North Carolina Real Estate Broker Exam — All Questions

The standard North Carolina Offer to Purchase and Contract typically uses which mechanism to give the buyer a negotiated period to investigate the property and terminate for any reason?

• a.A statutory three-day rescission period
• b.A due diligence fee and due diligence period✓
• c.An automatic 30-day inspection contingency
• d.A mandatory appraisal contingency

North Carolina's standard form uses a negotiated due diligence period, often paired with a due diligence fee paid to the seller, during which the buyer may investigate and terminate for any reason or no reason. There is no general statutory three-day rescission right for a home purchase, and the inspection period is negotiated rather than a fixed automatic 30 days. Appraisal protections are handled within due diligence, not as a separate mandatory contingency.

In North Carolina, residential real estate closings are conducted under a model in which:

• a.Only real estate brokers may conduct the closing
• b.No attorney involvement is permitted
• c.A licensed attorney supervises the closing and handles the title work✓
• d.Closings are always handled by out-of-state escrow companies

North Carolina follows an attorney-supervised closing model in which a licensed North Carolina attorney handles the title examination and the disbursement of funds. Brokers may facilitate the transaction but do not perform the legal closing work themselves. Out-of-state escrow-only companies do not replace the attorney's role in North Carolina residential closings.