NC Statues & Laws

Question 1

1. Governs the distribution of estates out of probate
2. Utilized when someone dies intestate (without a will)

Answer 1

Statute of Intestate Succession

Question 2

• Requires public offering statement prior to sale
• Public offering statement contains disclosures to be made to consumers
• Consumers have a 7-day right of rescission

Answer 2

Condominiums Act

Question 3

• Applies to 5 or more time periods over a period longer than 5 years
• Must get certificate of registration for the project
• Requires a real estate license
• Developer must register purchase within 6-45 days (purchaser may register)
• Must have an independent escrow agent with bank located in NC
• Borrower get a public offering statement (obligations of the purchaser, dates of availability of amenities, specific terms of agreement, notice of right to cancel)
• Purchaser has 5-day right to cancel
• Must refund all money within 30 days
• Commission may fine developer $500
• Additional securities license required

Answer 3

NC Timeshare Act

Question 4

• Grants priority to contractors, subcontractors, suppliers
• Must record within 120 days of work completion
• Must file lawsuit to foreclose within 180 days of work completion
• Effective date of the lien is the date the work started

Answer 4

Mechanic’s Lien Statute

Question 5

• Governs real estate taxes
• Sets an octennial appraisal requirement (8 years)
• Horizontal adjustments can occur every 4 years
• Rates adjust every year

Answer 5

NC Machinery Act

Question 6

• Protects home equity from general judgment creditors
• Requires 2 years of residency
• Doesn’t apply to mortgages or taxes (judgment creditors)
• Protects $35K/person and $60K for anyone over 65

Answer 6

NC Homestead Exemption Act

Question 7

• Governs a division of land into parcels of two or more
• Exempts lots of 10 acres or more
• Exempts a single owner when dividing a lot of up to 2 acres into 3 lots

Answer 7

NC Subdivision Statute

Question 8

• Must disclose whether streets are public or private
• Must disclose who maintains the streets

Answer 8

Mandatory Street Disclosure Law

Question 9

• Transfer tax on real estate transfers
• Round up to the nearest $500
• Tax is $1 for each $500 of value
  (Sale price / $500 = Excise Tax (round up))

Answer 9

Excise Tax Statute

Question 10

• Requires recording of certain documents
• DREAMOIL: Deeds, Restrictive Covenants, Easements, Assignments, Mortgages, Options, Installment Land Contracts, Leases longer than 3 years

Answer 10

Conner Act

Question 11

• Requires contracts for the exchange of real estate to be in writing
• DREAMOILS: Deeds, Restrictive Covenants, Easements, Assignments, Mortgages, Options, Installment Land Contracts, Leases longer than 3 years, and Sales Contracts

Answer 11

NC Statute of Frauds

Question 12

• Confers zoning power on municipalities and local authorities

Answer 12

Enabling Act

Question 13

• Seller must record within 5 days of execution
• Buyer has 3-day cancellation period
• Buyer must be given 30 days to cure default prior to foreclosure

Answer 13

NC Land Installment Contracts

Question 14

• Fresh batteries at start of tenancy/tenant replaces during the lease
• Maximum security deposits (1. Week-to-Week=Two weeks; 2. Month-to-Month=1.5 month; 3. More than a month=two months)
• Return deposit 30 days, no later than 60
• No deposits on assistive animals
• No self-help (landlord’s breach is constructive eviction)

Answer 14

NC Landlord Tenant Security Deposit Act & Property Management

Question 15

• Property utilized for vacation purposes
• Anything less than 90 days must be in writing
• Applies to landlords, not just licensees
• Travel agent referral fee allowed

Answer 15

NC Vacation Rental Act of 2000

Question 16

• Attorney may not distribute any funds until recording
• Recording is not the same as settlement
• All monies in excess of $5000 must be verified
• Brokers responsible for accuracy of CD
• Brokers must deliver CD within 3 days of closing

Answer 16

NC Good Funds Settlement Act

Question 17

• Living area is heated w/ a conventional source and finished
• Measure exterior walls or interior and add 6” for each wall
• Shared walls: measure interior and add 6” for that wall
• May reasonably rely on the measurements of listing agents, other professionals (appraiser)
• Never rely on property owner, tax records, documents from earlier transaction
• Don’t include external chimney space
• Count stairs as part of square footage for both floors
• One-half of the room must have at lease 7’ ceiling to count the room
• In sloped ceiling rooms, start counting at 5’ height
• Pipes and ductwork must provide height of at least 6’4” to count area
• Include “bonus” rooms if accessible through living area
• Include furnace room if accessible through living area
• Include storage if accessible through living area and heated
• Condominiums do not include wall thickness of common walls

Answer 17

Residential Square Footage Guidelines