NC Real Estate flashcards
NC Real Estate · 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.
- Agency relationship
- A fiduciary relationship in which a broker acts on behalf of a client, owing duties such as loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care.
- Fiduciary duties
- Broker's duties to client include loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care; these exceed duties owed to customers.
- Dual agency
- A broker represents both buyer and seller in same transaction; requires informed written consent from both parties and limits confidentiality between them.
- Statute of frauds
- Legal rule requiring real property sale contracts and leases longer than one year to be in writing and signed by parties to be enforceable.
- Marketable title
- Title reasonably free from liens, encumbrances, and defects that would allow a reasonable buyer to refuse ownership; may be shown by title search or title insurance.
- General warranty deed
- Deed containing covenants of seisin, right to convey, against encumbrances, quiet enjoyment, warranty, and further assurance, covering grantor's entire ownership period.
- Special warranty deed
- Deed in which grantor warrants title only against defects arising during grantor's ownership, not against earlier title defects.
- Constructive notice
- Legal notice presumed from public records, such as recorded deeds and liens, whether or not a party actually saw the record.
- Adverse possession
- Method of acquiring title by open, notorious, hostile, continuous, and exclusive possession for statutory period, sometimes plus payment of taxes.
- Easement appurtenant
- Right to use neighboring land that benefits the dominant parcel and burdened the servient parcel; it transfers with the benefited property.
- LTV ratio
- Loan-to-value ratio equals loan amount divided by property value or purchase price, expressed as percentage; higher ratios generally increase lender risk.
- Points
- Loan fees equal to one percent of loan amount; discount points are paid to lender to reduce interest rate or improve loan terms.
- Cap rate
- Capitalization rate equals net operating income divided by property value; used to estimate value by dividing NOI by market cap rate.
- NOI
- Net operating income equals effective gross income minus operating expenses, excluding debt service, income taxes, depreciation, and capital improvements.
- Fair Housing Act
- Federal law prohibiting discrimination in sale, rental, advertising, and financing based on race, color, religion, sex, national origin, familial status, or disability.
- Blockbusting
- Illegal practice of inducing panic selling by telling homeowners that members of a protected class are moving into the neighborhood.
- Provisional broker
- North Carolina initial broker licensee who must work under a broker-in-charge and complete 90 hours of postlicensing education within three years to become non-provisional.
- Broker-in-charge
- Licensed broker designated by a firm to supervise affiliated brokers, maintain trust accounts and records, and ensure compliance with North Carolina license law and Commission rules.
- Postlicensing education
- North Carolina requirement for provisional brokers: three 30-hour courses, totaling 90 hours, completed within three years of licensure.
- Continuing education
- North Carolina brokers must complete eight hours of Commission-approved education annually, including the four-hour Update course, by June 10.
- WWREA disclosure
- North Carolina Working with Real Estate Agents Disclosure explaining agency options; it must be given at first substantial contact, before confidential information is shared.
- First substantial contact
- Point when a consumer starts discussing real estate needs or finances with a broker; North Carolina agency disclosure is required at this stage.
- Dual agency consent
- North Carolina dual agency is permitted only with informed written consent of both buyer and seller, and the broker must treat both equally.
- Trust account commingling
- Illegal mixing of client trust funds with broker's personal or operating funds; North Carolina requires trust funds to be held separately and accounted for.
- RPOADS
- North Carolina Residential Property and Owners' Association Disclosure Statement used for most resale residential property; sellers disclose known defects and association information.
- RPOADS exemption
- Certain North Carolina transfers, such as some new construction, foreclosures, gifts, and transfers between co-owners, may be exempt from the residential disclosure statement requirement.
- Buyer rescission period
- If a North Carolina seller provides the residential disclosure statement after the offer, buyer may terminate by written notice within three days after receipt.
- Earnest money trust
- North Carolina earnest money held by broker must be deposited and maintained in a trust account, with disbursement according to contract or written agreement.
- Commission civil penalty
- North Carolina Real Estate Commission may impose civil penalties for license law or rule violations in addition to reprimand, suspension, or revocation.
- Advertising firm name
- North Carolina real estate advertising must identify the firm's licensed name; misleading advertising and advertising property without owner consent are prohibited.
- Property management trust
- In North Carolina, a broker managing rental property must safeguard tenant and owner funds in a trust account and keep records available for Commission inspection.
- License revocation
- Commission action that cancels a North Carolina broker license; grounds include fraud, misrepresentation, trust fund misuse, and violation of Commission rules.