NC REAL ESTATE 101

exclusion

events that are not covered by an insurance policy

exclusive agency listing

an agreement in which the seller has an exclusive relationship with a broker but retains the right to sell the property to named prospects

exclusive buyer agency agreement

an agreement in which the buyer has an exclusive relationship with one broker

exclusive right-to-sell listing

an agreement in which the seller guarantees the named broker receives a commission if the property is sold, regardless of who brings the buyer

executed contract

a contract in which all terms have been fulfilled by all parties

executory contract

a contract that has not yet been fully performed (both sides have not yet completed their obligations)

express authority

authority derived from an agency relationship that is created either orally or in writing where the principal explicitly appoints the agent to act on their behalf

express contract

an oral or written contract in which the parties explicitly state or express their intentions and their expectations regarding the contract and the exchange of promises

external obsolescence

loss of property value caused by negative forces outside the property which are beyond the control of the owner (unfavorable changes in the environment or market)

Fair Housing Act of 1968

a federal law that prohibits discrimination in housing based upon race, color, religion, or national origin and was amended to include sex, disability, and familial status

redlining

the illegal act of a lender refusing to issue mortgages in a specific area

quitclaim deed

a type of deed that conveys any interest, title, or right to a parcel of land the grantor has at the time the deed is executed

promissory note

a negotiable financial instrument that is evidence of a debt and a promise to pay that debt

blockbusting

the illegal act of causing owners to sell their homes by creating fear that members of a protected class are moving into the area; aka panic peddling

Civil Rights Act of 1866

under this Act, it is, without exception, illegal to discriminate in housing on the basis of race or color; became enforceable after Jones v. Mayer (1968)

cost approach

a method of estimating the value of a property by determining how much it would cost to replace the building or other improvements, minus the cost of depreciation, plus the value of the land itself

income capitalization approach

method of estimating the value of a property by applying a rate of return to the net income it produces

police Power

the government right to regulate and restrict land use in order to protect the public; right includes the power to enforce zoning and building codes

eminent domain

the power of government to seize private property for public use; government must pay property owner just compensation for exercising power

escheat

the legal doctrine by which the decedent’s property will pass to the state without their consent if that individual dies without a will, a surviving spouse, lineal descendants, or other known heirs

probate

a process by which courts determine and grant the appropriate ownership interest of an estate to creditors, taxing entities, and heirs of an owner who dies intestate

subdivision

in North Carolina, all divisions 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 (whether immediate or future) and includes all division of land involving the dedication of a new street or a change in existing streets

illegal use

any property use which violates the zoning laws at the time it is put into place; aka illegal non-conforming use

nonconforming use

any property use which is inconsistent with the land use controls for that area, regardless of legality

overlay district

a type of zoning that is superimposed over another type of zoning

special use permit

allows specific kinds of uses in a zone that aren't the main use of that zone, as long as the property owner meets certain requirements; aka conditional-use permit

spot zoning

rezoning a small parcel of land for a use classification totally different from that of the surrounding area for the benefit of the owner of that property and to the detriment of other property owners

variance

permission granted by the government so that property may be used in a manner not allowed by the current zoning

covenants, conditions, and restrictions (CC&Rs)

private restrictions similar to deed restrictions that dictate what homeowner may do with their property

conveyance

an instrument that transfers a grantor’s interest in real property

doctrine of laches

a legal principle used to bar dated claims; used in conjunction with an unreasonable delay or negligence in asserting or defending one’s rights