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Key Facts: NC Real Property Specialist Exam

G.S. 47-18

Connor Act pure-race recording statute

North Carolina General Statutes

4 findings

Clerk findings to authorize power-of-sale foreclosure (G.S. 45-21.16)

North Carolina General Statutes

10 days

Upset-bid window after a foreclosure sale (G.S. 45-21.27)

North Carolina General Statutes

30 years

Marketable Title Act root of title (Chapter 47B)

North Carolina General Statutes

30 days / 15 days

Assessment-lien delinquency and pre-filing notice (G.S. 47F-3-116)

North Carolina General Statutes

100+

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The NC State Bar Certified Specialist in Real Property Law requires NC Bar membership in good standing (commonly 5+ years), substantial involvement in real property law, real property CLE, favorable peer review, and passing the Board's written specialty exam (roughly a 6-hour day; passing standard set by the Board, commonly about 70%). North Carolina certifies Residential and Business Real Property as subspecialties sharing a common core. The exam emphasizes that North Carolina is a pure-race recording state under the Connor Act (G.S. 47-18): the first to record prevails regardless of notice. Heavily tested areas include deeds and warranty covenants, the Marketable Title Act 30-year root (Ch. 47B), title-theory deeds of trust and power-of-sale foreclosure before the clerk (G.S. 45-21.16, 10-day de novo appeal, upset bids G.S. 45-21.27), anti-deficiency protections (G.S. 45-21.36 and 45-21.38), the Good Funds Settlement Act (Ch. 45A), Chapter 42 landlord-tenant (Tenant Security Deposit Act G.S. 42-50 to 42-52, warranty of habitability G.S. 42-42, no self-help eviction), and the Planned Community Act (Ch. 47F-3-116 assessment liens) and Condominium Act (Ch. 47C). Confirm current fees and format on nclawspecialists.gov.

Sample NC Real Property Specialist Practice Questions

Try these sample questions to review concepts for the NC Real Property Specialist exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 200+ question experience with AI tutoring.

1A grantor signs and delivers a North Carolina deed conveying Blackacre to Buyer A on Monday. The deed is never recorded. On Wednesday the same grantor signs and delivers a deed for the same parcel to Buyer B, who knows about the earlier sale to A. Buyer B records first. Under North Carolina law, who owns Blackacre?
A.Buyer B, because North Carolina is a pure-race state and B recorded first even with actual knowledge
B.Buyer A, because A's deed was delivered first regardless of recording
C.Buyer A, because B had actual notice of the prior conveyance
D.Neither, because the second conveyance is void for fraud
Explanation: North Carolina's Connor Act, N.C.G.S. 47-18, makes the state a pure-race recording jurisdiction. The first party to record a properly executed conveyance prevails, and notice (even actual knowledge) of a prior unrecorded interest is irrelevant. Because Buyer B recorded first, B takes title even though B knew of the sale to A.
2Under the North Carolina Connor Act, where must a deed conveying real property be registered to be valid against lien creditors and subsequent purchasers for value?
A.With the clerk of superior court in the county of the grantor's residence
B.With the register of deeds in the county where the land lies
C.With the North Carolina Secretary of State
D.With the county tax assessor's office
Explanation: N.C.G.S. 47-18 provides that a conveyance of land is not valid against lien creditors or purchasers for value from the grantor but from the time of registration in the office of the register of deeds in the county where the land is located. Recording in the proper county register of deeds is the act that perfects priority.
3A North Carolina seller conveys property by a deed that warrants only against defects in title arising during the seller's own period of ownership, not against defects predating the seller's ownership. What type of deed is this?
A.General warranty deed
B.Quitclaim deed
C.Special warranty deed
D.Bargain and sale deed without covenants
Explanation: A special warranty deed warrants title only against claims arising by, through, or under the grantor (defects created during the grantor's ownership). It does not cover defects predating the grantor's tenure. By contrast, a general warranty deed warrants against all defects regardless of when they arose.
4A North Carolina commercial lease has a primary term of two years with two three-year renewal options, making the potential total term eleven years. To protect the tenant's leasehold against a subsequent purchaser of the property, what should the attorney do?
A.Nothing, because possession by the tenant gives constructive notice to all buyers
B.File the full lease with the clerk of superior court
C.Send written notice of the lease to the seller's title insurer
D.Record a memorandum of lease with the register of deeds, because the term exceeds three years
Explanation: Under the Connor Act (N.C.G.S. 47-18), a lease for a term of more than three years, including renewal options, must be recorded to be valid against subsequent purchasers and lien creditors. Recording a memorandum of lease in the register of deeds preserves the tenant's priority. Because the renewal options extend the term past three years, recording is required.
5In a typical North Carolina residential purchase financed by a lender, what instrument does the borrower sign to secure the loan with the real property, and who holds bare legal title under it?
A.A deed of trust, with a neutral trustee holding legal title for the benefit of the lender
B.A mortgage, with the lender holding legal title until payoff
C.A contract for deed, with the seller retaining legal title
D.An installment land contract, with title held in escrow by the closing attorney
Explanation: North Carolina is a deed-of-trust (title-theory) state. The borrower conveys legal title to a neutral trustee who holds it for the benefit of the lender (beneficiary). This three-party structure allows non-judicial foreclosure under a power of sale governed by Chapter 45, Article 2A.
6Before a North Carolina trustee may conduct a power-of-sale foreclosure under a deed of trust, the trustee must file a notice of hearing and obtain findings from which official?
A.A superior court judge after a jury trial
B.The clerk of superior court of the county where the property is located
C.The register of deeds
D.A magistrate in small claims court
Explanation: Under N.C.G.S. 45-21.16, the trustee or mortgagee must file a notice of hearing with the clerk of superior court and serve it on parties entitled to notice. The clerk holds a hearing and may authorize the sale only upon finding a valid debt held by the foreclosing party, default, the right to foreclose under the instrument, and proper notice.
7At a North Carolina power-of-sale foreclosure hearing under N.C.G.S. 45-21.16, which of the following is NOT one of the findings the clerk of superior court must make to authorize the sale?
A.The existence of a valid debt of which the party seeking to foreclose is the holder
B.Default under the instrument securing the debt
C.That the fair market value of the property exceeds the outstanding debt
D.The right to foreclose under the instrument and proper notice to those entitled
Explanation: N.C.G.S. 45-21.16(d) requires the clerk to find: (i) a valid debt of which the foreclosing party is the holder, (ii) default, (iii) the right to foreclose under the instrument, and (iv) proper notice to those entitled. The clerk does not evaluate whether the property's value exceeds the debt; that is not a statutory finding.
8After the clerk authorizes a North Carolina power-of-sale foreclosure, a party who wishes to challenge the clerk's order must appeal within what period, and how is the appeal heard?
A.Within 30 days, heard on the record only
B.Within 60 days, by petition to the Court of Appeals
C.Within 3 days, heard by a magistrate
D.Within 10 days, heard de novo by a district or superior court judge
Explanation: Under N.C.G.S. 45-21.16(d1), the clerk's act of finding or refusing to find the statutory elements is a judicial act appealable to the district or superior court judge within 10 days. The appeal is heard de novo, meaning the judge considers the matter anew rather than reviewing only the clerk's record.
9Following a North Carolina foreclosure sale under a power of sale, a third party files a higher bid at the courthouse. North Carolina law permits an upset bid to be filed within how many days after the prior bid is reported, and what must accompany it?
A.10 days, with an increase of at least 5 percent (minimum $750) and the required deposit
B.5 days, with no deposit required
C.20 days, with a 10 percent deposit
D.30 days, with a cashier's check for the full bid
Explanation: Under N.C.G.S. 45-21.27, an upset bid must be filed within 10 days after the report of sale (or the last upset bid). The upset bid must raise the prior bid by at least 5 percent, but in no event by less than $750, and must be accompanied by the statutory deposit. Each timely upset bid restarts the 10-day period.
10Under the North Carolina Good Funds Settlement Act, when may a settlement agent disburse closing proceeds from its trust account?
A.Immediately upon signing of the closing documents, regardless of funding status
B.Only after the agent has received collected funds (or qualifying deposited funds such as a North Carolina attorney trust account check)
C.Within 24 hours of closing in all cases
D.Only after the deed and deed of trust have been recorded for at least 30 days
Explanation: The Good Funds Settlement Act, Chapter 45A, prohibits a settlement agent from disbursing settlement proceeds unless those proceeds are collected funds. The Act allows disbursement in reliance on certain qualifying deposits, including cashier's checks, certified checks, and checks drawn on the trust account of a North Carolina-licensed attorney. This prevents disbursing against uncollected funds.

About the NC Real Property Specialist Exam

The North Carolina State Bar Certified Specialist examination in Real Property Law tests attorneys with substantial real property experience seeking the certified-specialist designation. North Carolina certifies Residential Real Property and Business Real Property as subspecialties that share a common core of North Carolina real property law. The written exam covers conveyancing and deeds, title examination under the Connor Act pure-race recording statute (G.S. 47-18), financing and power-of-sale foreclosure of deeds of trust (Chapter 45), the Good Funds Settlement Act (Chapter 45A) and closings, leases and land use under Chapter 42, and owners' associations, condominiums, and easements (Chapters 47F and 47C). Candidates must satisfy practice, CLE, peer-review, and examination requirements set by the Board.

Exam sponsor: North Carolina State Bar Board of Legal Specialization. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

Question count not published by the exam provider

Time Limit

Approximately 6 hours (one day)

Passing Score

Set by the Board (commonly approximately 70%)

Exam / Certification Fees

Confirm on nclawspecialists.gov

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

18%

NC Conveyancing & Deeds

Deed validity elements (competent grantor, identifiable grantee, words of conveyance, adequate description, delivery, acknowledgment for recording), deed types and warranty covenants (general vs special warranty, quitclaim; present covenants like seisin and against encumbrances vs future covenants like warranty and quiet enjoyment), estates in land (fee simple absolute and defeasible, life estates and waste, remainders), concurrent ownership (tenancy in common, joint tenancy with survivorship requiring express language under Chapter 41, tenancy by the entirety and creditor protection), mineral severance, equitable conversion, reformation, and the Statute of Frauds (G.S. 22-2)

18%

Title Examination & the Connor Act

Connor Act pure-race recording (G.S. 47-18): registration in the register of deeds where the land lies is required to be valid against lien creditors and purchasers for value, and the first to record prevails regardless of notice. Chain-of-title searches, grantor-grantee indexes, constructive notice from recorded instruments, the Marketable Title Act 30-year root (Ch. 47B), lien priority (first in time, first in right), judgment liens on docketing, title insurance, acknowledgment requirements (G.S. 47-17), and curative practice for encroachments and uncanceled liens

16%

Financing, Deeds of Trust & Foreclosure

Title-theory deed of trust with a neutral trustee holding bare legal title for the lender (beneficiary); power-of-sale foreclosure under Chapter 45, Article 2A; the clerk of superior court hearing under G.S. 45-21.16 with four findings (valid debt and holder, default, right to foreclose, proper notice); notice served at least 10 days before the hearing; 10-day de novo appeal to district or superior court; upset bids under G.S. 45-21.27 (10-day window, 5% or $750 minimum increase); anti-deficiency protections (G.S. 45-21.36 fair-value offset and 45-21.38 purchase-money bar); future advances (G.S. 45-67 et seq.); satisfactions and subordination; effect of the bankruptcy automatic stay

16%

Good Funds Settlement Act & Closings

Chapter 45A prohibits disbursing settlement proceeds that are not collected funds; the agent may rely on qualifying deposits (cashier's, certified, teller's, and official bank checks, and checks on a North Carolina attorney's trust account). The Act applies to transactions involving a one-to-four-family residential dwelling or a residential lot. Violations create liability for actual damages, reasonable attorneys' fees, plus the greater of $1,000 or double 60-day interest. The North Carolina record-then-disburse practice protects pure-race priority and good-funds compliance; TRID provides the Loan Estimate and Closing Disclosure

16%

Leases & Land Use

Chapter 42 residential landlord-tenant: the implied warranty of habitability (Residential Rental Agreements Act, G.S. 42-42); the Tenant Security Deposit Act (G.S. 42-50 to 42-52) with deposit caps (2 weeks week-to-week, 1.5 months month-to-month, 2 months for longer terms), trust-account or bond safekeeping, and 30/60-day accounting; summary ejectment grounds (nonpayment, breach of condition, holdover) heard by a magistrate; prohibition on self-help eviction; termination notice periods (G.S. 42-14); commercial leases (assignment consent, duty to mitigate); recorded restrictive covenants running with the land; zoning, rezoning as a legislative act, variances from the board of adjustment, and waterfront/public-trust boundaries

16%

Owners' Associations & Easements

North Carolina Planned Community Act (Chapter 47F): assessment liens under G.S. 47F-3-116 (30-day delinquency, claim of lien filed with the clerk of superior court, 15-day pre-filing mailed statement, priority subject to prior-recorded liens and taxes, power-of-sale foreclosure except fine-only debts requiring judicial foreclosure), fines after notice and hearing, declarant rights and phasing, and declaration amendments. Condominium Act (Chapter 47C): creation by recorded declaration, undivided interests in common elements held as tenants in common, encroachment easements (G.S. 47C-2-114), and resale certificates. Easements: appurtenant vs in gross, easement by necessity, prescriptive easements (20 years), express grant under the Statute of Frauds and the Connor Act

Preparing for the NC Real Property Specialist Exam

What You Need to Know

  • Passing score: Set by the Board (commonly approximately 70%)
  • Assessment: Question count not published by the exam provider
  • Time limit: Approximately 6 hours (one day)
  • Exam / certification fees: Confirm on nclawspecialists.gov Official sources

Using Our Practice Resources

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  • Review every answer and explanation
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NC Real Property Specialist: Suggested Study Strategy

1Drill the Connor Act (G.S. 47-18) until it is automatic: North Carolina is pure race, so the first to record prevails regardless of notice, and registration occurs in the register of deeds where the land lies. Practice priority hypotheticals where a later purchaser with actual knowledge still wins by recording first, and remember that leases over three years (including renewals) need a recorded memorandum.
2Memorize the foreclosure framework: the four clerk findings under G.S. 45-21.16(d) (valid debt and holder, default, right to foreclose, notice), the 10-day notice before hearing, the 10-day de novo appeal, the upset-bid rules (10 days, 5% or $750 minimum increase under G.S. 45-21.27), and the anti-deficiency statutes (G.S. 45-21.36 fair-value offset; 45-21.38 purchase-money bar).
3Know the Good Funds Settlement Act cold: no disbursement of non-collected funds, the list of qualifying deposits (including North Carolina attorney trust-account checks), the residential one-to-four-family scope, and the damages formula (actual damages plus fees plus the greater of $1,000 or double 60-day interest). Tie it to the record-then-disburse closing sequence.
4Distinguish deed covenants by timing: present covenants (seisin, right to convey, against encumbrances) are breached at delivery, while future covenants (quiet enjoyment, warranty, further assurances) are breached only upon later disturbance by a superior title. Many essay and MCQ traps hinge on this distinction.
5Master concurrent ownership in North Carolina: survivorship is not presumed, so a joint tenancy with right of survivorship requires express language under Chapter 41, while tenancy by the entirety protects the marital home from one spouse's individual creditors. Watch for spousal-joinder issues when conveying marital or entireties property.
6For owners' associations and condominiums, separate Chapter 47F (planned communities) from Chapter 47C (condominiums): know the 30-day delinquency and 15-day notice for assessment liens (G.S. 47F-3-116), the power-of-sale-vs-judicial-foreclosure split for fine-only debts, declarant rights and declaration amendments, undivided common-element interests, and resale certificates.

Frequently Asked Questions

What is the NC State Bar Certified Specialist in Real Property Law?

It is a credential issued by the North Carolina State Bar Board of Legal Specialization recognizing attorneys with substantial expertise in North Carolina real property law. North Carolina certifies Residential Real Property and Business Real Property as subspecialties that share a common core. Certified specialists may hold themselves out as board-certified specialists and must meet ongoing CLE and recertification requirements.

Why does the exam emphasize that North Carolina is a 'pure-race' recording state?

North Carolina's Connor Act, G.S. 47-18, makes it a pure-race jurisdiction: a conveyance is not valid against lien creditors or purchasers for value until it is registered in the register of deeds, and the first party to record prevails regardless of notice. Unlike notice or race-notice states, even actual knowledge of a prior unrecorded interest does not defeat a later purchaser who records first. This rule drives priority, title-examination, and closing practice throughout the exam.

How does a power-of-sale foreclosure work in North Carolina?

North Carolina is a title-theory, deed-of-trust state. A neutral trustee holds bare legal title for the lender. To foreclose under a power of sale, the trustee files a notice of hearing with the clerk of superior court (served at least 10 days before the hearing). Under G.S. 45-21.16(d), the clerk may authorize the sale only on finding a valid debt held by the foreclosing party, default, the right to foreclose, and proper notice. The clerk's order may be appealed within 10 days for a de novo hearing, and after the sale a third party may file an upset bid within 10 days under G.S. 45-21.27.

What does the Good Funds Settlement Act require at a North Carolina closing?

Chapter 45A prohibits a settlement agent from disbursing settlement proceeds unless those proceeds are collected funds, though the agent may rely on qualifying deposits such as cashier's checks, certified checks, official bank checks, and checks drawn on a North Carolina attorney's trust account. The Act applies to transactions involving a one-to-four-family residential dwelling or a residential lot. Violations create liability for actual damages plus reasonable attorneys' fees, plus the greater of $1,000 or double the interest payable on the loan for the first 60 days after closing.

How are security deposits handled under North Carolina's Tenant Security Deposit Act?

Under G.S. 42-50 to 42-52, a residential landlord must hold the deposit in a trust account with a licensed bank in North Carolina (or furnish a bond) and notify the tenant. The deposit is capped at two weeks' rent for week-to-week tenancies, one and one-half months' rent for month-to-month tenancies, and two months' rent for longer terms. The landlord must account for and refund the deposit within 30 days, with a final accounting within 60 days if the claim cannot be determined in 30 days.

How do planned-community assessment liens work under Chapter 47F?

Under G.S. 47F-3-116, an assessment unpaid for 30 days or longer may become a lien when the association files a claim of lien with the clerk of superior court. The association must mail a statement of the amount due at least 15 days before filing. The lien is prior to other liens except those recorded earlier (such as a first deed of trust) and liens for real estate taxes. The association may foreclose the lien like a deed of trust under power of sale, except that fine-only debts must be enforced by judicial foreclosure.