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The North Carolina State Bar Specialization

Real Property Law – Exam Review
Real Property Law Specialization Examination

• 6 – 9 hours long (two 3-hour sessions if certifying in residential or commercial, three 3-hour sessions if certifying in both residential and commercial).
  
  

• 9 a.m. to 12 p.m. and 2 p.m. to 5 p.m.

Morning Session – General Real Property Law

• Includes objective questions regarding core knowledge of real estate law and recent case and statutory legal developments.
  
  

• Includes actual title abstract with recorded documents – focus on review and analysis of title documents, and preparing a preliminary title report on NCBA form.

Two-hour lunch break

Afternoon session – Residential Real Property Law

• Objective questions regarding residential real property law, and review and comment on residential real estate documents, such as purchase contract, deed of trust, listing agreement, lease, access easement, and/or neighborhood restrictive covenants.

OR

Afternoon session – Commercial Real Property Law

• Review and comment on commercial real estate documents, which may include purchase contract, lease, loan commitment, SNDA, Deed of Trust, REA and/or loan guaranty.
  
  

• For applicants taking both the residential and commercial sections, the Residential section will be given during the afternoon; the Commercial section will be given the following day.
  
  

• All questions are allocated “points” and require responses that demonstrate accuracy, clarity, sound reasoning, recognition of the problem presented, knowledge of the principles of law involved and correct application of those principles. Full or partial credit for answers may be given.

In order to become a Residential or Commercial (or both) specialist, the applicant must pass BOTH the title abstract and the multiple choice sections of the General Real Property Law morning exam. IN ADDITION TO passing the Residential and/or Commercial examination section(s) in order to be certified in that area.

The Real Property Specialty Committee wants applicants to be aware of the exam’s objectives:

• To identify whether an applicant knows and can effectively apply important NC real estate law concepts; and
  
  

• To determine that an applicant has successfully incorporated subject matter knowledge into the applicant’s practice.

Therefore, to the extent the applicant’s regular practice in the particular area involves the types of analysis above, the exam should require no additional preparation beyond the practice requirements and the CLE requirements for applicants for certification, other than to refresh the applicant’s knowledge of recent case law and statutory developments. The below recommended resources may help to prepare for the exam. These resources may also help with review and updating skills in related areas, such as purchase contracts or financing documents.

1. Case law updates on NC Supreme Court, NC Court of Appeals and NC Bankruptcy Court cases affecting real estate for current and past 3 years.
   
   
2. NC Legislation affecting real property law for current and past 3 years.
   
   
3. NC Bar Association Real Property Section continuing legal education presentations for current and past 3 years, especially the bi-annual fall alternating advanced and fundamentals courses, the bi-annual February alternating commercial and “hot topics” courses and the Real Property Section Annual Meeting.

The North Carolina State Bar Handbook defines the subject matter in real property law in the following way:

Real Property Law-Residential Transactions – The practice of law dealing with the acquisition, ownership, leasing, financing, use, transfer and disposition, of residential real property by individuals;

(A) title examinations, property transfers, financing, leases, and determination of property rights;

(B) the acquisition, ownership, leasing, financing, use, transfer, and disposition of residential real property by individuals;

Real Property Law-Business, Commercial, and Industrial Transactions – The practice of law dealing with the acquisition, ownership, leasing, management, financing, development, use, transfer, and disposition of business, commercial, and industrial real property.

(A) title examinations, property transfers, financing, leases, and determination of property rights;

(B) the acquisition, ownership, leasing, management, financing, development, use transfer, and disposition of residential, business, commercial, and industrial real property.

Subject Matter – The examination may cover the applicant’s knowledge and application of the law in the following topics regularly encountered in representation of clients, examination of titles and drafting of documents, as they relate to North Carolina real property law, among others:

• Completion and/or analysis of applicable forms, including title opinions, deeds, leases, deeds of trust, mechanics’ lien affidavits.
  
  

• Ownership interest, including concurrent and future interests.
  
  

• Will, trust, intestate, guardianship (minors and incompetents), powers of attorney and fiduciary law.
  
  

• Law of business organization.
  
  

• Family law.
  
  

• Condominium, planned community, restrictions, plats and owners’ associations.
  
  

• Foreclosures, partitions and other special proceedings.
  
  

• RESPA.
  
  

• Trust Accounting.
  
  

• Ethics.