NC Real Property Specialist key terms

An ownership interest in land with no fixed expiration date, such as a fee simple or life estate. It contrasts with leasehold interests, which end at a set time.

The most complete form of land ownership, lasting indefinitely and freely inheritable, with no conditions attached. The owner holds all rights not reserved by government or others.

A freehold interest lasting only for the lifetime of a named person. The holder may use the property but generally cannot pass it to heirs.

A future interest held by a person who will own the property once a prior estate, such as a life estate, ends. It is created in the same document that created the prior estate.

The future interest a grantor keeps when transferring less than full ownership, so the property returns to the grantor or the grantor's heirs when the lesser estate ends.

A right to use another's land that benefits and travels with a neighboring parcel. It passes automatically when either the benefited or burdened property is sold.

A right to use another's land that benefits a person or entity rather than a neighboring parcel. It is not tied to ownership of adjacent property.

Any claim, lien, easement, restriction, or other burden that limits the owner's use of land or reduces its value. Encumbrances do not necessarily prevent transfer of title.

A private limitation written into deeds that controls how land may be used, such as minimum house size or setback rules. Enforcement is typically by neighbors or a homeowners association.

Local government regulation that divides land into districts and specifies permitted uses, density, and dimensional standards. Changes usually require a public process such as a rezoning or variance.

A property use that lawfully existed before a zoning ordinance was adopted but does not meet current rules. It may generally continue, subject to limits on expansion or interruption.

An administrative approval allowing a property owner to depart from a specific zoning standard because of unique hardship. It does not change the underlying zoning district.

The government's power to take private property for a public purpose upon payment of just compensation. The underlying authority is eminent domain.

The government's authority to regulate private property to protect public health, safety, and welfare, exercised through tools like zoning, building codes, and health rules. It does not require compensation.

A claim against property that secures payment of a debt or obligation. A lien can be voluntary, such as a mortgage, or involuntary, such as a tax or judgment lien.

A statutory claim filed by a person who supplied labor or materials for improvements to real property and was not paid. Priority and filing deadlines are set by state law.

A security instrument used in North Carolina in which the borrower conveys title to a trustee to hold for the lender until the debt is repaid. Foreclosure is conducted by the trustee.

The written contract in which a borrower promises to repay a loan under stated terms, including interest rate, payment schedule, and default consequences. The note is separate from the security instrument.

A clause in a deed of trust authorizing the trustee to sell the property without going to court if the borrower defaults. North Carolina foreclosures are typically conducted this way.

The legal process by which a lender or trustee enforces a defaulted loan by selling the pledged property to satisfy the debt. State law governs notice, sale, and redemption rights.

A court order holding a borrower personally liable for the shortfall when a foreclosure sale brings less than the amount owed. Availability and limits depend on state law.

The gradual repayment of a loan through regular installments that cover both interest and principal. A fully amortized loan is paid off at the end of its term.

The loan amount divided by the property's appraised value or purchase price, expressed as a percentage. Lenders use it to gauge risk and set insurance or pricing requirements.

An independent, written opinion of a property's market value prepared by a qualified appraiser using accepted approaches and market evidence. Federally related loans require licensed or certified appraisers.

A valuation method that estimates value by analyzing recent sales of similar properties and adjusting for differences in features, condition, location, and terms of sale.

The reasonably probable, legally permissible, physically possible, and financially feasible use that gives a property its greatest value. It anchors most valuation analyses.

The most probable price a property should bring in a competitive, open market under fair sale conditions, with both parties acting knowledgeably and without undue pressure.

A conveyance in which the grantor guarantees title against defects arising both during and before the grantor's ownership. It offers the broadest set of covenants to the buyer.

A conveyance in which the grantor warrants title only against defects created by or through the grantor, not against earlier problems. Common in commercial and foreclosure transfers.

A conveyance that transfers whatever interest the grantor may hold without any warranty of title. The grantee bears the risk of unknown defects or competing claims.

An examination of public records to trace ownership and identify liens, easements, and other encumbrances affecting a property. Results support the title commitment and closing.

A policy indemnifying an owner or lender against covered title defects that existed before the policy date. It is based on a search and protects against hidden claims.

Funds a buyer delivers on signing a purchase contract to show good faith and create a remedy if the buyer defaults. Handling and refund rules are set in the contract and state law.

A negotiated window during which the buyer may inspect the property and investigate title, financing, and condition, and may terminate for stated reasons without losing the deposit.

A contract condition that must be satisfied for the transaction to proceed, such as financing, appraisal, or inspection. Failure of an unmet contingency can allow cancellation.

The core elements of a binding contract: one party proposes terms and the other agrees to them exactly. A counteroffer rejects the original offer and starts a new one.

A fiduciary arrangement in which a broker acts on behalf of a principal with loyalty, disclosure, confidentiality, and obedience. North Carolina requires written agency agreements.

The heightened legal obligation an agent owes a principal, including loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care. Breach can trigger liability and license discipline.

A situation in which one broker represents both buyer and seller in the same transaction. North Carolina requires informed written consent and imposes limits on the broker's role.

A tenant's possessory interest in real property for a limited period under a lease. It is personal property and may be sold or devised in many circumstances.

Money a tenant pays a landlord to cover unpaid rent or damage beyond normal wear. North Carolina statutes govern account handling, notice, and return deadlines.

The legal process a landlord uses to remove a tenant who has breached the lease or stayed past its term. Self-help lockouts are generally prohibited; court action is required.

Compensation a broker earns for services under an agency agreement, typically a percentage of the sale price. It is negotiable and must be set out in the written agreement.

A written contract between a seller and a broker authorizing marketing of the property and setting terms, duration, and compensation. North Carolina requires it to be in writing.

The North Carolina agency that licenses brokers and firms, adopts rules, investigates complaints, and disciplines licensees. It also administers continuing education and trust account requirements.

Required periodic instruction that North Carolina licensees complete to renew a license, including a mandatory update course and elective hours set by the Commission.

A separate bank account in which a broker holds client funds such as deposits and rents. North Carolina rules govern commingling, recordkeeping, and disbursement.