An individual or entity must have a real estate license if the following 3 elements are present:
1. Real estate services are provided
2. The services are provided for others
3. The services are compensated transactionally (on a commission and bonus basis)
NC Real Estate license law stipulates that a person must be licensed as a real estate broker if he/she ______________
Partakes in any real estate activity (listing, sell, buy, auction, lease, etc.) for others for compensation
In NC the ownership of water and the land adjacent to it is determined by the _____________. Land adjoining navigable rivers is owned only to the banks of the river in NC.
doctrine of riparian rights.
NC provides for a limited homestead exemption for individuals from claims of creditors (35,000; $60,000 for certain unmarried individuals ages 65 or older) against a personal residence of the individual or individual's dependent.
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NC does not favor the right of survivorship for a joint tenancy. In 2009 a change was made to allow unequal ownership interests, if so desired. In NC, joint tenancy interests will be presumed to be equal unless clearly marked as unequal. The right of surv
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In NC, any conveyance to spouses by deed or by will creates a tenancy by the entirety by default unless specifically stated otherwise. A tenancy by the entirety may be terminated by the death of either spouse, divorce (leaving the parties as tenants in co
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The NC law also requires disclosure and other consumer protection measures in connection with new residential condominium unit sales in the form of public offering statements. The developer must disclose all ownership and other appropriate documents to th
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North Carolina Time Share Act
Regulates the development and sale of time-shares.
In NC, both ad valorem and special assessment tax liens valid for _______ years and _________________________
10 years, have priority over other types of liens
A property owner who applies for a building permit for improvements totaling more than $30,000 must designate an approved ________________ for project. This includes all private residential and commercial construction projects except improvements to owner
lien agent
An easement appurtenant is considered part of both the dominant and the servient lands and if either tract is conveyed to another party, the easement passes with the title. In legal terms the easement _________________. In NC an easement must be recorded
Runs with the land
In NC a property tax lien will have priority over all previously recorded liens except a previously recorded state income tax lien
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All real property in NC is subject to _____________.
Taxation
In some states, assessed value may be less than market value such as 80% of market value. The NC Machinery Act mandates that assessed value is 100% of market value
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In NC in January of each tax year all taxable real property must be listed in the county in which it is located. All listed property is assessed at its fair market value
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********In NC it is typical typical for sellers to be charged for taxes through the day of closing. Consider these three possible scenarios:
1. A settlement takes place on March 15:
2. A settlement takes place on October 20
3. A settlement takes place on October 20
As noted earlier, property taxes are liens that attach to real property as of the listing date. In other words even though property taxes are not due until September 1 of any other year, the tax lien takes effect the previous January 1
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Requirement for a valid conveyance:
- Deed must be in writing
- Grantor must have the legal capacity to execute a deed
- Grantee named with reasonable certainty must be identified
- Must be adequate words of conveyance
- Must be accurate legal description of the property conveyed
- Deed mus
Since 1999, deeds do not have to be sealed in NC to be valid. Standard deed forms may continue to have the word seal after the signature; however, it is no longer required to create a valid deed
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Kelo v City of New London decision was:
Clarifying state laws governing the power of eminent domain. Eminent domain may only be used to take a blighted parcel
- This decision is not applicable in NC
By descent (intestate succession):
Every state, including NC has a law known as a statute of descent and distribution. When a person dies intestate the decedent's real estate and personal property pass to the decedents heirs according to this statute.
In NC, if spouses own property as tenants by the entirety, that property cannot pass by will. Neither spouse can disinherit the other spouse by will.
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In NC the required period of continuous possession varies widely depending on the circumstances. If the adverse possessor is trying to acquire privately owned property and has color of title (a faulty document that purports to give the adverse possessor t
7 years
NCs Marketable Title Act provides that if a chain of title can be traced back for 30 years and no other claim has been recorded during that time, the title becomes a marketable title. Any conflicting claims pre-dating the 30 year chain of title may be ext
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NC is considered an approved attorney state. Which means that title searches are usually performed by an attorney rather than by a title insurance company.
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All sellers of real property in NC must pay an excise tax that is based on the sales price of the property
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Zoning powers are conferred on municipal governments by NC's enabling act through the General Assembly. There are no nationwide and statewide zoning ordinances; zoning is _________ in nature.
local
NC General Assembly has enacted legislation that allows a municipality to regulate development in areas adjacent to, but not within, the _________________. The area outside the incorporated limits but subject to the zoning restrictions of a municipality a
Corporate limits
In NC an area can be zoned strictly for aesthetic or appearance considerations. Therefore, a property's value can be increased or decreased for the public good of an aesthetically-pleasing neighborhood.
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In NC state law defines the term subdivision as "all division of a tract or parcel of land into two or more lots, building sites, or other divisions for the purpose of sale or building development and includes all division of land involving the dedication
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Subdivision Streets Disclosure Law
A developer of most new subdivisions must have streets approved, based on construction standards set by the NC Department of Transportation and must declare the streets to be for public or private use
NC has enacted a series of statewide building codes containing requirements as as to construction standards, and the primary purpose is ___________
safety
The NCBA/NCAR-2-T offers to purchase and contract suggests that the purchaser should review __________________ if any, plus any governing documents for the subdivision or any established owners' association as part of the buyers' due diligence
restrictive covenants
*********Under the NC Real estate license law, a licensee has a duty to avoid any misrepresentation regarding permitted land use, to recognize potential land use problems and an affirmative duty to discover and disclose any such problems:
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Though NC is a caveat emptor state where buyers should "beware", buyers can trust real estate professionals to be _____________________________________.
honest and fair in their dealings
NC real estate license laws require that brokers give accurate copies of all documents to all parties affected by them and keep of such documents on file for ________________
3 years
Duties of an agent to a third party come from 3 sources:
1. NC License law
2. NC Unfair or Deceptive Trade Practices Act
3. Common law of agency as interpreted by court opinions
Any agent who breaches an agents duties to either the principal or a third party must bear the consequences of that breach. The consequences are:
- Disciplinary action by NCREC
- A civil action in court brought by the injured party
- Criminal prosecution brought by the district attorney
In NC a broker is defined as a person who:
Licensed to list, lease, buy, exchange, auction, negotiate, or sell interest in real property for others and to charge a fee for services
In NC implied agency agreements are __________. All agency agreements must be in writing.
illegal
In NC real estate law mandates that an agency agreement must be in writing in order for a broker to be entitled to _________________.
Compensation
In NC the key to lawful dual agency is that all parties must be _______________________________ to the broker representing both of them in the same transaction
Informed and consent
If a firm wants to practice the designated dual agency option the BIC must establish a comprehensive written company policy on designated agency and this policy must comply with NCREC rules. Firms electing to practice designated dual agency must specify w
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Any licensed employees of the property manager/broker become subagents of the property owner. Prospective tenants are customers (or third parties) of the property, who owes certain duties to the tenants imposed NCREC fair housing laws and landlord/tenant
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NC requires that real estate agents disclose their agency status to both ____________________ in every real estate transaction
buyers and sellers
An agency agreement for brokerage services creates a special agency relationship between the principal and the agent where the agent is authorized to represent the principal and the principal and the principal's property to third parties, including submit
1. Be signed by all parties
2. Include the broker's real estate license number
3. Have a termination date
4. Contain the prescribed non-discrimination provision