of most other jurisdictions without any special restric-tions.
However, special requirements or restrictions may be
imposed on applying residents of a jurisdiction that imposes
special requirements or restrictions on North Carolina resi-dents
applying in that jurisdiction. As of the printing of this
booklet, special restrictions apply to residents of the juris-dictions
listed below.
Restrictions on Licensing Nonresidents by Examination
FLORIDA Residents — Due to restrictions applied by
Florida to North Carolina residents applying for licensure in
Florida, North Carolina will not recognize Florida real estate
licensure, education or brokerage experience when a Florida
resident applies for a North Carolina real estate license by
examination. To be found eligible to take the North Carolina
single license examination, the Florida resident (whether a FL
salesperson or broker or unlicensed) must either complete North
Carolina’s 75-hour real estate prelicensing course (only available
in NC) or qualify based on qualifi cations other than licensure,
education or brokerage experience in Florida (such as active li-censure
in a state other than Florida). Upon passing the North
Carolina license examination, the Florida resident would be is-sued
a North Carolina “provisional broker” license and would
have to satisfy the postlicensing education requirements to
remove the “provisional” status of the provisional broker li-cense
within the prescribed time period by choosing one of
the options available to nonresident licensees for this purpose
(see “Postlicensing Education for Provisional Brokers”).
TEXAS Residents – Texas does not issue salesperson li-censes
to residents of North Carolina or other jurisdictions.
Consequently, North Carolina will not issue a provisional
broker license to a resident of Texas. A Texas resident who
holds a broker license in Texas or another jurisdiction may,
however, qualify for a North Carolina broker license (NOT
on provisional status) by examination.
Consideration of Applicant’s Character
Requirement to Demonstrate Good Character. Every
applicant for a real estate license has the burden of prov-ing
that he or she is of good character and entitled to the
high regard and confi dence of the public. To enable the
Commission to render its decision regarding an applicant’s
character at the earliest possible time, the applicant should
submit with his or her application form all the information
required in questions 16-18 on the application form relating
to criminal off enses (including serious traffi c off enses), pro-fessional
licensure disciplinary actions and liens/unpaid
judgments. Full disclosure and explanation of every problem
relating to these matters is expected and highly recommended!
Nondisclosure of such information will only increase an ap-plicant’s
burden of proving his or her truthfulness, honesty
and integrity.
Criminal Record Report Requirement. Every appli-cant,
including those seeking to reinstate an expired, re-voked
or surrendered license, must obtain and submit with
his or her application a criminal record report as described
in the subsequent section on “Criminal Record Report Re-quirement”
under “Application Process.”
What Is a “Character Issue?” Any person who has a
criminal record report showing a criminal conviction (includ-ing
any serious traffi c off ense, especially DWI) or who answers
(or should have answered) “Yes” to any one of questions 16-18
on the license application relating to criminal off enses, profes-sional
licensure disciplinary actions and liens/unpaid judg-ments
is considered to have a “character issue,” although it
should be noted that the Commission may also consider any
other information that refl ects on an applicant’s character
and reputation.
Procedures for Applicants with Character Issues.
Consideration of an application involving any “character issue”
takes place only after the applicant has passed the license exami-nation
or otherwise satisfi ed all license qualifi cation require-ments
other than that of demonstrating good character. At
that point, an application involving a character issue is evalu-ated
by the Commission’s Executive Director and License
Application Analyst and, if necessary, the Commission itself
at the next monthly Commission meeting following the ap-plicant’s
passing the examination, and the applicant is then
notifi ed in writing of the Commission’s decision.
Applicants who have a “character issue” (see above
defi nition) in connection with their application should
allow the Commission 45 days after passing the license
examination to complete its evaluation before inquiring
about the status of their application. In evaluating an ap-plicant
who has a “character issue,” the Commission consid-ers
all information that may come to its attention regarding
the applicant’s character and reputation. An inquiry may be
made by the Commission to obtain additional information
about matters relating to an applicant’s character. Th is may
include further search of criminal and civil records and/or a
credit report. Th e Commission also may request additional
information from the applicant.
At any point during the process of considering character
issues related to an applicant that the Commission deter-mines
the applicant possesses the requisite good character,
the applicant’s license will be promptly issued.
If the Commission determines that an applicant has NOT
affi rmatively demonstrated that he or she possesses the requi-site
truthfulness, honesty and integrity for licensure, then ac-tion
will be deferred on the application. Th e applicant will be
advised of his or her right to request a formal hearing before the
Commission on this matter and that failure to request such a
hearing within 60 days will constitute a waiver of the right to
a hearing and will result in the application being denied. In
some instances, the applicant may be off ered the opportunity
for an informal conference with a delegation of Commission
members and staff to discuss the character issues in question
Real Estate Licensing in North Carolina 7
before a determination is made by the Commission. Also, in
instances where an applicant has a pending criminal charge
or other pending matter that relates to his or her character,
the Commission may postpone further consideration of the
application until the pending matter is resolved.
Applicant Check through National Real Estate Li-cense
Disciplinary Data Base. Information on all appli-cants,
including those seeking licensure by reciprocity or
reinstatement, will be submitted to a national real estate
license disciplinary action data bank operated by the Asso-ciation
of Real Estate License Law Offi cials to determine if
the applicant has (1) had a real estate license revoked or sus-pended
in another state or has been otherwise disciplined in
another state; (2) had a criminal conviction or civil injunc-tion
imposed for engaging in real estate activity without the
required license; or (3) had a real estate license denied due
to matters relating to character.
APPLICATION PROCESS
Obtaining a License by Examination
Following is an overview of the process for obtaining a
real estate license by examination:
(1) Prospective applicant completes required real estate
prelicense course or otherwise satisfi es license
qualifi cation requirements.
(2) License application, fee and required documentation
fi led with Commission.
(3) Application reviewed to determine applicant’s
eligibility for the license examination.
(a) If the application is complete and the applicant
is qualifi ed, the Commission sends a notice of
examination eligibility within 4-5 working
days of application receipt and the applicant
then contacts the testing service to pay the
examination fee and to schedule taking the
examination by computer.
(b) If the applicant is not qualifi ed or if the
application is incomplete, the application is
canceled and is returned to the applicant along
with the application fee.
(4) Applicant takes the license examination.
(5) If applicant fails the license examination, he or she
may reschedule and retake the examination.
(6) If applicant passes the license examination:
(a) If there are no issues relating to the applicant’s
character, his or her license is promptly issued
and should be received in the mail within
seven days of the examination date.
(b) If there is some issue relating to the applicant’s
character, the application is reviewed by
Commission staff and may be referred to the
Commission for further consideration as to
whether the applicant has the good character
necessary for licensure. Th is process may
become quite lengthy. See the preceding
discussion of “Consideration of Applicant’s
Character” under “License Qualifi cation
Requirements.”
Timeframe for Obtaining a License by
Examination
To complete the entire application-examination-licens-ing
process usually requires approximately three (3) weeks
after application fi ling for qualifi ed applicants who fi le com-plete
applications, who schedule the examination promptly
after receiving notice of application acceptance, who pass
the examination on their fi rst attempt and who have no
character issues.
Completing the Application Form
Any person wishing to obtain an individual real estate
license, whether by examination or on another basis, must
complete and fi le with the Real Estate Commission the
Application for Real Estate License form contained in this
booklet. Th e same application form is used to apply for a
broker license by examination, for a license based on reci-procity,
or for reinstatement of an expired, revoked or sur-rendered
license.
Only an original application form from this
booklet or the Commission offi ce may be used to
fi le an application. You may NOT use a COPY of
this application form to fi le an application and the
application may NOT be fi led by FAX.
Applicants are cautioned to carefully read and follow the
instructions on the application form and in this booklet.
Failure to properly complete this form and submit all re-quired
attachments will result in cancellation and return of
the application and delay in taking the license examination
and/or obtaining a license. Several points to especially re-member
are noted below:
Print clearly using BLACK ink. Your application must
be legible, so print clearly in black ink. Page 2 of the appli-cation
must be scanned using an electronic scanner — thus
it is very important that you place one letter or number in
each box and skip a box between words, names, etc.
Legal Name. Enter in Item #2 your true legal name,
including your full fi rst and middle names. Include on the
line with your last name any applicable suffi x (Jr, III, etc.).
Do not enter a nickname or an initial. Your legal name is
the name you were given at birth or subsequently acquired
through marriage, court order or adoption, and, should be
the name that appears on your driver license (driver license
may show middle initial rather than full middle name). If
your current legal fi rst and last names do not appear on your
8 Real Estate Licensing in North Carolina
driver license, you should have your driver license reissued
in your current legal name to avoid identifi cation problems
when you appear for your real estate license examination.
Social Security Number. Providing your social security
number is MANDATORY, not optional. Th e Commission is
required by law to collect your social security number but also
to protect the number from public access and improper disclo-sure.
Your social security number is not “public information”
and may only be disclosed as authorized by law.
School, Instructor and Course Information. If you
are applying to take the examination, enter the school code
number, instructor code number and course completion
date of your Broker Prelicense Course in Item #10. Th is
information is on your course completion certifi cate. If you
did not complete a Broker Prelicense Course in North Caro-lina,
leave this item blank.
First-time Exam Takers. If you have never previously
taken the North Carolina real estate license examination
and this will be your fi rst time taking the examination,
blacken the “Yes” circle in Item #11. Otherwise, blacken
the “No” circle. If you are an applicant for a reciprocal
license, or if you are applying for license reinstatement and
you are not required to pass the examination, leave this
item blank.
Places of Residence. In Item #14, list all places you
have resided during the past seven (7) years, beginning
with your current address and working backwards in time.
If you fail to account for your residency for any period of
time within the past seven years, your application will be
considered incomplete and will be returned to you. Enclose
an additional sheet if needed.
Employment History. In Item #15, describe all employ-ment
for the past three (3) years, including self-employment
or work as an independent contractor. List present employ-ment
fi rst and indicate “None” for any period you were not
employed. Enclose an additional sheet if needed.
Criminal Off enses, Professional License Disciplinary
Actions and Liens or Unpaid Judgments. Th e three ques-tions
asked by Items #16-18 relate to matters that may aff ect
the Commission’s determination as to whether you possess
the requisite “Character” for licensure. It is extremely impor-tant
that you honestly answer these questions and provide all the
required explanations and documentation as described on the
application form. Failure to disclose a matter relating to your
character is a separate character issue that may be considered in
addition to the underlying off ense or issue. Failure to answer or
provide all required information will result in your application
being returned or in an application processing delay.
Signature. Don’t forget to sign and date the application.
When signing an application, the applicant certifi es that all
information provided in connection with the application is
accurate and complete. Any omission, inaccuracy, or failure
to make full disclosure in the application may be deemed suf-fi
cient reason to deny permission to take an examination, to
deny license issuance, or to revoke a license after issuance.
Application Enclosures
In addition to properly completing the application form,
the applicant must enclose:
1. Course Completion Certificate(s) or other
documentation of qualifi cations (See “License
Qualifi cation Options” under “License Qualifi cation
Requirements”);
2. Application Fee. Th e application fee for an original
broker license is $30.00 ($55 for reinstatement of a
license expired for more than six months) and must
be paid by either cashiers check, certifi ed check,
or money order. If two or more applications are
submitted in the same envelope, separate checks
or money orders must be submitted with each
application.
THE COMMISSION DOES NOT ACCEPT CASH,
PERSONAL CHECKS OR COMPANY CHECKS FOR
THE APPLICATION FEE.
Commission rules provide that once an application has
been fi led and processed by the Commission, the applica-tion
fee may not be refunded.
3. Criminal Record Report as described in the instruc-tions
on the license application form and under
“Criminal Record Report Requirement” below;
4. Character Information. All the required informa-tion
described in a. - c. below when an applicant
answers “Yes” (or should answer “Yes”) to the items
on the application form relating to criminal off ens-es,
professional license disciplinary actions or liens/
judgments;
a. Criminal Off enses: Submit a detailed written
explanation in your own words describing the
circumstances surrounding each off ense/pend-ing
charge and addressing why you think you
should be licensed in spite of the off ense(s).
Also, submit a copy of the court judgment for
any conviction (or arrest warrant or bill of in-dictment
for any pending charge) not shown
on your criminal record report.
b. Professional License Disciplinary Action:
Submit a detailed written explanation in your
own words describing the circumstances sur-rounding
each action (or pending complaint)
and addressing why you think you should be
licensed in spite of the action. Also, submit a
copy of the licensing agency’s order or pend-ing
complaint.
c. Liens or Judgments: Submit a detailed written
explanation in your own words describing the cir-cumstances
surrounding each outstanding lien or
unpaid judgment resulting from your failure to
pay a debt, your eff orts to pay the debt, the name
Real Estate Licensing in North Carolina 9
of the judgment creditor or lien holder (i.e., the
party you owe), the amount and date of the judg-ment
and lien, and the current balance. Also, ad-dress
why you think you should be licensed in
spite of the outstanding lien(s) or judgment(s).
5. If applicable, a certifi cation of license history (origi-nal)
issued within the last six (6) months by the ap-propriate
state licensing agency for each state where
you have held a real estate license within the past fi ve
(5) years; and
6. All additional information required for nonresident
applicants (See the “Nonresident Supplement to
the Application for Real Estate License” in the back
of this booklet).
Criminal Record Report Requirement
You must obtain a criminal record report from the agency
listed below and submit such report with your application. A
report prepared by this agency within the previous six months
is the only report acceptable to the Commission.
Carolina Investigative Research, Inc. (CIR)
Telephone: (919) 460-7799
Website: www.cir-ncrec.com
Th e criminal record report must include the results from
a search of criminal records in the state and/or county of
each diff erent place where you have resided during the past sev-en
years and the search will be conducted for each diff erent
name you have used during that period. CIR’s report will
show all felony and misdemeanor convictions (including most
traffi c convictions) on record for an applicant, not just those
that occurred in the past seven years. CIR is authorized by
the Commission to collect from you all personal informa-tion
necessary to conduct records searches and to charge a
separate fee for (1) collecting and verifying personal data,
(2) each state or county record searched and (3) each addi-tional
name for which a search is conducted. Th us, the cost
of obtaining the criminal record report will vary depending
on the number of diff erent places you have resided and/or
diff erent names you have used during the past seven years.
NOTE: Th e cost of a criminal records search in some other
states (notably New York) may be substantial.
A criminal record report involving only a search of North
Carolina records will typically be provided within 2-4 business
days of placing the order. Most reports involving a search of out-of-
state records will be provided in 5-7 business days. Searches
of records in a few states will require more time.
Application Filing
• Use the return envelope provided in this booklet.
• Do not fold the application form.
• Include all required enclosures.
• Note that EXTRA POSTAGE is required for all
mailed applications, regardless of weight.
Updating Application Information
An applicant is required to notify the Commission if any
information provided in connection with an application for
a North Carolina real estate license changes.
LICENSE EXAMINATION –
GENERAL INFORMATION
To qualify for a North Carolina real estate license, most
applicants must pass the real estate license examination.
Th e license examination tests the applicant’s knowledge and
understanding of subject matter that has been determined
by an advisory committee of real estate practitioners and the
Commission to be essential to practicing real estate broker-age
in North Carolina in a manner that protects real estate
consumers. Th e examination is an entry-level examination
designed to determine if an applicant is minimally compe-tent
to practice real estate brokerage.
Th e only persons who are not required to pass the license
examination are (1) residents of other states who are apply-ing
for nonresident North Carolina licenses by reciprocity
(see the LICENSING BY RECIPROCITY section of this
booklet) and (2) some applicants for license reinstatement
(see LICENSE REINSTATEMENT)
How Examination is Administered
Th e real estate license examination is administered for the
Commission by PSI Services, a professional testing service,
under a contract with the Commission to schedule and ad-minister
the license examination for qualifi ed license appli-cants.
Applicants take the license examination by computer
at specially equipped testing centers. Each applicant is seated
at a semi-private workstation in a room dedicated to testing.
Th e testing room accommodates a maximum of 12 test takers
and is monitored by one or more examination proctors. Th e
testing room may also be under video surveillance for purposes
of examination security. Th e testing equipment is easy to use
and does not require previous computer experience or typing
skill. Th e applicant responds to the test questions that appear
on the computer monitor by pressing a key on the computer
keyboard to indicate his or her answer choice or by selecting an
answer choice using a computer mouse. During the untimed
tutorial that immediately precedes the license examination,
applicants will have the opportunity to become comfortable
using the computer.
10 Real Estate Licensing in North Carolina
Preparing for the Examination
Th e best preparation for the real estate license examina-tion
is to complete a Commission-approved real estate Bro-ker
Prelicense Course. A vast majority of applicants will
have done this in order to qualify for the licensing exami-nation.
For applicants who are qualifying on a basis other
than completing a North Carolina broker prelicense course,
or who want to undertake additional study prior to taking
the license examination, you may contact an approved pre-licensing
school to request information concerning current
prelicense course textbooks or study materials. A list of ap-proved
prelicensing schools is provided on the Commission’s
website at www.ncrec.state.nc.us.
Examination Question Formats
All questions on the licensing examination are multiple-choice
questions that require the applicant to choose the
correct or best answer from the alternate answer choices
provided. Two types of multiple-choice question formats
are used on the licensing examination: (1) the “basic four-choice”
format and (2) the “Roman numeral” format. Th ese
two formats are discussed and illustrated below.
Th e Basic Four-Choice Format: Th is basic or standard
multiple-choice question format involves a question or incom-plete
statement that is followed by four possible numbered al-ternatives.
Examples 1-3 below illustrate this format.
Example 1
Th e primary body of law governing the relationship be-tween
a seller of real estate and the broker with whom the
seller lists his/her property is known as the
(1) Statute of Frauds
(2) Law of Conveyancing
(3) Statute of Limitations
(4) Law of Agency
Answer: 4
Example 2
A broker with ABC Realty listed an owner’s property
at $150,000 and the property was subsequently sold by a
salesperson with XYZ Realty for $140,000. If the brokerage
commission was 5% of the sale price and was to be divid-ed
equally between the two fi rms, and if the selling agent’s
share was 60% of his/her fi rm’s share, how much did the
salesperson earn on the sale?
(1) $1,400
(2) $2,100
(3) $3,500
(4) $4,200
Answer: 2
Example 3
All of the following are associated with the cost approach
to estimating the value of an improved property EXCEPT
(1) Replacement Cost
(2) Depreciation
(3) Net Operating Cost
(4) Lot Value
Answer: 3
Th e Roman Numeral Format: Th e Roman numeral
format is merely a variation of the basic four-choice format.
Th is format involves a question or incomplete statement fol-lowed
by two possible responses labeled with Roman nu-merals.
Th ese are followed by the four numbered alternative
answer choices. Examples 1-2 below illustrate this format.
Example 1
A valid real estate sales contract must contain
I. an adequate property description.
II. the sale price of the property.
(1) I only
(2) II only
(3) Both I and II
(4) Neither I nor II
Answer 3
Example 2
Which of the following statements regarding condomin-iums
is true?
I. Unit ownership is transferred by deed.
II. Unit owners are stockholders in the corporation that
owns the condominium complex.
(1) I only
(2) II only
(3) Both I and II
(4) Neither I nor II
Answer 1
Examination Topics
Based on a comprehensive real estate licensee job anal-ysis,
an advisory committee of North Carolina real estate
experts and the North Carolina Real Estate Commission de-termined
the topics covered on the North Carolina real es-tate
license examination. All these topics are covered in the
Commission-approved real estate Broker Prelicense Course.
Th e topics listed below are subject to testing:
Real Estate Licensing in North Carolina 11
1. REAL ESTATE LAW AND BROKERAGE
PRACTICE
A. Property Ownership and Interests
Property Defi nitions and Classifi cations; Fixtures;
Manufactured Homes (requirements for becom-ing
real property); Freehold Estates; Severalty and
Concurrent Property Ownership; Encumbrances
(Liens, Easements, etc.); Riparian, Air and Subsur-face
Rights; Real Property Taxation and Special As-sessments.
B. Transfer of Title to Real Property
Methods of Transferring Title; Deeds (Essential
Elements, Types and Characteristics); Excise Tax;
Title Examination; Title Insurance; Recordation of
Property Interests; Property Description.
C. Closing Real Estate Transactions
Preliminaries to Closing; Items Required at Clos-ing;
Closing Procedures; Closing Statements (espe-cially
HUD-1 Form); Real Estate Settlement Proce-dures
Act (RESPA).
D. Land Use Controls
Public Land Use Controls (all types), especially
Zoning (Concepts, Terminology, Authority, Pur-poses,
and Procedures); Subdivision Statutes/Regu-lations;
Protective Covenants; Interstate Land Sales
Disclosure Act; Flood Hazard Area Regulations and
Insurance.
E. Brokerage Relationships - Law and Practice
Basic Agency Concepts (Terminology, Classifi ca-tions,
Creation of Agency and Scope of Agent’s Au-thority);
Real Estate Agency Relationships; Duties
and Liabilities of Principals and Real Estate Agents.
F. Basic Contract Law
Basic Concepts, Terminology, and Classifi ca-tions;
Legal Requirements for a Contract; Statute
of Frauds; Discharge & Assignment of Contracts;
Contract Remedies.
G. Agency Contracts and Related Practices
Earning a Real Estate Commission; Agency Con-tract
Requirements and Types; Common Provi-sions
and Completion of Standard Forms; Listing
Practices; Residential Square Footage Guidelines,
Procedures for Buyer’s Agent; Cooperation among
Brokers.
H. Sales Contracts and Related Practices
Use, Provisions and Completion of N.C. Standard
Off er to Purchase and Contract Form, including
Standard Addenda; Rights and Obligations of Par-ties;
Off er, Acceptance and Counteroff er; Earnest
Money; Installment Land Contracts; Options to
Purchase.
I. Landlord and Tenant Law
Basic Concepts and Terminology; Nonfreehold Es-tates;
Laws Protecting Residential Tenants.
J. Leases and Property Management
Types and Characteristics of Leases; Essential and
Common Lease Provisions; Rights of Parties; Prop-erty
Management Contracts; Functions of Property
Managers.
2. MISCELLANEOUS TOPICS RELATED TO
REAL ESTATE
A. Laws Prohibiting Discrimination
Fair Housing (State and Federal Laws); Americans
with Disabilities Act.
B. Environmental Hazards, Laws and Regulations
Hazardous Substances and Wastes (Lead-Based
Paint, Asbestos, Radon, Oil and Chemicals) and
Related Federal/State Laws; State Laws Protecting/
Conserving Natural Resources, including N.C.
Coastal Area Management Act.
C. Residential Property Disclosure Statement
N.C. Residential Property Disclosure Act
D. Federal Income Tax Implications of Homeowner-ship
and Real Estate Investments
Basic Terminology; Homeowner Deductions; Sale
of Personal Residence; Operating Real Property
for Business or Income-Producing Purposes; Sale
of Business or Investment Real Estate; Installment
Sales; Like-Kind Exchanges; Special Rules on Vaca-tion
Homes and Offi ce in Home.
E. Property Insurance
Basic Concepts and Terminology; Homeowners’
Policies.
F. Residential Building Construction
Basic Wood-Frame Construction Methods and Ter-minology;
Architectural Styles; Heating/Air Condi-tioning
Systems; Government Regulation.
3. N.C. REAL ESTATE LICENSE LAW,
COMMISSION RULES AND TRUST ACCOUNT
GUIDELINES
License Law Provisions Tested:
Article 1 (All sections)
Article 4 (Sections 93A-39 thru 93A-42, 93A-44,
93A-45, 93A-51, 93A-54, 93A-56,
and 93A-58.)
All other provisions of the License Law will NOT be
tested on the examination.
Commission Rule Provisions Tested:
Subchapter 58A (Sections .0100, .0500, .1600,
.1700, and 1900)
Subchapter 58B (Sections .0400 thru .0600)
12 Real Estate Licensing in North Carolina
All other provisions of the Commission Rules will NOT
be tested on the examinations.
A. Requirement for Licensure
Defi nitions; Activities Requiring a License; Exemp-tions.
B. Th e Real Estate Commission
Composition; Purpose and Powers.
C. General Licensing and Brokerage Provisions
Business Entities (Firms); License Renewal; Postli-censing
Education, Continuing Education; Active
and Inactive License Status; Expired License; Su-pervision
of Provisional Brokers by Brokers; Pay-ment
of License Fees; Proof of Licensure; Change of
Name or Address; Advertising; Delivery of Instru-ments;
Retention of Records; Broker-in-Charge;
Brokerage Fees and Compensation; Drafting Le-gal
Instruments; Sales Contract Forms; Reporting
Criminal Convictions; Agency Disclosure. (Agency
Agreements covered under 1.G; Designated Agency
covered under 1.E.)
D. Prohibited Acts
Disciplinary Actions (by Commission); Making
False Promises; Improper Brokerage Commissions;
Unworthiness and Incompetence; Improper, Fraud-ulent
or Dishonest Dealing; Practice of Law; Other
Prohibited Acts. (Misrepresentation and Omission
and Confl ict of Interest covered under 1.E.)
E. Handling and Accounting for Trust Funds
Defi nition of Trust Funds; Trust Accounts; Depos-iting
Trust Funds; Use and Disbursement of Trust
Funds; Recordkeeping and Accounting.
F. North Carolina Time Share Act
Project Registration; License Required (for time
share brokers); Defi nitions; Public Off ering State-ment;
Purchaser’s Right to Cancel; Escrow Require-ments;
Handling and Accounting of Funds and
Other Law/Rule provisions listed above.
4. REAL ESTATE FINANCE
A. Mortgages and Deeds of Trust
Basic Finance Concepts and Terminology; Th e
Mortgage Note and the Mortgage (Deed of Trust)
Instrument (Essential and Common Provisions);
Loan Payment Plans; Rights of Parties; Mortgage
Priorities; Sales of Properties with Existing Mort-gages.
B. Financing Methods
Conventional and “Government” Mortgage Loans,
including FHA, VA, Rural Development, Farm
Service Agency, and N.C. Housing Finance Agen-cy
(Characteristics, Major Programs and Payment
Plans, Qualifi cation Requirements); Other Types of
Mortgage Loans and Financing Methods.
C. Financing Practices and Legislation
Government Monetary Policy; Direct Sources of
Financing; Th e Secondary Mortgage Market; Loan
Qualifi cation Practices/Procedures; Federal Legisla-tion
(Truth-in-Lending Act and Others).
5. REAL ESTATE VALUATION (APPRAISAL)
A. Basic Valuation Concepts and Real Estate
Economics
Terminology; Concepts of Value; Forces and Fac-tors
Aff ecting Value; Economic Principles of Value;
Regulation of Appraisals.
B. Methodology (Appraisal Methods)
Th e Valuation Process (in General); Uniform Resi-dential
Appraisal Report (URAR); Terminology,
General Use, and Procedures associated with the
Sales Comparison, Cost and Income Approaches;
Comparative Market Analysis (CMA).
6. REAL ESTATE MATHEMATICS
A. Finance Calculations
Principal and Simple Interest; Monthly Loan Pay-ment;
Total Interest over Life of Loan; Debt Re-duction;
Loan Fees; Points; Discount; Yield; Loan
Value; Loan-to-Value Ratio; Qualifying a Buyer.
B. Appraisal Calculations
Calculations related to Sales Comparison Approach
and Income Capitalization Approach.
C. Miscellaneous Calculations
Brokerage Commissions; Sale Price/Rental Amount
Needed to Provide Specifi ed Net to Seller/Landlord;
Profi t/Loss on Sale of Real Estate; Equity; Area;
Real Estate Taxes; Special Assessments; Calculation
of Excise Tax; Federal Income Taxation of Home
Ownership and Sale of Home.
D. Closing Statement Prorations/Calculations
Miscellaneous Prorations and Other Calculations;
Separate Sellers’ and Buyers��� Closing Statement
Problems.
E. Complete Closing Statement Problem
Th is requires applicants to perform multiple cal-culations
and answer several questions based on
the information provided to the applicant. Th is
problem may be presented in various formats and
may require applicants to utilize a provided blank
HUD-1 Settlement Statement form in order to an-swer
the questions.
Examination Forms
Th e Real Estate Commission utilizes several diff erent
forms of the examination simultaneously and also changes
these forms regularly. Th us, when more than one candidate
is being tested at an exam center, it is likely that the can-didates
will be taking diff erent forms of the examination.
In addition, a candidate who fails the examination is given
a diff erent examination form when he/she retakes the ex-
Real Estate Licensing in North Carolina 13
amination. While each form of the examination contains
mostly diff erent individual questions, the topics tested are
the same on each form and each examination form is of
equal diffi culty.
Number and Value of Questions
Th e examination consists of 115 questions. Only 110 of
the questions will be scored. Five of the 115 questions are
pretest questions (new unscored questions) that are placed
randomly within the examination. All scored questions have
equal value.
Pretest questions are included to gather performance
data on new questions in order that the Commission can
determine if the new questions are appropriate to be used as
scored questions on future examinations. Results of pretest
questions will be reported only to the Commission and will
be excluded from scoring of the 110 questions that deter-mine
whether the candidate passes the examination. Pretest
questions may appear in various sections of the exam, and
candidates will not be able to distinguish pretest items from
the questions that will be scored.
Th e examination is divided into six sections as shown
below. Th e number of questions in each of the six examina-tion
sections may vary within the ranges shown below for
any particular examination, but the total number of scored
questions will always be 110.
Section Number of
Scored Questions
Real Estate Law and Bro-kerage
Practice
40 - 48
Miscellaneous Topics Re-lated
to Real Estate
9 - 13
N.C. Real Estate License
Law, Commission Rules
and Trust Account Guide-lines
9 - 13
Real Estate Finance 12 - 16
Real Estate Valuation (Ap-praisal)
8 - 12
Real Estate Mathematics 17 - 23
TOTAL 110
Passing Requirement: In order to pass the real
estate licensing examination applicants must at-tain
a score of at least 75%, which means that 82 of
the 110 scored questions must be answered cor-rectly.
Helpful Hints
Pace yourself. Read each question very carefully, but do
not spend too much time on any one question. Th e ques-tions
involving “Real Estate Mathematics” (last section of
examination) will require more of an applicant’s time than
other questions, so allow plenty of time for that section of
the examination. If you are stumped by a particular ques-tion,
mark it for later review and go on with your examina-tion;
then return to your marked “problem questions” after
you have answered the other questions. If uncertain as to
the correct answer, make an educated guess; a question left
blank will be automatically scored as incorrect.
SCHEDULING AN EXAMINATION
Applying for Examination
As described in the earlier APPLICATION PROCESS
section, a license applicant must fi rst fi le an application to
the North Carolina Real Estate Commission and be found
qualifi ed to take the examination.
IMPORTANT NOTE: See the APPLICATION
PROCESS section at the beginning of this book-let.
Notice of Examination Eligibility Valid
for 180 Days
If the Commission determines that you meet the quali-fi
cation requirements, you will be issued a “Notice of Ex-amination
Eligibility” valid for 180 calendar days from the
date it is issued. Your examination eligibility expiration date
will be prominently indicated on the notice. Your notice
of examination eligibility is valid for taking the exami-nation
ONE time only (See the Expedited Reapplication
and Exam Rescheduling subsection of this booklet for
information about re-applying for a subsequent exami-nation).
If your application is complete, every eff ort will be made
to mail your notice of examination eligibility to you within
5-7 business days after receipt of your application by the
Commission. Remember that it may take 2-3 business days
for your application to reach the Commission and 2-3 busi-ness
days for the notice of examination eligibility to reach
you. Th e amount of time required to process applications
varies with the volume of applications, so please allow at
least 10 business days after mailing your application to the
Commission before you call to check on the status of your
application.
To be scheduled for examination, you must contact PSI
after receiving your notice of examination eligibility. (See
the Making an Examination Appointment subsection of this
booklet.) Walk-in testing is not available.
14 Real Estate Licensing in North Carolina
You should schedule your examination promptly after
receiving your notice of examination eligibility. You must
take the examination on or before a business day prior to the
expiration of your 180-day period of examination eligibility.
Th e 180-day period of examination eligibility will NOT be
extended for any reason. DO NOT DELAY SCHEDUL-ING
YOUR EXAMINATION UNTIL YOUR 180-DAY
PERIOD IS NEARLY OVER.
Th e 180-day period is intended to accommodate appli-cant
preferences in scheduling examinations and emergen-cies
that may arise soon after being scheduled for an exami-nation.
If you wait until the 180-day period is nearly over to
schedule your examination, PSI may not be able to schedule
you for examination on a date and at a location that is con-venient
for you, and you may even risk forfeiture of applica-tion
and examination fees.
Examination Fee
A separate $66 examination fee is required in addi-tion
to the $30 license application fee. Th e $66 exami-nation
fee is payable directly to PSI when the applicant
contacts PSI to schedule his/her examination. Do NOT
submit the $66 fee to the Real Estate Commission. Pay-ment
may be made by credit card at the time you contact
PSI by telephone or online to schedule your examination,
or payment may be made to PSI in advance by mail. Once
paid, this examination fee is nonrefundable. (See important
payment instructions in the Making an Examination Ap-pointment
subsection of this booklet.)
Examination Center Locations
You may select an exam center subject to availability
when you contact PSI to schedule an examination. PSI op-erates
exam centers for administering the North Carolina
real estate license examination in the following cities:
Asheville Charlotte Fayetteville Greenville
Raleigh Virginia
Beach, VA
Wilmington Winston-
Salem
Tests are given only at these locations. Out-of-state
testing is not permitted except at Virginia Beach, VA.
Days of Operation: PSI exam centers will operate
on most weekdays and Saturdays (other than on holiday
weekends) depending on demand. Examinations are ad-ministered
in the mornings at all sites and in the after-noons
at some sites depending on demand.
Making an Examination Appointment
Applicants have the option of scheduling an examina-tion
with PSI, using a VISA or MasterCard, either online
or by telephone. Th e examination fee must be paid at the
time of reservation. Examination fees are non-refundable
and non-transferable, except as detailed in the Postponing
an Examination Appointment subsection of this booklet. Ap-plicants
who cannot or do not wish to use a credit card to
pay the examination fee may pay the fee by mail and then
use the telephone or online systems to actually schedule the
examination. Paying by mail will, however, require an addi-tional
one to two weeks for processing before the applicant
can actually schedule an examination.
When scheduling by telephone or online, you may
schedule your examination as early as two working days af-ter
you call if space is available at the exam center of your
choice and you have not previously taken the examination.
In almost all cases you will be able to take an examination
at the exam center of your choice within 7 calendar days of
calling PSI unless you request a later appointment or have
previously taken the examination. (For scheduling a second
or subsequent examination, see the Expedited Reapplication
and Exam Rescheduling subsection of this booklet.)
Preparing to Contact PSI
When scheduling by telephone or online, you will need
to do the following before you contact PSI:
1. Have your social security number available.
2. Have your VISA or MasterCard available.
3. Have your ‘Notice of Examination Eligibility”
available.
4. Have a calendar available and plan alternative exam
appointment dates. PSI will make every eff ort to
schedule the exam center location and date that is
most convenient for you, but you may need a couple
of alternative dates selected in advance.
5. Be sure you are ready to schedule your examina-tion
date when you contact PSI. Once paid (i.e.,
once your credit card is charged for the examination
fee by PSI’s online or telephone registration system),
an examination fee is NOT REFUNDABLE and
credit for the fee may not be transferred to an-other
person.
Scheduling Online
www.psiexams.com
Contact the PSI website at www.psiexams.com and fol-low
the instructions to pay the examination fee and sched-ule
your examination.
Real Estate Licensing in North Carolina 15
Scheduling By Telephone
Call 1-800-733-9267
[1-800-RE-EXAMS]
You may schedule an examination by calling PSI at the
above number 24 hours a day, 7 days a week and using PSI’s
automated voice response system. You should be able to fol-low
the instructions to pay the nonrefundable examination
fee and schedule your examination using the automated sys-tem.
If you need assistance of any kind from a customer ser-vices
representative, call Monday through Friday, between
7:30 a.m. and 8:00 p.m. and Saturday, between 11:00 am
and 5:00 pm, Eastern time. A PSI registrar will ask you for
information on your “Notice of Examination Eligibility”
form and will schedule your appointment.
After you have made your appointment, you may call
PSI’s automated response system again at any time to verify
your examination appointment or to receive directions to
the examination center.
Sending Examination Fee by Mail
(Scheduling by Telephone or Online)
If you would prefer to register and make your examina-tion
fee payment to PSI by cashier’s check, money order or
company check, you may do so by mail after you receive
your Notice of Examination Eligibility from the Real Estate
Commission.
Be sure to include all of the following with your written
registration request to PSI, taking care to write clearly and
legibly:
• Your name and social security number (applicant
identifi cation number) exactly as they appear on
your Notice of Examination Eligibility;
• Your mailing address;
• Your daytime and evening phone numbers (with
area code);
• A money order, company check or cashier’s check
payable to PSI in the amount of $66 with your social
security number (applicant identifi cation number)
from your “Notice of Examination Eligibility” print-ed
clearly on your check or money order to assure
that your payment is properly assigned.
Mail the required information and your examination fee
payment to:
PSI Services
3210 East Tropicana Avenue
Las Vegas, Nevada 89121
CASH, PERSONAL CHECKS, MASTERCARD, OR
VISA ARE NOT ACCEPTED BY MAIL.
Upon receipt of the required information and examina-tion
fee payment, PSI will send you a confi rmation notice
and you will be able to schedule your examination via PSI’s
automated telephone system (or online when that system is
available). Be sure to allow at least two weeks for process-ing
of your registration and fee. If you do not receive your
confi rmation notice from PSI within two weeks, call (800)
733-9267 to verify your status.
Special Examination Accommodations
Persons with a disability (physical or mental impair-ment)
that substantially limits their ability to take the ex-amination
in the normal manner (by computer) or under
normal testing conditions may request appropriate special
accommodations in testing method or procedure. “Physi-cal
impairment” warranting special accommodation may be
any of a broad range of physiological disorders or condi-tions.
“Mental impairment” may be any of a broad range
of mental or psychological disorders or conditions. Docu-mentation
of the disability in the form of a signed statement
from an appropriate professional will be required in order to
obtain the special accommodation. Also, the accommoda-tion
requested must be reasonable and appropriate for the
particular disability. A few examples of special accommoda-tions
are: extended time (for a person with a learning dis-ability);
a large print paper and pencil examination for a vi-sually
impaired person; and additional breaks (for a person
with low blood sugar levels).
Persons wanting to request a special examina-tion
accommodation based on a disability must
do so on a “Request for Special Examination Ac-commodation”
form available from the Commis-sion
Offi ce. The completed request form should
be fi led, if possible, with the license application
and must be received in the Commission Offi ce at
least 30 days prior to expiration of the applicant’s
examination eligibility period and before the ap-plicant
schedules a testing date with PSI. Upon
receipt of the completed request form, the request
will be promptly reviewed and the applicant will be
contacted to discuss whether the requested ac-commodation
can be provided.
TAKING THE LICENSE
EXAMINATION
Reporting to Examination Center
Applicants will be advised by PSI of the time to report
for their examination when they schedule a date with PSI to
take their examination. PSI holds most examinations in the
morning, but may schedule afternoon examinations at some
16 Real Estate Licensing in North Carolina
centers if demand makes this necessary. It is very important
that applicants allow plenty of extra time to deal with traffi c
delays and still arrive at the center on time. Make a note of
the reporting time and DO NOT BE LATE! Late arrival
will result in forfeiture of both your application and exami-nation
fees. (See Forfeiture of Fees in the OTHER EXAMI-NATION
INFORMATION section of this booklet.)
Exam Center Addresses and Directions
Note: Th e following directions are intended to sup-plement
but not substitute for current street/road maps.
Retail establishments cited as landmarks may be subject
to change. If you are unfamiliar with the specifi c area
and location of your test center, be sure to consult a reli-able
map.
ASHEVILLE
1306 C Patton Avenue
Asheville, NC 28806
From I-40 take exit 44, Smokey Park Highway (US
19/23), and turn left. Proceed north/east approx 3 miles.
(Th e test center is in a multi-building complex between
Haywood Rd and Druid). Turn right onto Haywood Rd
at intersection of Patton (19/23) and Haywood Rd. (Swan-nanoa
Cleaners on right.) Proceed approximately 0.2 miles
and turn left onto Parkwood. Follow building numbers to
1306 –approximately the fi fth building complex on right,
past the BB&T bank.
From I-240 exit 3A to 19/23 (Patton Ave) and proceed
south approx 2 miles. (Th e test center is in a multi-building
complex between Druid and Haywood Rd.) Take a left onto
Druid (Burger King is on the left), then fi rst right. Continue
past post offi ce, proceed after the stop sign and take fi rst left
into parking lot of building #1306.
CHARLOTTE
Tyvola Executive Park I
5701 Westpark Dr. #202
Charlotte, NC 28217
From I-77S towards Columbia, exit Tyvola Road (Exit
#5). Turn left at Tyvola Road. Make a right at Westpark
Dr.
From I-77N, exit Tyvola Road (Exit #5). Bear right at
Tyvola Road. Turn right at Westpark Dr.
FAYETTEVILLE
3724 Sycamore Dairy Road, Suite 128
Arbor Alley Building
Fayetteville, NC 28303
From the north, take I-95 South. Merge onto US 301/I-
95 Business Route South towards Fayetteville/Fort Bragg/
Pope AFB. Turn right onto NC-210/NC 24 Grove St.
which becomes Rowan St. From Rowan St., turn right onto
Bragg Blvd. Turn left onto Sycamore Dairy Road. Th e test
center is on the right of the Arbor Alley strip mall on the
north side (between Pricilia’s and the ABC store).
From the south, take I-95 North to NC 24 West. NC
24 West becomes Bragg Blvd. (See above directions to test
center from Bragg Blvd.)
From the northwest, take NC-87 South to NC-24 E/
Bragg Blvd. Continue on NC-24 E/Bragg Blvd beyond the
intersection with Hwy 401 Bypass. Turn right onto Bargain
Street and proceed to Sycamore Dairy Road.
From the southwest, take US 401 North and turn left
onto 401 Bypass (Skibo Road). Continue on 401 Bypass/
Skibo Road. Turn right onto Legend Ave; turn left onto
Sycamore Dairy Road. Th e test center is on the left of the
Arbor Alley strip mall on the north side (Between Pricilia’s
and the ABC store).
GREENVILLE, NC
Charles Center
2404 South Charles Blvd., Suite B
Greenville, NC 27858
From the south, proceed north on State Highway 11,
and merge to the right onto Greenville Blvd SE (US264/
State 43). Turn right on Charles Blvd.
From the east, proceed west on US 264 and turn left
onto Greenville Blvd SE. Turn left on Charles Blvd.
From the west, proceed east on US 264. Turn right on
Memorial Drive. Turn left on Greenville Blvd. Turn right
on Charles Blvd.
RALEIGH
5711 Six Forks Road, Suite 208
Raleigh, NC 27609
From I-440, exit Six Forks Road ( Exit #8) and proceed
north. Turn left on Loft Lane, then right into the fi rst drive-way.
Real Estate Licensing in North Carolina 17
VIRGINA BEACH, VA
Pembroke IV Building
291 Independence Blvd, Suite 140
Virginia Beach, VA 23462
From I-264, merge onto S. Independence Blvd/VA-225
N via Exit 17B toward Pembroke Area. Make a u-turn at
Broad St. onto Independence Blvd/VA-225 S. Th e site is
near the Pembroke Mall.
WILMINGTON
Judge’s Road Business Park
311 Judge’s Road, Suite 8D
Wilmington, NC 28405
When Interstate 40 ends, it merges with State Highway
132 (College Road). Exit Market Street (Highway 17) and
proceed northeast toward Jacksonville, approximately 1
mile. Turn left at Judge’s Road. As you approach Judge’s
Road Business Park, you will see a dozen brick buildings
housing industrial units. Turn left into the Business Park
and proceed to the third aisle. Turn right down the aisle
for Building 8. Suite 8D is on the left. Overfl ow parking is
available on the street.
WINSTON-SALEM
1540 Westbrook Plaza Drive, Suite 103
Winston-Salem, NC 27103
From Interstate 40, exit 189, Stratford Road and proceed
north (left) approximately 100 yards. Turn left on West-brook
Plaza Drive. Turn left at the four-way stop, continu-ing
on to Westbrook Plaza Drive. Continue straight after
the next traffi c light. Th e test center is approximately 1/4
mile past the light and on your left.
Required Identifi cation and Signature
You must provide two (2) forms of identifi cation at the
exam center when you arrive to take your examination. Both
must bear your signature. Th e primary form of identifi ca-tion
must be valid (current), government issued, (i.e. driver’s
license, state identifi cation card issued by North Carolina
Department of Motor Vehicles, passport, or military ID)
and must bear your legal name and photograph.
You must also provide a sample of your signature on the
sign-in list when you check in to take your examination.
Failure to provide required identifi cation and signature at
check-in will disqualify you from taking the examination.
NOTE: Your name as it appears on your two
required forms of identifi cation must be the same
as the name under which you applied for your real
estate license. No exceptions. If you recently
changed your name, or if your last name includes
a generation indicator (e.g., Jr., III), or is hyphenat-ed
or is a double last name, you should make sure
well in advance that you are prepared to comply
with this requirement. Proctors are not allowed
to admit for testing any candidate whose required
forms of identifi cation are not consistent with the
name on the license application.
If your primary photo ID (e.g., driver’s license) shows a
residence address in a state other than the one you provided
on your license application, the proctor will report this to
the Real Estate Commission for further inquiry in the event
the state of residence was an issue in connection with your
license qualifi cations.
Items to Bring and Prohibited Items
Applicants should wear soft-sole (quiet) shoes. In addition
to required identifi cation, applicants should also bring the
following items to the exam center:
• A calculator (See important restrictions below).
• A coat, sweater, or wrap of some kind (even during
summer months).
Note: PSI will provide scratch paper and pen-cils
to license applicants taking the examination.
In the testing area you may have with you only your wallet,
eye glasses (if needed), medications, personal hygiene items, a
calculator, and the materials provided by the exam proctor. Any
other items in your possession, including purses or pocketbooks,
must be left in (or returned to) your car. PSI’s examination
proctor will not hold personal items for you while you take the
examination and neither PSI nor the proctor will be responsible
for items you leave in the waiting room at the exam center. Do
not bring to the testing center any study materials or notes of
any kind, briefcases, bookbags, backpacks, totebags, large purses
or pocketbooks, scratch paper, tape recorders or players (includ-ing
MP3 players), pagers, PDAs, cellular telephones, cameras or
any other electronic communication, recording or photograph-ing
device.
Calculators: Calculators may be used in taking the exam-ination
if they are silent, hand-held, and either battery- or
solar-powered. Calculators that would permit an applicant
to enter and retrieve words by use of a keypad or an al-phabet
keyboard (that sometimes doubles as a numeric and
function keyboard) are NOT permitted. No computer of
any type is permitted. Applicants may not share calculators.
Persons using battery-powered calculators should make cer-
18 Real Estate Licensing in North Carolina
tain that their calculators contain fresh batteries or should
bring an extra set of batteries. No additional testing time
will be allowed for calculator malfunction. Your calculator
must be checked and approved by the examination proctor
before you take it into the testing area.
Examination Rules
• You may not enter the testing area until you have
completed check-in and been directed to your as-signed
seat by the examination proctor.
• You may not smoke, eat, or drink beverages in the
testing center. After testing begins, you may take
breaks, not to exceed 10 minutes per break, in the
designated break area or to use the restroom. How-ever,
ONLY ONE MALE AND ONE FEMALE
CANDIDATE will be allowed to take a restroom
break at the same time. Smoking is prohibited in
all buildings where PSI operates testing centers, and
you may NOT leave the building to take a smoke
break. While on break you must stay in the des-ignated
break area (or restroom) and you may not
leave the testing area until the end of testing.
• You may not use telephones or communicate in any
manner for any purpose with any person other than
the exam proctor during the entire period of testing
or while on break.
• You must be as quiet as possible throughout the
examination. You must not disrupt the quiet and
orderly administration of an examination in any
manner.
• Cheating or attempting to cheat on the examination
by any means, including both giving and receiving
assistance, is prohibited.
• Th e examination questions are the confi dential and
exclusive property of the Real Estate Commission.
Th erefore, you may not remove from the exam cen-ter
any notes about examination questions and you
may not communicate examination questions to
other persons, including instructors.
• All materials provided by the proctor for your use
in taking the examination (for example, HUD-1
Form, scratch paper and pencils) must be returned
to the proctor immediately upon completion of the
examination. Th e same is true for any examination
materials provided for use by a candidate receiving
a special accommodation.
Possession of any prohibited items or violation of any of
the above examination rules or procedures shall be grounds
for dismissal from the examination, invalidation of exami-nation
scores, and/or denial of a real estate license.
Check-in Procedures and Examination
Tutorial
Applicants should report to the Test Center thirty (30)
minutes before the scheduled examination and check in
with the test center proctor. Th e proctor will confi rm each
applicant’s appointment, review the applicant’s identifi ca-tion
and any other required documents and will photograph
him/her for security purposes. Th e proctor will also check
to make sure the applicant has not brought any prohibited
items to the test center.
After check-in, applicants will have an opportunity to
take a tutorial on the PC on which the examination will be
administered. Th e examination proctor will answer ques-tions
at this time, but applicants should be aware that the
proctors are not familiar with the content of the examina-tion
or with the state’s licensing requirements. Th e applicant
is responsible for knowing that he/she is supposed to take the
North Carolina Real Estate Licensing Examination rather than
any other test that may be off ered at the test center. Th e time
spent on the tutorial will not reduce the examination time.
Once applicants are familiar with the PC, they may begin
the examination.
Examination Time
Check-in and the introductory tutorial may take as much
as 30 minutes. Th e time allowed to take the examination is
four (4) hours, including any breaks. Applicants who fail the
examination will be allowed an additional hour to review
their examination on the computer immediately after they
receive their examination results. Th us, to be sure you have
enough time for the examination review in the event you fail
your examination, you should plan on spending up to six
(6) hours at the exam center.
Immediate Examination Results
When you complete the examination, your pass/fail re-sults
will be reported to you immediately on the computer
terminal. If you do not pass the examination, you will also
be advised of your results for each section of the exam and
will be given the opportunity to immediately review your
examination as described below. When you leave the exam
center, you will be provided with a written score report.
Examination Review by Failing
Applicants
An applicant who fails an examination may review his/
her examination at the testing center immediately following
completion of the examination and receipt of the examina-tion
results. Applicants who pass an examination may not
review their examination. Th is will be the only opportunity
for a failing applicant to review his/her examination. An ap-
Real Estate Licensing in North Carolina 19
plicant eligible for examination review who does not review the
examination at the testing center immediately following com-pletion
of the examination will be deemed to have waived the
right to review the examination. One hour will be allowed
for the review. Applicants will fi rst be given an opportunity
to review the questions they answered incorrectly by com-paring
their responses to the correct responses, and then,
if time remains, they may review questions they answered
correctly. By analyzing their performance and identifying
their weaknesses, it is hoped that applicants will be better
prepared to pass any future examination.
License Issuance for Passing Applicants
Licenses are not issued at the exam centers or by PSI.
Your examination results will be reported to the Real Es-tate
Commission, and licenses will be issued by the Com-mission
to persons who passed the examination and possess
the requisite “Character” for licensure (see the discussion
of “Character” under LICENSE QUALIFICATION RE-QUIREMENTS.
Applicants passing the examination should
expect to receive their license certifi cates within
approximately 10 days following their examination
date IF THERE ARE NO CHARACTER ISSUES AS-SOCIATED
WITH THE APPLICATION. Please do
not call the Commission Offi ce concerning license
issuance until at least 10 calendar days after the
examination date (45 days if there are character
issues to be considered).
OTHER EXAMINATION
INFORMATION
Postponing an Examination
Appointment
To cancel or postpone your examination appointment,
your cancellation notice must be received two full working
days before the scheduled testing date. To cancel an ap-pointment
you may contact PSI by telephone (800-733-
9267), fax (818-247-3853) or email (NCRE@psionline.
com). You may cancel and reschedule (postpone) an
examination appointment only once without forfeiting
both the license application fee and the examination fee.
Applicants who change or cancel their reservations without
proper notice will forfeit the examination fee. You should
be aware of the remainder of your 180-day period of exami-nation
eligibility period and you must reschedule and take
the examination during that time.
Excused Absences
Under certain limited circumstances you may be excused
from a scheduled examination for which you did not give
PSI the required two-days advance notice of cancellation.
You may be excused for missing a scheduled examination
and rescheduled for a future date without having to fi le an-other
license application and pay all required fees only if
your absence was the direct result of an emergency situa-tion
or condition that was beyond your control and that you
could not have reasonably foreseen. You must send your re-quest
for excused absence in writing to PSI promptly follow-ing
your absence from your scheduled exam. Your request
must set forth the reason for your absence and must include
documentation verifying such reason (e.g. statement from
physician). Your request for an excused absence will be de-nied
if you cannot be rescheduled and examined prior to
expiration of your 180-day period of examination eligibility.
Written requests for an excused absence from an examina-tion
must be mailed to:
PSI Services
3210 East Tropicana Avenue
Las Vegas, Nevada 89121
Forfeiture of Fees
Your scheduled appointment to take the examination
will be canceled, you will not be able to take the examina-tion,
your license application will be canceled, and you will
forfeit both the license application fee paid to the Commis-sion
and the examination fee paid to PSI if you do any of
the following:
• Cancel your scheduled examination appointment
with less than two working days’ notice to PSI;
• Cancel your rescheduled examination appointment
in an attempt to postpone an examination more
than once;
• Fail to schedule and take the examination on or be-fore
the last business day prior to the expiration of
your 180-day period of examination eligibility;
• Arrive at the PSI exam center more than 30 minutes
after the offi cial reporting time provided by PSI
when you schedule your examination;
• Fail to appear at the exam center for your scheduled
examination appointment; or
• Fail to present proper identifi cation and required
signature upon arrival for a scheduled examination.
(See the Required Identifi cation and Signature sub-section
of this booklet.)
20 Real Estate Licensing in North Carolina
Expedited Reapplication and Exam
Rescheduling for Previously Scheduled
Applicants for Examination
Applicants who fail the licensing examination will not
be allowed to retake the examination for at least 10 calendar
days. When using the expedited reapplication and resched-uling
system described below, the applicant will be limited
to selecting an examination date that falls at least 10 days
after the applicant’s most recent testing date.
Most applicants who either fail the examination or fail to
take their scheduled examination within their 180-day pe-riod
of eligibility may utilize an expedited (“one-stop”) reap-plication
and examination rescheduling procedure that con-veniently
allows them to reapply for licensure and to sched-ule
another examination by contacting PSI by telephone or
online through PSI’s website. Eligible applicants may simply
contact PSI, verify their eligibility for the “one-stop” procedure,
pay by credit card a comprehensive reapplication/rescheduling
fee of $96 ($30 application fee plus $66 examination fee), and
immediately schedule another examination for a date that falls
at least 10 days after the applicant’s most recent testing date.
(PSI will remit $30 of the $96 fee to the Commission.) Th is
procedure will save eligible applicants the trouble of fi ling
another paper application and will expedite their ability to
schedule a subsequent examination. [Note: For eligible ap-plicants
seeking to reinstate a previously held license, the
comprehensive “one-stop” reapplication/rescheduling fee is
$121 ($55 application fee plus $66 examination fee)].
To know if you are eligible for this “one-stop” proce-dure,
look at the date your examination eligibility expires
as shown on your “Notice of Examination Eligibility.” Th is
date will be 180 days from the date your last paper appli-cation
was processed by the Commission. You may use
the “one-stop” reapplication and examination rescheduling
procedure at any time prior to the expiration date shown on
your “Notice of Examination Eligibility”. Each time you
use the “one stop” reapplication procedure and pay the re-quired
fees you will receive an additional 180 days from the
day you use the “one stop” system to schedule and take the
licensing examination.
You must wait until the day after you fail the examination
(or fail to appear for a scheduled examination) to contact PSI
and utilize the “one-stop” procedure. Should you contact PSI
to use the “one-stop” procedure after the eligibility expira-tion
date shown on your “Notice of Examination Eligibil-ity”
has passed, PSI will not allow you to use that procedure
and will instruct you to fi le another application with the
Commission.
If you use the “one-stop” procedure, you must still con-tact
the Commission to update all information submitted
with your last paper application to refl ect recent changes,
especially changes related to: • Criminal charges or convic-tions
• Professional license charges, disciplinary actions or
denials • Liens or judgments.
Applicants Who Must Refi le an
Application with the Commission
If the eligibility expiration date shown on your “Notice
of Examination Eligibility”” (180 days from the date your
application was processed by the Commission) has already
passed and you do not pass or do not take the examination
prior to expiration of your 180-day examination eligibility
period, then you must fi le another paper application with
the Commission and receive a new “Notice of Examination
Eligibility” before you can contact PSI and schedule another
examination. Th is is required in order that the Commis-sion
may have reasonably current information regarding the
applicant. Th e applicant’s qualifi cations will be reassessed
when the subsequent application is fi led.
Emergency Exam Center Closing
If severe weather or another emergency forces the clos-ing
of a PSI Exam center on your scheduled testing date,
your examination will be rescheduled. PSI personnel will
attempt to contact you in this situation; however, you may
check the status of your testing schedule by calling (800)
733-9267 or by checking PSI’s website at www.psiexams.
com. Every eff ort will be made to reschedule your examina-tion
at a convenient time as soon as possible.
NEW LICENSEE INFORMATION
Issuance of Licenses
After an applicant has satisfi ed the qualifi cation require-ments,
passed the license examination (if required), and satis-fi
ed the Commission that he or she is of good character (See
“Consideration of Applicant’s Character” under “License
Qualifi cation Requirements”), the applicant will be deemed
qualifi ed for licensure. Persons who have satisfi ed the require-ments
for licensure will be sent a license certifi cate and license
pocket card to the address shown on the application form.
Applicants passing the license examination should expect
to receive their license certifi cates and pocket cards within ap-proximately
seven (7) days after their license examination, if
there are no character issues.
Note: If any application raises character issues
requiring special consideration, fi nal action on the
license application will be delayed. (See section
on “Consideration of Applicant’s Character” un-der
“License Qualifi cation Requirements.”)
It is unlawful for any person to engage in the business of a
real estate broker until the date his or her license is issued by
the Commission. Th e issuance date is displayed on the license
certifi cate issued to each broker.
Real Estate Licensing in North Carolina 21
Initial Licenses Are Inactive Provisional
Broker Licenses
All applicants who qualifi ed for licensure by examination
are issued a “provisional broker” license (technically a broker
license on “provisional” status) as defi ned in the “Introduc-tion��
section of this booklet. [EXCEPTION: An applicant
licensed by examination who qualifi ed based on broker licen-sure
in another jurisdiction is issued a broker license that is
NOT on provisional status.] A “provisional broker” must be
supervised by a “Broker-in-Charge” at all times when engaging
in real estate brokerage activities. A provisional broker must
satisfy the postlicensing education requirement described be-low
in order to terminate the provisional status of his or her
broker license.
Activation of Initial Inactive Provisional
Broker License
A provisional broker license is initially placed on inactive
status. Before the provisional broker can begin work in the
real estate business, the provisional broker and his or her bro-ker-
in-charge must fi le a “Notifi cation of Provisional Broker
Supervision” form with the Commission Offi ce to have the
provisional broker license placed on active status. Th is may be
accomplished by accessing the Commission’s website at www.
ncrec.state.nc.us and utilizing the interactive online form.
Requirement for Active Status and
Notifi cation of Changes in Employment
or Address
Any broker license, whether on “provisional” status or
not, must be on “active” status at all times when the broker
is performing real estate brokerage activities. To remain on
“active” status, a licensee must satisfy in a timely manner both
the postlicensing and continuing education requirements de-scribed
below. Also, a licensee must notify the Commission
within 10 days of any change in employment status (including
a change in broker-in-charge) or in business or residence ad-dress.
License Renewal
All real estate licenses expire on the next June 30 following the
date of issuance unless they are renewed by that date. Th is is true
even if the license was issued in May or June. License renewal
notices (post cards) are sent to licensees each year in May (in-cluded
with new licenses issued in late May or June). Licensees
should then renew their licenses either (1) online through the
Commission’s website at www.ncrec.state.nc.us using a credit
card or (2) by returning the renewal notice and renewal fee to
the Commission so that the Commission receives the returned
renewal notice and fee not later than June 30. Th e annual
license renewal fee is $40. Licensees are strongly encouraged to
renew ONLINE through the Commission’s website! Licensees are
responsible for renewing their licenses in a timely manner even
if they did not receive a renewal notice due to a business and/
or residence address change or other reason.
Renewal notices for active brokers are sent to their business
address (the address of the broker-in-charge of the offi ce with
which they are affi liated). Renewal notices for inactive brokers
are sent to their residence address on fi le with the Commission.
No person may engage in real estate brokerage activities after
his/her license has expired.
A new license pocket card is sent to brokers each year
upon the renewal of their licenses. Th is card verifi es renewal,
but does not show whether the license is on active or inactive
status. Whenever there is a change in active or inactive status,
a separate notice is sent to the licensee.
Postlicensing Education for Provisional
Brokers
All new provisional brokers must satisfy the postlicensing
education requirement of 90 classroom hours of postlicens-ing
education within three (3) years of the date of initial
licensure. Th e postlicensing education is divided into three
30-hour postlicensing courses titled as follows: Broker Rela-tionships
and Responsibilities, Contracts and Closing, and Se-lected
Topics. Provisional brokers must complete at least one of
the three courses during each of the fi rst three one-year peri-ods
following the date of initial licensure and all three courses
within three years of initial licensure. A provisional broker
may elect to complete all three courses during the fi rst or sec-ond
year after initial licensure.
Upon completing all three postlicensing courses, the pro-visional
status of the broker license will be terminated by the
Commission. [Approved schools will report course comple-tion
to the Commission, so licensees do not need to report
course completion or request termination of provisional sta-tus.]
If a provisional broker fails to complete a postlicensing
course by the end of either the fi rst or second year after initial
licensure, his or her license will be placed on inactive status
until he or she remedies the education defi ciency and requests
reactivation of his or her license. If a provisional broker fails to
complete all three postlicensing courses by the end of the third year
after initial licensure, his or her license will be CANCELED! To
reinstate a canceled license, the former licensee will then have
to comply with Commission requirements for reinstatement
of such license.
Th e postlicensing courses are only available as in-class
courses through Commission-approved North Carolina
schools. Because of the “hands-on” nature of the instruction
required in these courses, they are not available online, by cor-respondence
or by any other distance education method. As
noted below, however, some resident and most nonresident
provisional brokers may have additional options for satisfying
some or all of the postlicensing education requirement.
22 Real Estate Licensing in North Carolina
Postlicensing Course Waiver Based on
“Equivalent Education/Experience”
A vast majority of provisional brokers, especially resi-dent
provisional brokers, must take the postlicensing courses.
However, it is possible for some provisional brokers, especially
those with substantial (i.e., several years) brokerage experience
in another jurisdiction or substantial experience as a real estate
attorney, to obtain a waiver of one or more of the postlicensing
courses based on their “equivalent” experience. Th e specifi c
course(s) waived would depend on the type of experience (e.g.,
residential sales, commercial brokerage, etc.). Provisional bro-kers,
especially those who are nonresidents and do NOT have
a North Carolina business or delivery address, may also be
able to obtain “equivalent” credit for some postlicensing and
continuing education courses taken in another jurisdiction.
Nonresident provisional brokers may also have their “provi-sional”
status removed (i.e., have all postlicensing education
waived) if they obtain a broker license in another jurisdiction.
Provisional brokers who think they may possess qualifi cations
justifying a waiver may request from the Commission offi ce a
copy of the Commission’s “Instructions for Requesting a Waiver
of Postlicensing Education” which contains examples of possible
grounds for a waiver and directions for making a request.
Distinguishing Postlicensing Education
and Continuing Education
Postlicensing education should not be confused with
continuing education. Postlicensing education is a one-time
requirement that must be completed within the prescribed pe-riod
of time after initial licensure. Continuing education must
be completed on an ongoing basis each annual license period
beginning with the fi rst full annual license period after initial
licensure.
Continuing Education
Th e continuing education requirement is eight (8) hours
per license period, including the mandatory Real Estate Up-date
Course (4 hours) plus one 4-hour elective course. Licens-ees
are generally required to satisfy the continuing education
requirement each annual license period (July - June) in order
to renew their licenses on active status. Th ere is however, a
limited exception for new licensees. A newly licensed broker
licensed by examination, reciprocity or reinstatement does not have
to obtain CE during the license period he/she is originally licensed
and only has to satisfy the 8-hour annual CE requirement prior
to his/her second license renewal in order to renew his/her license
on active status.
A nonresident licensee who does NOT have a North
Carolina business or delivery address and who also holds a li-cense
in his/her resident jurisdiction may satisfy the continu-ing
education requirement by maintaining the license in the
other jurisdiction on active status and certifying such license
status at the time of renewing his/her North Carolina license.
On the other hand, a nonresident who has a North Caro-lina
business or delivery address does NOT have this option
and must take the Real Estate Update mandatory CE course
in North Carolina and either take a North Carolina elective
course or obtain equivalent elective course credit for a CE
course(s) taken in another jurisdiction.
LICENSING BY RECIPROCITY
Under the authority granted the Real Estate Commission
by Section 93A-9 of the Real Estate License Law, the Commis-sion
has agreed to “Reciprocal Licensing Arrangements” with
the licensing authorities in several other jurisdictions whereby
resident real estate licensees in such jurisdictions (and some
licensees of such jurisdictions who recently moved to North
Carolina) may qualify for North Carolina real estate licenses
without being required to pass the North Carolina real estate
license examination. Similarly, resident North Carolina real
estate licensees can qualify for licensure in these other states
without taking a license examination in those states.
Licensing by reciprocity (i.e., license examination waiver) is
only available for resident licensees of a jurisdiction with which
North Carolina has a reciprocal licensing arrangement, regardless
of the amount of brokerage experience such a licensee may possess.
Basic Qualifi cation Requirements for
Licensure by Reciprocity
Th e basic general qualifi cation requirements under North
Carolina’s reciprocal licensing arrangements typically require
that an applicant for licensure by reciprocity must either:
(1) Be a resident licensee of a jurisdiction with which North
Carolina has a reciprocal licensing arrangement (a “qualifying”
jurisdiction), or (2) hold a license in a qualifying reciprocal
jurisdiction and have moved from such a jurisdiction to North
Carolina within not more than 90 days prior to submitting an
application for a North Carolina license. A NORTH CARO-LINA
RESIDENT CANNOT OBTAIN A NORTH CAR-OLINA
LICENSE BY RECIPROCITY IF HE/SHE HAS
LIVED IN NORTH CAROLINA FOR MORE THAN 90
DAYS.
A reciprocal license applicant must also have obtained his/
her license in the “qualifying” jurisdiction by passing the ap-propriate
real estate license examination in that jurisdiction or
another jurisdiction with which North Carolina has reciproc-ity.
All applicants must be found to possess the requisite char-acter
for licensing.
Note that in addition to these basic general requirements,
there may be other unique specifi c requirements applicable
under the various reciprocal agreements. Th e most signifi cant
of these deal with NC resident licensees applying for a license
in certain reciprocal jurisdictions and are noted under the list
of reciprocal jurisdictions shown below.
Real Estate Licensing in North Carolina 23
Reciprocal Jurisdictions
Listed below are those jurisdictions (as of the printing of
this booklet) with which the North Carolina Real Estate Com-mission
has reciprocal licensing arrangements providing for
waiver of the license examination:
Alabama Kentucky South Carolina
Arkansas Louisiana Tennessee
Connecticut Mississippi West Virginia
Georgia Nebraska
Iowa Oklahoma
Special Requirements/Provisions
Alabama: License in “qualifying” jurisdiction may be ac-tive
or inactive at time of application. (Applies to licensees
applying to either NC or AL for a reciprocal license.) Also, an
applicant for an AL reciprocal license may be a resident of either
NC or AL and must provide proof of errors and omissions insur-ance
coverage. Further, a reciprocal license issued by AL to a NC
licensee may not be converted to a “resident” AL license unless the
licensee satisfi es AL’s examination requirements.
Louisiana, South Carolina, Tennessee and West Vir-ginia:
NC resident brokers (not provisional) applying for a
broker license by reciprocity in any of these states must satisfy
that state’s requirement with regard to brokerage experience
prior to licensure. Typically, the requirement is for either two
or three years of brokerage experience. Tennessee also requires
that NC resident brokers applying for a TN broker license
provide proof of errors and omissions insurance coverage.
Nebraska: NC resident licensees applying for a NE license
by reciprocity must complete a three-hour course on NE law,
rules and agency prior to licensure. (Course is available by
correspondence.)
License Equivalency
A “salesperson” (or comparable level of licensee) in a
qualifying reciprocal jurisdiction may obtain a North Carolina
“provisional broker” license by reciprocity, and vice-versa.
Similarly, a broker in a qualifying reciprocal jurisdiction may
obtain a North Carolina broker license that is NOT on pro-visional
status by reciprocity, and vice-versa.
Application Requirements for Reciprocal
License
In general, licensees with currently active, resident licens-es
in qualifying reciprocal jurisdictions (or who have moved
to North Carolina from such a jurisdiction within 90 days)
who wish to obtain North Carolina real estate licenses by
reciprocity must complete and submit the following forms
and information:
1. Application for Real Estate License (Form is in center
of this booklet). Th is form and all required attachments must
be submitted by all applicants. See the “APPLICATION PRO-CESS”
section of this booklet.
2. Application Fee. A cashier’s check, certifi ed check or
money order for the thirty dollar ($30) application fee must
accompany the application.
3. Nonresident Supplement to Real Estate License Ap-plication
(Form is in back of this booklet – not required if ap-plicant
is a North Carolina resident). NOTE: Th e nonresident
supplement form must be fi led in addition to the license applica-tion
form in the center of this booklet. Th e nonresident supple-ment
has three purposes: (1) It appoints the North Carolina
Real Estate Commission to receive service on the applicant in
any proceeding against the applicant arising under any laws of
this state. (2) It provides the Commission information as to
the manner in which a BROKER applicant intends to operate
as a real estate licensee in North Carolina - as an independent
broker, as a broker affi liated with a fi rm, as the sole proprietor
of a fi rm, or as some other business entity. (Th is information
is important because of the requirement that fi rms which are
engaged in real estate brokerage in North Carolina must ob-tain
separate real estate licenses.) (3) Finally, the form requires
information to support the applicant’s claim of residency in a
qualifying jurisdiction.
4. Notifi cation of Provisional Broker Supervision
Form [provisional broker applicants only]. (Form is in back
of this booklet). Reciprocal licenses issued to nonresidents are
only issued on “active” status. Th is means that a nonresident
provisional broker license applicant by reciprocity must have
a North Carolina supervising broker (broker-in-charge) before
the provisional broker can be issued a license by reciprocity.
[North Carolina residents for less than 90 days applying for
provisional broker licensure by reciprocity may also submit the
supervision form with their application and be issued a license
on active status, or they may omit the supervision form and
they will be issued a license on inactive status and then have to
activate that license before engaging in real estate practice.]
5. Certifi cation of License History. Th is must be an
original offi cial certifi cation of license history issued by the real
estate licensing agency in the applicant’s qualifying reciprocal
jurisdiction using the standard form that agency uses for this
purpose. A certifi cation of license history must be submitted
for each jurisdiction in which the applicant has held a license
within the past fi ve years. Th e certifi cation must set forth the
current status of the applicant’s license (active, inactive, ex-pired,
etc.), the date the applicant was licensed, a record of any
disciplinary actions taken or pending against the applicant,
and any other information relevant to the applicant’s license
history. Th is certifi cation must have been issued by the applicant’s
qualifying reciprocal jurisdiction within six months prior to the
date of license application. [NOTE: Only an original offi cial
certifi cation of license history is acceptable. A copy of a certi-fi
cation of license history or the applicant’s real estate license or
pocket identifi cation card is NOT acceptable.]
24 Real Estate Licensing in North Carolina
ATTENTION: Some jurisdictions require sever-al
weeks to fi ll orders for a certifi cation of license
history. You must obtain and provide all required
certifi cations of license history before your license
application will be accepted. NO EXCEPTIONS.
6. Criminal Record Report. See the instructions on
the license application form and in the “Criminal Record Re-port
Requirement” paragraph under the “APPLICATION
PROCESS” section elsewhere in this booklet.
7. Character Information. All explanatory information
required of persons who answer “Yes” to the items on the
license application relating to criminal off enses, professional
license disciplinary action or liens/judgments. See the “AP-PLICATION
PROCESS” section of this booklet.
NOTE: Most reciprocal license applications are returned be-cause
they are incomplete. Read carefully the application form
completion and enclosure requirements in the “APPLICATION
PROCESS” section of this booklet.
Procedures and License Issuance –
Reciprocal Licensing
Properly completed applications for licensure by reciprocity
will normally be processed within approximately 7-10 days of
receipt by the Commission, if there are no character issues that
require extra time for review by the Commission. Note, however,
that broker applications often take longer if the broker will be
operating in North Carolina as a fi rm and must also obtain a
separate real estate fi rm license. Also, where an applying bro-ker
must be designated as a broker-in-charge who will serve
as the supervising broker of a provisional broker who is con-currently
applying for licensure by reciprocity, the applications
of both may require longer for processing. Finally, if there is
a character issue that must be considered in connection with
an application, action on that application will usually require
more time, up to 45 days if consideration by the Commission
at its next regular meeting is needed.
Upon fi nding that a reciprocal license applicant is fully
qualifi ed, including a determination that he or she possesses
the requisite character for a North Carolina real estate license,
a nonresident applicant will be issued a nonresident North
Carolina real estate license and a North Carolina resident ap-plicant
(who moved to North Carolina within 90 days prior to
making application) will be issued a resident North Carolina
real estate license. A nonresident licensee by reciprocity will
receive all licensing privileges granted to resident real estate li-censees
subject to any restrictions imposed by the reciprocal
licensing arrangement with the licensee’s qualifying jurisdic-tion.
Postlicensing Education and Continuing
Education Requirements
Very Important Notice: See the sections on “Postlicensing
Education for Provisional Brokers” and “Continuing Educa-tion”
under “NEW LICENSEE INFORMATION” that ap-pear
immediately preceding the section on “LICENSING BY
RECIPROCITY.” While there are some special policies regard-ing
postlicensing education and continuing education for non-resident
licensees with no North Carolina business or delivery
address, there are no special exceptions to postlicensing and con-tinuing
education requirements for reciprocal licensees. Licensees
are treated the same for postlicensing and continuing education
purposes regardless of whether their license was issued by reciprocity
or by examination.
Conversion of Reciprocal Nonresident
License to Resident License
All of North Carolina’s current reciprocal licensing ar-rangements
except the arrangement with Alabama provide for
the conversion of a nonresident license issued by reciprocity
to a resident license without any additional education or ex-amination
should the licensee move to the state that issued
the nonresident reciprocal license. A NC licensee who obtains
an AL reciprocal license may not convert the AL license to
a “resident” license without fi rst satisfying AL’s examination
requirements.
North Carolina Licensees Wanting
a Reciprocal License in Another
Jurisdiction
North Carolina licensees interested in obtaining a license
by reciprocity in a jurisdiction with which North Carolina has
a reciprocal licensing arrangement are advised to contact the
real estate licensing agency in the jurisdiction to which they
will be applying for complete details regarding that jurisdic-tion’s
qualifi cation requirements. Th e addresses and telephone
numbers for all real estate licensing agencies anywhere in the
world may be found by accessing the website of the Associa-tion
of Real Estate License Law Offi cials (ARELLO) at www.
arello.org.
LICENSE REINSTATEMENT
License Expired Six Months Or Less
Persons whose licenses have been expired for six months
or LESS may reinstate their licenses by simply paying the $55
license reinstatement fee. Th ese persons are not required to fi le
a license application or to meet any education or examination
requirements to reinstate; however, they must have taken all
required continuing education in order for their license to be
placed on active status.
Real Estate Licensing in North Carolina 25
License Expired More Than Six Months
A person whose license has been expired for more than six
months or whose license has been revoked or surrendered for
any period of time must:
(1) Application. Complete and fi le the Application for
Real Estate License form contained in this booklet (including
the required criminal record report, documentation of quali-fying
education/experience and/or licensure in another state,
and the “Nonresident Supplement” to the license application
if applicable);
(2) Fee. Pay the $55 fee for reinstatement of an expired
license by certifi ed check, cashier’s check or money order ($30
for reinstatement of a revoked or surrendered license);
(3) Education and/or Examination. Demonstrate to the
satisfaction of the Commission that he/she possesses the cur-rent
knowledge of real estate brokerage necessary to act in a
manner that safeguards the public interest (see “Demonstrat-ing
Current Knowledge of Real Estate Brokerage” in this sec-tion),
and
(4) Character. Satisfy the Commission that he/she pos-sesses
the requisite character for licensing. (See the section in
this booklet on “Consideration of Applicant’s Character” un-der
“License Qualifi cation Requirements.”)
NOTE: A former “salesperson” may request li-cense
reinstatement as a “provisional broker.”
Demonstrating Current Knowledge of
Real Estate Brokerage
Th e Commission has approved the guidelines described
below regarding demonstration of current knowledge of real
estate brokerage when a former licensee requests reinstatement
of a license expired, revoked or surrendered for more than six
months, regardless of whether the license was originally issued
by examination or reciprocity.
IMPORTANT NOTICE
At the time of printing this booklet, the Commis-sion
is developing revised license reinstatement
guidelines regarding demonstration of current
knowledge. Therefore, the guidelines presented
below are subject to change at any time.
License Expired, Revoked or
Surrendered For More Than Six Months
But Not More Than Two Years
Provisional broker or broker applicants may demonstrate
the current knowledge required for reinstatement by satisfying
one of the following options:
(1) Provisional Broker: Attending a minimum of 30
hours of a 75-hour broker prelicensing course (no course exam
required) within six months prior to application -- Broker:
Completing a 30-hour postlicensing course (including passing
the course exam) within six months prior to application; OR
(2) Passing the current license examination; OR
(3) Possessing an active salesperson or broker license, as
appropriate, in another state.
License Expired, Revoked or
Surrendered For More Than Two Years
But Not More Than Five Years
Provisional broker or broker applicants may demonstrate
the current knowledge required for reinstatement by satisfying
one of the following options:
(1) Provisional Broker: Completing a 75-hour broker
prelicensing course (including passing the course exam) within
two years prior to application – Broker: Completing all three
30-hour postlicensing courses (including passing the course
exams) within two years prior to application; OR
(2) Passing the current license examination; OR
(3) Possessing an active salesperson or broker license, as
appropriate, in another state.
License Expired, Revoked or
Surrendered For More Than Five Years
Applicants will be treated for qual