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1. Social Science
2. Law
3. Civil Law
NC Real Estate MidTerm
Terms in this set (358)
Original
What is the purpose of the North Carolina Residential Property Disclosure Act?
To require sellers to provide buyers with a Residential Property and Owners' Association Disclosure
Statement for most residential properties containing one to four units.
What properties are excluded from compliance with the North Carolina Residential Property
Disclosure Act?
New construction that has never been inhabited, foreclosure sales, and any rent-to-own scenarios.
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What is the purpose of the addendum to the standard NCBA/NCAR 2-T Offer to Purchase and
Contract?
To address the majority of the information previously gathered on the Owners' Association Disclosure
for properties exempt from the Residential Property Disclosure Act.
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What is the deadline for delivering the North Carolina Residential Property Disclosure Act statement
to the buyer?
No later than the time the buyer makes an offer on the property
In what ways can the property disclosure statement be included when delivering it to the buyer?
In the sales contract, in an addendum to the contract, or in a separate document
What type of form must be used for the property disclosure statement in North Carolina?
A state-mandated form
What can be included in the property disclosure statement according to the North Carolina
Residential Property Disclosure Act?
Disclosures about the property's condition, information on owners' associations, and governing
documents
What is the NCREC Residential Square Footage Guidelines brochure about?
Defining heated living area and providing guidelines for stairs, rooms with low ceilings, and open
rooms
How does the NCREC define living area in terms of ceiling height?
Ceilings must be at least five feet tall and at least seven feet tall in half of the room
How does the NCREC recommend measuring heated living area?
Measure from exterior whenever possible; add six inches for interior measurements to include
exterior wall width
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What additional challenges may arise when measuring attached housing according to the NCREC
guidelines?
Adding six inches for common walls in townhouses or duplexes, but nothing for exterior walls in
condos
What should brokers do if there are any deviations, alterations, or changes in the measurements?
Give special mention to them
What is the definition of 'Above-Grade' space in residential square footage guidelines?
Space with living area and no earth adjacent to any exterior wall on that level.
How is 'Below-Grade' space defined in residential square footage guidelines?
Space with living area, accessible by interior stairs, and has earth adjacent to any exterior wall on that
level.
What is considered 'at' or 'on grade' space in residential square footage guidelines?
Space considered 'above-grade'.
What is the requirement of North Carolina Real Estate License Law regarding square footage
reporting?
It does not require brokers to advertise or report square footage, but if they do, it must be verifiable
and accurate.
What documents must brokers retain if they communicate square footage as of 2016?
Copies of sketches, calculations, photos, and other documents used to determine square footage for
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at least three years.
Why should brokers use guidelines when calculating square footage?
To assist in case the reported square footage is challenged, and to follow specific procedures for
measuring and reporting square footage.
What is the importance of agreeing on a rate before establishing a buyer agency agreement?
To avoid violating federal antitrust laws and to ensure clarity in the relationship between broker and
client.
How is a reasonable commission determined in the absence of a specified rate in the listing contract?
By considering the custom in a particular community, or by legal determination if a legal action arises.
What is the role of NCREC in regulating the amount of commission charged by licensees?
NCREC is prohibited by law from regulating the amount of commission charged by licensees.
What is a buyer agency agreement?
A contract between a buyer and a real estate agent outlining compensation terms and services
provided.
How can a buyer's agent be compensated?
Buyer's agents can be compensated through retainer fees paid upfront and success fees paid upon
property purchase.
What is a retainer fee in a buyer agency agreement?
An upfront payment made by the buyer to the agent when the buyer agency agreement is
established, serving as partial compensation for services.
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What is a success fee in a buyer agency agreement?
A fee due upon the signing and acceptance of an offer to purchase property, typically paid at closing.
What happens if a buyer purchases a property without involving the buyer agent?
The buyer agent may still be able to recover compensation from the buyer-client as per the terms of
the buyer agency agreement.
What is the North Carolina Commercial Real Estate Broker Lien?
A law that allows a broker with a written agency agreement to place a lien on a property to protect
their commission.
When can a broker file a lien in a sales transaction in North Carolina?
After fully performing but before closing.
When can a broker file a lien in a lease transaction in North Carolina?
Up to 90 days after tenant possession.
What is the timeframe for satisfying the broker's lien in North Carolina?
Within 18 months.
How does the North Carolina Commercial Real Estate Broker Lien compare to mechanics' liens?
It is inferior to all mechanics' liens.
What is the impact of the internet on the real estate profession?
The internet has revolutionized the real estate profession by providing buyers and sellers with access
to information about real estate, housing, financing, and law, making consumers more
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knowledgeable, innovative, and independent.
How has the internet changed consumer behavior in real estate?
The internet has led consumers to expect instant access to real estate information, causing a radical
shift in consumer behavior.
What is a Fee-for-Services Agreement?
It is an arrangement where the consumer decides which real estate services are needed and pays
the broker solely for those selected services.
What does unbundling services mean in real estate?
Unbundling services means offering real estate services in a piecemeal fashion, allowing consumers
to select and pay for only the services they require.
What are examples of services a consultant may offer to a seller in real estate?
Examples include helping prepare the property for sale, performing a comparative market analysis,
assisting with marketing, locating and screening buyers, completing offer agreements, and assisting
with closing transactions.
What are examples of services a consultant may offer to a buyer in real estate?
Examples include consulting on renting versus owning, helping with mortgage preapproval, consulting
on desired locations, visiting properties, completing offer agreements, and assisting with negotiations.
Fee-for-Services, or Limited Services, Agreement
What is a Fee-for-Services Agreement?
A compensation model where a broker charges either an hourly rate or a flat fee for specific services.
