NC Real Property Specialist flashcards
NC Real Property Specialist · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Fixture test
- A fixture is personal property that has become realty, determined by annexation, adaptation to the land's use, and the intention of the party who attached it.
- Race-notice recording
- A recording statute under which a later purchaser prevails only if it records first and takes without actual, constructive, or inquiry notice of the prior conveyance.
- Easement by necessity
- An implied easement arising when a parcel is landlocked after a common grantor severs the land, requiring strict necessity rather than mere convenience.
- Fee simple determinable
- An estate that ends automatically when a stated event occurs, leaving the grantor a possibility of reverter; the grantor may reenter or reclaim title.
- Tenancy in common
- Concurrent ownership with undivided interests and no right of survivorship; each co-tenant may convey or devise its share independently.
- Tenancy by the entirety
- A spousal concurrent estate with right of survivorship; neither spouse may convey the property alone, and it is available only to married couples.
- Life estate
- An estate measured by a named person's life; the life tenant owes taxes, interest, and ordinary repairs, while the remainderman holds the future interest.
- Joint tenancy
- Concurrent ownership requiring the four unities of time, title, interest, and possession, and carrying a right of survivorship among the co-tenants.
- General warranty deed
- A deed containing six covenants, including seisin, right to convey, against encumbrances, quiet enjoyment, warranty, and further assurances, from the grantor.
- Quitclaim deed
- A deed that conveys whatever interest the grantor may have, with no warranties of title and no covenants against encumbrances.
- Marketable title
- Title free of encumbrances and reasonably free from doubt, such that a prudent buyer would accept it; it does not protect against hidden defects.
- Adverse possession period
- In North Carolina, a claimant must possess for 20 years under color of title or 30 years without color of title, and pay taxes on the land.
- Statute of frauds
- A rule requiring a writing signed by the party to be charged for real property sales, leases exceeding three years, and certain land-related promises.
- Earnest money
- A deposit held in trust by the listing or buyer's agent, accounted for at closing or termination, and subject to the contract's stated remedy.
- Contingency clause
- A contract provision making performance conditional on a stated event, such as financing, inspection, or appraisal, with a deadline and remedy.
- Specific performance
- A remedy compelling a breaching party to perform the contract; it is available for realty because each parcel is considered unique.
- Deed of trust
- A three-party security instrument in which a trustee holds title and may foreclose nonjudicially under a power of sale; common in North Carolina.
- Loan-to-value ratio
- The loan amount divided by the lesser of appraised value or purchase price, expressed as a percentage; it determines down payment and mortgage insurance.
- PITI
- Principal, interest, taxes, and insurance; the monthly housing expense used in qualifying ratios and escrow analysis.
- Upset bid period
- In North Carolina, a 10-day period after a foreclosure sale during which a higher bid may be submitted before the sale is confirmed.
- Sales comparison approach
- A valuation method that adjusts comparable sales to the subject; superior comparables are adjusted downward and inferior comparables upward.
- Capitalization rate
- A rate used in the income approach; value equals net operating income divided by the capitalization rate, reflecting risk and return.
- Highest and best use
- The use that is legally permissible, physically possible, financially feasible, and maximally productive for a parcel of land.
- External obsolescence
- A loss in value caused by factors outside the property, such as neighborhood decline or market conditions, generally incurable by the owner.
- Dual agency
- A relationship in which one firm represents both buyer and seller; it requires written consent and limits advocacy for either party.
- Fiduciary duties
- Duties owed to a principal, including loyalty, obedience, disclosure, confidentiality, reasonable care, and accounting for funds.
- Working with Real Estate Agents Disclosure
- A North Carolina form that must be provided at first substantial contact to explain agency relationships and the licensee's role.
- Provisional broker
- A newly licensed North Carolina broker who must work under a supervising broker and complete three 30-hour postlicensing courses within 18 months.
- Continuing education
- North Carolina requires 8 hours annually, including the 4-hour Update course, for license renewal by June 30 each year.
- Trust account rules
- Earnest money and tenant deposits must be held in a trust account, reconciled monthly, and never commingled with the firm's operating funds.
- Security deposit return
- In North Carolina, a landlord must return a residential security deposit within 30 days of termination, or 60 days if the lease so states.
- Net operating income
- Effective gross income minus operating expenses, used in the income approach and in calculating a property's capitalization rate.