NC Broker Cheat Sheet.
The night-before summary, built like the exam.

NC Real Estate Broker Exam — Cheat Sheet

Fast-reference facts, formulas, and must-remember rules for the North Carolina broker licensing exam. Use this to drill the numbers and the concepts that show up most.

The Numbers You Must Know

• 140 scored questions on the exam.
• Passing score: 75 — required on each section (national + state law).
• Exam fee: $63.

The exam is split into two sections; you must clear 75 on each independently — a strong national score cannot rescue a weak state-law score, and vice versa.

Real Estate Math — Core Formulas

• Commission = Sale Price × Commission Rate
• Percentage (T = B × R): Part = Total × Rate. Rearrange for whatever is missing (Rate = Part ÷ Total; Total = Part ÷ Rate).
• Area: Rectangle = Length × Width; Triangle = ½ × Base × Height. Convert acres using 1 acre = 43,560 sq ft.
• Loan-to-Value (LTV) = Loan Amount ÷ Value (or Price, whichever is lower).
• Simple Interest = Principal × Rate × Time.
• Transfer/Excise tax (NC): charged per $500 of value (or fraction thereof) — round the price UP to the next $500 before multiplying.
• Proration: Annual amount ÷ 360 (or 365) = daily rate; multiply by days owed. Know who owns the day of closing per the problem's instructions.
• Gross Rent Multiplier (GRM) = Price ÷ Gross Rent.

Property Rights & Estates

• Bundle of rights: possession, control, exclusion, enjoyment, disposition.
• Fee simple absolute = highest, most complete ownership.
• Freehold (ownership) vs. leasehold (tenant's right to possess).
• Encumbrances: liens, easements, encroachments, deed restrictions.
• Easement appurtenant needs two parcels (dominant + servient); easement in gross needs only one (e.g., utility).

Contracts & Deeds

• Valid contract elements: competent parties, offer & acceptance (mutual assent), consideration, legal purpose, and — for real estate — in writing (Statute of Frauds).
• General warranty deed = broadest grantee protection; quitclaim = no warranties, only conveys whatever interest the grantor has.
• A deed must be delivered and accepted to transfer title. Recording gives constructive notice but is not required for validity.

Agency & Fiduciary Duties (OLD CAR)

• Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable care.
• NC requires the Working With Real Estate Agents Disclosure at first substantial contact.
• Trust/escrow money must be kept separate — commingling and conversion are prohibited.

Federal Law Hot Spots

• Fair Housing Act protected classes: race, color, religion, national origin, sex, familial status, disability.
• RESPA: governs closing disclosures, prohibits kickbacks/referral fees.
• TILA / Reg Z: triggered terms in advertising require full disclosure of financing terms.
• Lead-based paint (pre-1978): disclosure + pamphlet required.

Financing & Liens

• NC is a title-theory state using deeds of trust (trustee holds title) with power-of-sale non-judicial foreclosure.
• Lien priority is generally first-recorded, first in line — except property tax liens, which take priority.

Test-Day Strategy

• Answer national and state questions with equal care — each section needs its own 75.
• On math, write the formula first, plug in, then solve; watch for "per $500" and acre conversions.
• Eliminate two wrong answers before choosing; "most complete" / "best" answers usually reflect fiduciary duty or full disclosure.