- Trust (Escrow) Account
- A separate bank account where a broker deposits money belonging to others, such as earnest money or tenant deposits, kept apart from the broker's own funds to prevent commingling.
- Broker
- A licensed real estate professional in North Carolina authorized to represent buyers or sellers in real estate transactions; unlike many states, NC licenses all agents as 'brokers' rather than 'salespersons.'
- Provisional Broker
- An entry-level NC broker license held by someone who has passed the exam but must complete postlicensing education and work under a supervising broker-in-charge until the license becomes non-provisional.
- Broker-in-Charge (BIC)
- A designated broker responsible for supervising the activities of a real estate office and its affiliated provisional brokers, ensuring compliance with license law and trust account handling.
- Agency Agreement
- A contract that creates a fiduciary relationship between a broker and a client (buyer or seller), defining the scope of representation and the duties owed.
- Fiduciary Duties
- The legal obligations a broker owes a client, commonly summarized as obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care (OLD CAR).
- Dual Agency
- A situation where one firm represents both the buyer and seller in the same transaction; in NC it is permitted only with the informed written consent of both parties.
- Earnest Money
- A good-faith deposit a buyer provides when making an offer, held in a trust account and applied toward the purchase price at closing or handled per the contract if the deal falls through.
- Material Fact
- Any fact that could influence a reasonable party's decision in a transaction; NC brokers must disclose known material facts about a property to all parties, even non-clients.
- Residential Property Disclosure Statement
- A form NC law requires most residential sellers to provide to buyers, disclosing known conditions and defects of the property or noting 'no representation.'
- Commingling
- The prohibited practice of mixing clients' or others' funds with a broker's personal or business operating funds; NC license law forbids it.
- Passing Score
- The minimum result required to pass the NC broker licensing exam, which contains 140 scored questions and requires a score of 75 to pass each section; the exam fee is $63.