Property Management and Leasing
This domain tests lease creation, landlord-tenant rights, security deposits, and management responsibilities under North Carolina law. Expect questions on trust funds, habitability, and Fair Housing.
Core rules
- A lease may be written or oral, but leases for more than three years must be in writing under North Carolina law. Lease types include gross, net, and percentage leases; residential and commercial leases carry different duties.
- The landlord must maintain habitable residential premises under the Residential Rental Agreements Act. Retaliatory eviction is prohibited.
- Residential security deposits are held in trust and may not exceed two months' rent. The landlord must account for and return the deposit within 30 days after the tenancy ends, with an itemized statement for deductions. Normal wear and tear cannot be charged.
- A written management agreement should define authority, fees, and trust account handling. Fair Housing applies to advertising and tenant screening. Eviction requires a summary ejectment proceeding; self-help eviction is prohibited.
Worked example
A manager receives a $1,200 security deposit. It must go into the trust account, not the owner's operating account. At move-out, the landlord must provide an accounting and refund the balance within the statutory period after the tenant vacates. Damage beyond normal wear and tear may be deducted with documentation; if damage exceeds the deposit, the landlord may claim the difference.
Traps that cost marks
Treating deposits as rent; missing the 30-day accounting deadline; using self-help eviction; ignoring Fair Housing in advertising; and failing to put management authority in writing.