North Carolina · state portion

North Carolina real estate law vocabulary

15 terms, defined plainly. Where a term is commonly confused with another, the definition says so — that confusion is usually the wrong answer.

NC Real Estate Commission

Nine members; regulates and disciplines licensees to protect the public; administers the Real Estate License Law (Ch. 93A) and the Real Estate Education and Recovery Fund.

Chapter 93A

North Carolina's Real Estate License Law — the statute governing licensing and conduct, enforced by the NC Real Estate Commission.

Provisional broker

NC's entry-level license — there is NO 'salesperson' in NC. A provisional broker works under a broker-in-charge and removes provisional status via 90 hours of postlicensing education.

Broker-in-charge (BIC)

The broker responsible for a firm/office; must have 2 years' full-time experience plus the BIC course; supervises provisional brokers and trust funds.

Working With Real Estate Agents Disclosure

NC's required agency disclosure, given at first substantial contact. It is a DISCLOSURE, not a contract — and not the Texas IABS or PA Consumer Notice.

Due diligence fee

Paid by the buyer TO THE SELLER under the NC Offer to Purchase (Form 2-T); generally NON-refundable — it buys the buyer the due-diligence period.

Due diligence period

The window in which an NC buyer may terminate for ANY reason and get the EARNEST MONEY back (but not the due-diligence fee).

Oral buyer agency (NC)

Permitted in NC UNTIL the buyer is ready to make an offer — at that point the buyer-agency agreement must be in writing.

Dual & designated agency (NC)

Both permitted with written consent. Designated agency lets the BIC appoint separate agents to each party within a dual-agency firm.

Attorney-conducted closing

NC real estate closings are handled by a licensed attorney — not by the broker or a title/escrow company alone.

Trust account (NC)

Client monies go into the firm's trust/escrow account; commingling and conversion are prohibited; transaction records are kept 3 years. A provisional broker delivers funds to the BIC.

Excise (transfer) tax

NC excise tax is $1.00 per $500 of value, paid by the SELLER at closing.

Recovery Fund (NC)

The Real Estate Education and Recovery Fund reimburses a consumer holding an unsatisfied judgment against a licensee for fraud or misrepresentation.

NC license eligibility

18+, complete the 75-hour Broker Prelicensing Course, pass both exam sections (scaled score 75 each) within one 180-day window, affiliate under a BIC. Renew annually by June 10.

Residential Property & Owners' Association Disclosure

NC's mandatory seller disclosure of known property conditions and HOA information; NC also requires a mineral/oil/gas rights disclosure.