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Written by Joy Watson, Owner and Broker-in-Charge of Joy Watson Real Estate in Greensboro, NC. NC real estate broker license #307423, firm license #C37131, licensed since 2018. About Joy.

1. Opening the notebook...

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Glossary of NC Real Estate Terms

Plain definitions of the words that show up in contracts, closings, and rental listings. Each one links to its official source and to a related post when there is one.

These definitions are general education from a licensed North Carolina real estate broker. They are not legal, tax, or financial advice. Laws and forms change, so check the linked source, and talk with a real estate attorney, CPA, or lender about your own situation. Last reviewed October 4, 2026.

1031 Exchange

A federal tax rule that lets an investor sell one investment property and buy another of like kind while deferring capital gains tax, as long as strict deadlines are met. Source: IRS, Like-Kind Exchanges.

Appraisal

An independent opinion of a home's value, usually ordered by the lender before a loan is approved. Appraisers in North Carolina are licensed by the NC Appraisal Board.

Buyer Agency Agreement

A written agreement between a buyer and a brokerage that spells out the agent's duties, how long the agreement lasts, and how the agent is paid. Source: NC Real Estate Commission Consumer Guide.

Closing Attorney

In North Carolina, a real estate attorney usually handles the title search, prepares closing documents, collects and pays out funds, and records the deed. I often work with The Justice Law Group in Greensboro.

Condominium

Ownership of one unit plus a shared interest in the common areas. Most North Carolina condos are governed by the NC Condominium Act, G.S. Chapter 47C.

Deed Restriction

A rule recorded with a property's deed or covenants that limits how the land can be used, such as lot splits, fence styles, or business use. Background: restrictive covenant (Wikipedia).

Dual Agency

One brokerage represents both the buyer and the seller in the same sale. It requires written consent from both parties. Source: NC Real Estate Commission Consumer Guide.

Due Diligence Period

The time written into a North Carolina Offer to Purchase when the buyer inspects the home, gets an appraisal, and finalizes a loan. The buyer can end the contract for any reason during this window. The buyer often pays the seller a negotiated due diligence fee. Source: NCREC, Due Diligence Questions and Answers.

Earnest Money Deposit

Money the buyer places with an escrow agent to show good faith. If the buyer backs out after the due diligence period ends without a contract reason, the seller may be entitled to it. Source: NCREC, Earnest Money Deposits.

Fair Housing Act

Federal law that bans housing discrimination based on race, color, religion, sex, national origin, familial status, or disability. Sources: U.S. Department of Justice and the NC State Fair Housing Act, G.S. Chapter 41A.

FORTIFIED Home

A building standard from the Insurance Institute for Business and Home Safety that strengthens roofs and walls against high wind and storms. It comes in Roof, Silver, and Gold levels. Source: FORTIFIED Home.

HOA (Planned Community)

An owners' association that cares for common areas and enforces recorded covenants. Most communities created on or after January 1, 1999 fall under the NC Planned Community Act, G.S. Chapter 47F, and some of its sections also apply to older communities.

Home Inspection

A visual check of a home's major systems by a licensed inspector, usually done during the due diligence period. Inspectors are licensed under the NC Home Inspector Licensure Board law. Inspectors I trust are on my preferred vendors page.

Joint Tenancy with Right of Survivorship

A way for two or more people to own property together where, when one owner dies, their share passes to the surviving owners instead of through their estate. In North Carolina the deed must state that intent, for example with the words "with right of survivorship." Source: G.S. 41-71.

Landlord and Tenant Law

North Carolina rules for residential leases, repairs, evictions, and security deposits. Source: G.S. Chapter 42, Landlord and Tenant.

Material Fact

Any fact that could affect a reasonable person's decision to buy, sell, or lease a property. North Carolina brokers must disclose material facts they know or reasonably should know to every party, not only their own client. Source: NCREC, How to Discover Material Facts.

MLS (Multiple Listing Service)

A shared database where brokers list homes for sale so other brokers and buyers can find them. Triad MLS serves Greensboro and the Piedmont Triad. Background: multiple listing service (Wikipedia).

NCREC

The North Carolina Real Estate Commission, the state agency that licenses real estate brokers and handles consumer complaints. Source: ncrec.gov.

Statement of Unpaid Assessments

A written statement from an HOA showing what an owner still owes. The association must provide it within 10 business days of a request from the owner or the owner's authorized agent. Source: G.S. 47F-3-118.

Title Insurance

A one-time policy that protects the lender, and the owner if purchased, against covered problems with the property's ownership history. Title insurers are regulated by the NC Department of Insurance.

Underground Storage Tank (UST)

A tank buried on the property, at older Triad homes usually a heating oil tank. North Carolina has specific rules for removing, closing, or cleaning up after a home heating oil tank. Source: NC DEQ, Underground Storage Tanks Section FAQs.

Vacation Rental Act

North Carolina law covering rentals for vacation or leisure that last fewer than 90 days, including written agreements and deposits. Source: G.S. Chapter 42A.

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Index, A to Z

Like the back of a cookbook. Topics run A to Z, and a post shows up under every topic it covers.