NC Real Estate cheat sheet

Agency is created by express agreement, implication, or ratification; a listing or buyer-agency agreement should state duties, term, compensation, and agency type.

A valid real property sale contract requires offer, acceptance, consideration, competent parties, lawful purpose, and a writing satisfying the statute of frauds.

General warranty deed covenants are seisin, right to convey, against encumbrances, quiet enjoyment, warranty, and further assurance; a special warranty deed limits warranties to the grantor's ownership period.

Recording a deed or lien gives constructive notice to later parties; actual notice is direct knowledge, and inquiry notice arises from facts prompting reasonable investigation.

Fair Housing Act protected classes are race, color, religion, sex, national origin, familial status, and disability; steering, blockbusting, and redlining are prohibited.

LTV = loan amount ÷ property value; points = 1% of loan amount; down payment = purchase price minus loan amount.

NOI = effective gross income minus operating expenses, excluding debt service, income taxes, depreciation, and capital improvements; cap rate = NOI ÷ value.

Proration formula: annual expense ÷ 365 × days allocated; use the agreed closing-date convention and consistent debit/credit entries.

North Carolina licenses real estate brokers, not salespersons; initial licensees are provisional brokers and must work under a broker-in-charge while completing 90 hours of postlicensing education within three years.

Prelicensing consists of the 75-hour broker prelicensing course plus the North Carolina licensing exam; continuing education is 8 hours annually, including the 4-hour Update, due June 10.

The Working with Real Estate Agents Disclosure must be given at first substantial contact; dual agency requires informed written consent from both buyer and seller.

Trust funds may not be commingled with broker operating funds; the broker-in-charge is responsible for trust accounts, records, and disbursement according to contract or written agreement.

The Residential Property and Owners' Association Disclosure Statement is required for most 1-4 unit resale properties, subject to statutory exemptions; late delivery can give the buyer a 3-day written termination right.

Advertising must identify the licensed firm name, avoid misleading claims, and not advertise a property without owner consent; the broker-in-charge must supervise affiliated brokers' advertising.

Commission discipline can include reprimand, suspension, revocation, denial, or civil penalties for license law and Commission rule violations.

Property management by a broker requires safeguarding owner and tenant funds in trust and keeping records subject to Commission inspection.