Appraisal
A licensed appraiser's opinion of a property's value, ordered by the lender to confirm the home is worth what is being borrowed against it.
Plain English Definitions
North Carolina real estate terms,
decoded.
Every term below shows up somewhere in a real Triad transaction. If a word in your contract is not here, ask me and I will add it.
Appraisal Gap
The difference when a property appraises for less than the agreed purchase price. The buyer either brings the difference in cash, renegotiates, or terminates under the contract terms.
Assessed Value
The value a county assigns your property for tax purposes. It is not the same as market value and it does not change every year.
Buyer Agency Agreement
The written agreement that establishes an agent as your representative, required in North Carolina before an agent shows you homes.
Closing
The point at which the deed is recorded and ownership legally transfers. In North Carolina this happens after settlement, not at the same moment.
Closing Attorney
The licensed North Carolina attorney who searches title, prepares the deed and settlement documents, and disburses funds. Required in North Carolina real estate transactions.
Contingency
A condition written into the contract that must be satisfied before the transaction proceeds, such as the sale of the buyer's existing home.
Days on Market
The number of days a property has been actively listed. A useful signal about pricing, though it resets in some situations.
Deed
The legal document that transfers ownership of real property. It is recorded at the county Register of Deeds.
Due Diligence Fee
A non-refundable payment made directly to the seller that buys the buyer the right to investigate the property and to terminate for any reason during the due diligence period.
Due Diligence Period
The negotiated window during which a buyer investigates the property and can terminate the contract for any reason.
Earnest Money
A deposit held by an escrow agent that shows the buyer is serious. Applied to the purchase at closing, and refundable if the buyer terminates during the due diligence period.
Easement
A recorded right allowing someone else to use part of your property for a specific purpose, such as a utility line or a shared driveway.
Encroachment
A structure that crosses a property line onto a neighboring parcel. Usually discovered by a survey.
Escrow
Funds or documents held by a neutral third party until the conditions of the transaction are met.
Excise Tax
The North Carolina tax on transferring real property, paid by the seller at one dollar per five hundred dollars of sale price. Also called revenue stamps.
Good Funds Settlement Act
The North Carolina law governing how and when a closing attorney may disburse funds at settlement.
HOA
A homeowners association that maintains common areas and enforces community rules, funded by dues paid by owners.
Home Inspection
A non-invasive evaluation of a home's condition by a licensed inspector, ordered by the buyer during the due diligence period.
Read moreImprovement Permit
The county health department permit that establishes what septic system a lot can support, and by extension how many bedrooms can legally be built.
Mineral and Oil and Gas Rights Disclosure
A separate North Carolina disclosure form stating whether mineral, oil, or gas rights have been severed from the property.
Offer to Purchase and Contract
Standard Form 2-T, the primary residential purchase contract used in North Carolina.
Pending
A property under contract where the due diligence period has typically ended and the transaction is moving toward closing.
Pre-approval
A lender's conditional commitment based on verified income, assets, and credit. Stronger than a prequalification, which is based on stated information only.
Reappraisal
The county process of updating assessed property values. North Carolina counties are required to reappraise on a set cycle.
Read moreRegister of Deeds
The county office where deeds, deeds of trust, and plats are recorded, and where the excise tax is collected.
RPOADS
The Residential Property and Owners' Association Disclosure Statement, the primary seller disclosure form in North Carolina.
Seller Concessions
Money the seller agrees to credit toward the buyer's closing costs or rate buydown, negotiated as part of the contract.
Settlement
The signing and funding step that happens before the deed is recorded. In North Carolina, settlement and closing are two distinct events.
Survey
A licensed surveyor's map of the property's boundaries, easements, and improvements.
Tax Rate
The amount charged per one hundred dollars of assessed value, set separately by the county and by the municipality.
Read moreTitle Insurance
A policy protecting against defects in the property's ownership history that were not found during the title search.
Under Contract
A property with an accepted offer. In North Carolina this often means the due diligence period is still running and the buyer can still terminate.
Working With Real Estate Agents Disclosure
The North Carolina disclosure explaining agency relationships, provided at first substantial contact before any confidential information is shared.
Confused by something in your contract?
Send me the line that is not making sense. There is never a stupid question.
This glossary provides general information about North Carolina real estate practice, not legal or tax advice. For guidance on your specific situation, talk to your closing attorney or a CPA.