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North Carolina Real Estate Broker Course Notes

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Section 1National: Real PropertyPreview
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Summary

National: Real Property cheat sheet covering 5 blueprint objectives. Prioritize the exact distinctions, numbers, and decision rules below; use the comprehensive study guide for full explanations.

Key Points

  • real versus personal property: Real property is land plus rights and permanent improvements/attachments; personal property (chattels) is movable.

Common Mistakes

  • Do not decide fixture status from one clue alone; a bolted item can still be a trade fixture, while an unbolted item may still be intended as permanent.

Exam Tips

  • Eliminate answers that use absolute words when the rule is fact-dependent.
Section 2National: OwnershipPreview
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Summary

National: Ownership cheat sheet covering 4 blueprint objectives. Prioritize the exact distinctions, numbers, and decision rules below; use the comprehensive study guide for full explanations.

Key Points

  • estates and ownership forms: Freehold estates include fee simple estates and life estates; leaseholds are nonfreehold estates.

Common Mistakes

  • Do not say all freehold estates 'never revert'—a life estate can be followed by a reversion.

Exam Tips

  • Eliminate answers that use absolute words when the rule is fact-dependent.
Section 3National: ValuationPreview
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Summary

National: Valuation cheat sheet covering 4 blueprint objectives. Prioritize the exact distinctions, numbers, and decision rules below; use the comprehensive study guide for full explanations.

Key Points

  • market value and appraisal principles: Market value is the most probable price a property should bring in a competitive and open market under typical conditions—not simply the actual sale price.

Common Mistakes

  • Do not answer from a single familiar keyword; apply the full fact pattern and the governing rule.

Exam Tips

  • Eliminate answers that use absolute words when the rule is fact-dependent.
Section 4National: Contracts & AgencyPreview
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Summary

National: Contracts & Agency cheat sheet covering 4 blueprint objectives. Prioritize the exact distinctions, numbers, and decision rules below; use the comprehensive study guide for full explanations.

Key Points

  • contract requirements and classifications: Contract formation requires competent parties, mutual assent (offer + acceptance), consideration, lawful purpose, and any required form.

Common Mistakes

  • Avoid this trap: Earnest money is not itself required to create every valid purchase contract; consideration can consist of mutual promises.

Exam Tips

  • Eliminate answers that use absolute words when the rule is fact-dependent.
Section 5National: PracticePreview
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Summary

National: Practice cheat sheet covering 4 blueprint objectives. Prioritize the exact distinctions, numbers, and decision rules below; use the comprehensive study guide for full explanations.

Key Points

  • fair housing: Federal Fair Housing Act protected classes: race, color, religion, sex, national origin, familial status, and disability.

Common Mistakes

  • Do not answer from a single familiar keyword; apply the full fact pattern and the governing rule.

Exam Tips

  • Eliminate answers that use absolute words when the rule is fact-dependent.
Section 6National: DisclosuresPreview
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Summary

National: Disclosures cheat sheet covering 4 blueprint objectives. Prioritize the exact distinctions, numbers, and decision rules below; use the comprehensive study guide for full explanations.

Key Points

  • lead-based paint: Federal lead-based paint disclosure rules generally apply to most residential housing built before 1978.

Common Mistakes

  • Avoid this trap: Buyers generally receive a 10-day opportunity to conduct a lead inspection/risk assessment unless the parties agree in writing to a different period or the buyer waives it in writing.

Exam Tips

  • Eliminate answers that use absolute words when the rule is fact-dependent.
Section 7National: FinancingPreview
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Summary

National: Financing cheat sheet covering 4 blueprint objectives. Prioritize the exact distinctions, numbers, and decision rules below; use the comprehensive study guide for full explanations.

Key Points

  • mortgage concepts: The promissory note is the borrower’s promise/evidence of debt; the mortgage or deed of trust is the security instrument creating a lien/security interest in the real property.

Common Mistakes

  • Do not reverse the LTV formula.

Exam Tips

  • Eliminate answers that use absolute words when the rule is fact-dependent.
Section 8National: Real Estate MathPreview
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Summary

National: Real Estate Math cheat sheet covering 5 blueprint objectives. Prioritize the exact distinctions, numbers, and decision rules below; use the comprehensive study guide for full explanations.

Key Points

  • proration: Proration allocates an income or expense between parties according to the period each is entitled to or responsible for it.

Common Mistakes

  • Do not invent a 360-day or 365-day convention; use the convention given in the question.

Exam Tips

  • Eliminate answers that use absolute words when the rule is fact-dependent.
Section 9North Carolina: LicensurePreview
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Summary

North Carolina: Licensure cheat sheet covering 3 blueprint objectives. Prioritize the exact distinctions, numbers, and decision rules below; use the comprehensive study guide for full explanations.

Key Points

  • broker license requirements: North Carolina is a broker-only licensing state; the entry-level individual license status is Provisional Broker (PB).

Common Mistakes

  • Avoid this trap: An inactive license does not authorize brokerage activity; inactive North Carolina brokers must cease brokerage, including referrals.

Exam Tips

  • Eliminate answers that use absolute words when the rule is fact-dependent.
Section 10North Carolina: AgencyPreview
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Summary

North Carolina: Agency cheat sheet covering 5 blueprint objectives. Prioritize the exact distinctions, numbers, and decision rules below; use the comprehensive study guide for full explanations.

Key Points

  • agency agreements: North Carolina agency agreements for brokerage services must be express and comply with Rule 58A .0104.

Common Mistakes

  • Avoid this trap: Compensation source does not determine agency; identify the actual agreement and disclosed relationship.

Exam Tips

  • Eliminate answers that use absolute words when the rule is fact-dependent.
Section 11North Carolina: Supervision/CompensationPreview
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Summary

North Carolina: Supervision/Compensation cheat sheet covering 3 blueprint objectives. Prioritize the exact distinctions, numbers, and decision rules below; use the comprehensive study guide for full explanations.

Key Points

  • broker-in-charge responsibilities: Current NCREC handbook identifies BIC responsibilities including active-license oversight, company information changes, firm advertising, trust/escrow accounts, transactional records, PB supervision, and agency agreement/disclosure compliance.

Common Mistakes

  • Avoid this trap: Delegating bookkeeping or clerical work does not eliminate the BIC’s supervisory responsibility.

Exam Tips

  • Eliminate answers that use absolute words when the rule is fact-dependent.
Section 12North Carolina: Brokerage PracticePreview
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Summary

North Carolina: Brokerage Practice cheat sheet covering 5 blueprint objectives. Prioritize the exact distinctions, numbers, and decision rules below; use the comprehensive study guide for full explanations.

Key Points

  • trust accounts: Rule 58A .0116 generally requires trust money received by a broker in a fiduciary capacity to be deposited in a compliant trust/escrow account no later than three banking days after receipt, subject to stated exceptions.

Common Mistakes

  • Avoid this trap: In a dispute over a deposit (other than separately governed residential tenant security deposits), the broker generally retains the funds until a recognized authority exists or follows the rule-authorized clerk-of-court procedure.

Exam Tips

  • Eliminate answers that use absolute words when the rule is fact-dependent.
Section 13North Carolina: Taxes/InsurancePreview
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Summary

North Carolina: Taxes/Insurance cheat sheet covering 3 blueprint objectives. Prioritize the exact distinctions, numbers, and decision rules below; use the comprehensive study guide for full explanations.

Key Points

  • property tax: North Carolina property taxation is governed by Chapter 105; exam math uses assessed/taxable value and the stated local rate.

Common Mistakes

  • Avoid this trap: Assessed value is the tax base; sale price is not automatically the tax base.

Exam Tips

  • Eliminate answers that use absolute words when the rule is fact-dependent.
Section 14North Carolina: Contracts/ClosingPreview
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Summary

North Carolina: Contracts/Closing cheat sheet covering 5 blueprint objectives. Prioritize the exact distinctions, numbers, and decision rules below; use the comprehensive study guide for full explanations.

Key Points

  • offer and acceptance: An enforceable North Carolina real estate sales contract requires the required writing/signatures under the Statute of Frauds plus valid offer and acceptance.

Common Mistakes

  • Avoid this trap: A seller’s oral statement accepting a written offer does not substitute for the seller’s required signature on the sales contract.

Exam Tips

  • Eliminate answers that use absolute words when the rule is fact-dependent.
Section 15North Carolina: Landlord/TenantPreview
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Summary

North Carolina: Landlord/Tenant cheat sheet covering 3 blueprint objectives. Prioritize the exact distinctions, numbers, and decision rules below; use the comprehensive study guide for full explanations.

Key Points

  • residential rental agreements: North Carolina residential security-deposit caps under G.S. 42-51(b): week-to-week = maximum two weeks’ rent; month-to-month = maximum 1.5 months’ rent; terms greater than month-to-month = maximum two months’ rent.

Common Mistakes

  • Do not rewrite 'greater than month-to-month' as 'greater than 1.5 months'—the statute classifies by tenancy term.

Exam Tips

  • Eliminate answers that use absolute words when the rule is fact-dependent.
Section 16North Carolina: Other NC LawsPreview
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Summary

North Carolina: Other NC Laws cheat sheet covering 5 blueprint objectives. Prioritize the exact distinctions, numbers, and decision rules below; use the comprehensive study guide for full explanations.

Key Points

  • Residential Property Disclosure Act: Chapter 47E generally requires the owner to deliver required disclosure statements no later than the time the purchaser makes an offer.

Common Mistakes

  • Avoid this trap: The owner’s statutory disclosure choices do not eliminate a broker’s independent Chapter 93A/material-fact duties.

Exam Tips

  • Eliminate answers that use absolute words when the rule is fact-dependent.