North Carolina — Property Management — North Carolina Real Estate — State Law Practice Test

This North Carolina Real Estate — State Law North Carolina — Property Management practice set has 14 practice questions based on the official exam materials, each with an instant explanation.

Sample questions

Three questions from the North Carolina — Property Management bank with the correct answer and an explanation. The practice quiz above draws 14 questions at random from the same bank.

1. Under the North Carolina Tenant Security Deposit Act, what must a landlord (or the landlord's broker) do with a residential tenant's security deposit?

   • Hold it in a trust/escrow account in a NC bank or savings institution, or secure it with a bond from a NC-licensed insurer — Correct answer
   • Deposit it into the landlord's personal operating account and use it freely until the tenant moves out
   • Forward it to the North Carolina Real Estate Commission, which holds all residential deposits statewide
   • Convert it to a non-refundable fee that becomes the landlord's property the day the lease is signed

   Explanation: The NC Tenant Security Deposit Act requires the deposit to be safeguarded for the tenant — it must be deposited in a trust/escrow account in a licensed/insured North Carolina bank or savings institution, OR the landlord may furnish a bond from an insurance company licensed in NC. The landlord cannot simply pocket or commingle the money as if it were personal funds. Tenant Security Deposit Act（租户押金法）: deposit held in a NC trust/escrow account or secured by a bond. (G.S. §42-50)

   Handbook: North Carolina Property Management — Tenant Security Deposit Act, trust account or bond (G.S. §42-50)

2. Under the NC Tenant Security Deposit Act, what is the maximum security deposit a landlord may demand for a MONTH-TO-MONTH residential tenancy?

   • One and one-half (1.5) months' rent — Correct answer
   • Two months' rent
   • Two weeks' rent
   • There is no statutory cap; the landlord may charge any amount

   Explanation: The Act caps the deposit by the length of the tenancy term. For a month-to-month tenancy the cap is one and one-half (1.5) months' rent. (By contrast, week-to-week is capped at two weeks' rent, and a term longer than month-to-month is capped at two months' rent.) Charging more than the statutory cap violates the Act. Security-deposit cap（押金上限）: month-to-month = 1.5 months' rent. (G.S. §42-51)

   Handbook: North Carolina Property Management — security-deposit cap, month-to-month (G.S. §42-51)

3. Under the NC Tenant Security Deposit Act, what is the maximum security deposit for a residential lease with a fixed term LONGER than month-to-month (for example, a one-year lease)?

   • Two months' rent — Correct answer
   • One and one-half (1.5) months' rent
   • Six months' rent
   • Two weeks' rent

   Explanation: For any tenancy with a term greater than month-to-month, the deposit is capped at two (2) months' rent. The graduated caps are: two weeks' rent (week-to-week), 1.5 months' rent (month-to-month), and two months' rent (longer than month-to-month). A one-year lease therefore tops out at two months' rent. Security-deposit cap（押金上限）: term longer than month-to-month = 2 months' rent. (G.S. §42-51)

   Handbook: North Carolina Property Management — security-deposit cap, fixed term (G.S. §42-51)