Wilkes County NC · Complete A–Z Reference

Real Estate Glossary for Buyers, Sellers and Landowners

Search plain-English definitions for North Carolina contracts, agency, mortgages, appraisal, inspections, title, deeds, taxes, closing, acreage, easements, private roads, wells, septic systems, flood risk, manufactured homes, and investing.

  • 267 practical definitions
  • Every letter A–Z represented
  • North Carolina-specific contract terms
  • Rural and mountain-property terminology
267Definitions
26A–Z Sections
NCContract Context
RuralLand, Well & Septic
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A

A Terms

14 definitions

Abstract of Title

Title & Deeds

A condensed history of recorded documents affecting a property’s ownership. A modern title search and title insurance commitment often serve the practical purpose once associated with an abstract.

Acceleration Clause

Financing

A loan provision allowing the lender to demand the entire unpaid balance after a specified default, subject to the note, deed of trust, and applicable law.

Adjustable-Rate Mortgage (ARM)

Financing

A mortgage with an interest rate that may change after an initial period according to the loan’s index, margin, adjustment schedule, and caps.

Agency

North CarolinaContracts & Legal

A legal relationship in which a real-estate broker represents a client and owes duties defined by law and the agency agreement.

Amortization

Financing

The scheduled reduction of a loan balance through payments applied to principal and interest over time.

Annual Percentage Rate (APR)

Financing

A standardized measure of borrowing cost that includes the interest rate and certain loan charges. It is useful for comparing loans but is not the same as the note rate.

Appraisal

BuyingSelling

An independent opinion of value prepared by a qualified appraiser for a stated purpose and effective date. A lender appraisal is not a home inspection.

Appraisal Contingency

BuyingContracts & Legal

A contract provision addressing what may happen if the property does not appraise at or above an agreed amount. The actual contract language controls.

Appraised Value

BuyingSelling

The value conclusion stated in an appraisal report. It can differ from list price, tax value, automated estimates, and the final purchase price.

Appreciation

Market

An increase in property value over time. Appreciation is not guaranteed and can result from market changes, improvements, inflation, scarcity, or other factors.

As-Is

North CarolinaBuyingSelling

A term indicating that the seller does not promise to make repairs merely because of the sale. It does not erase disclosure obligations or the buyer’s right to investigate under the contract.

Assessment

TaxesHOA

A value or charge assigned by a government or association. Examples include a county tax assessment and an HOA special assessment.

Assignment

Contracts & Legal

A transfer of contractual rights or interests from one party to another. Some real-estate contracts restrict assignment, so the written agreement controls.

Assumption

Financing

A transaction in which a buyer takes responsibility for an existing loan, subject to lender approval and the loan’s terms. The original borrower may remain liable unless formally released.

B

B Terms

14 definitions

Backup Offer

BuyingContracts & Legal

An offer accepted in a secondary position that may become primary if the existing contract terminates, as provided by the agreements involved.

Balloon Mortgage

Financing

A loan with payments that do not fully repay the balance by maturity, leaving a larger final payment due.

Base Flood Elevation (BFE)

Land & RuralFlood

FEMA’s computed elevation to which floodwater is anticipated to rise during the base flood. It is used in floodplain management and insurance decisions.

Basis

Taxes

Generally, the amount used for tax calculations involving gain or loss, often starting with acquisition cost and adjusted for certain improvements, depreciation, and other items. Consult a tax professional.

Beneficiary

Contracts & Legal

The party entitled to receive a benefit. In a deed of trust, terminology varies by jurisdiction and document; review the recorded instrument.

Binder

InsuranceContracts & Legal

An informal term sometimes used for a temporary insurance commitment or an agreement-related deposit. Ask which meaning is intended.

Boundary

Land & Rural

The legally recognized limit of a parcel. Online GIS lines are approximate and are not a substitute for a survey.

Broker

North CarolinaAgency

In North Carolina, real-estate licensees are licensed as brokers; some begin as provisional brokers under supervision. “Agent” commonly describes the representation role, not the license title.

Brokerage Compensation

North CarolinaAgency

Payment for brokerage services under a written agreement or transaction arrangement. Amounts and payment methods are negotiable and should be understood before signing.

Building Code

Construction

Rules governing construction, alteration, safety, and occupancy. Code compliance does not guarantee that a building has no defects.

Building Permit

Construction

Government authorization for specified construction or alteration. Buyers should verify permits and final approvals for significant additions or renovations.

Buyer Agency

North CarolinaAgency

A brokerage relationship in which a broker represents the buyer under an agency agreement.

Buyer-Broker Agreement

North CarolinaAgency

A written agreement describing the buyer broker’s services, duties, term, compensation, and other conditions. Read it before signing.

Buyer Credit

Financing

Money credited to the buyer under the contract, often toward allowed closing costs or repairs. Loan-program limits and appraisal rules may apply.

C

C Terms

21 definitions

Capital Gain

Taxes

The amount by which proceeds exceed adjusted tax basis, subject to federal and state tax rules, exclusions, and individual circumstances.

Cash to Close

FinancingClosing

The verified amount a buyer must bring or wire for closing after accounting for the down payment, costs, deposits, credits, and adjustments.

Certificate of Eligibility (COE)

Financing

A VA document confirming an eligible borrower’s home-loan benefit status. It does not by itself approve the borrower or property.

Chain of Title

Title & Deeds

The sequence of recorded ownership and transfers affecting a property.

Clear Title

Title & Deeds

A practical phrase for title without unresolved claims or defects that prevent the intended transfer or title insurance. The title attorney and insurer determine insurability.

Closing

North CarolinaClosing

The completion of a real-estate transaction. In North Carolina, signing and settlement activities may occur before the deed is recorded; contract and attorney instructions control when the transaction is legally completed.

Closing Costs

FinancingClosing

Expenses connected with financing and transferring real estate, such as lender, appraisal, attorney, title, recording, insurance, tax, and prepaid charges.

Closing Disclosure

FinancingClosing

A federal five-page form showing final mortgage terms, projected payments, and closing costs. For many covered loans, the borrower must receive it at least three business days before closing.

Cloud on Title

Title & Deeds

A recorded claim, defect, inconsistency, or unresolved issue that may affect ownership or transferability.

Comparable Sale (Comp)

Value & AppraisalMarket

A recently sold property used as evidence when estimating value. The best comparables are similar in location, property type, size, condition, features, land, and timing.

Comparative Market Analysis (CMA)

North CarolinaValue & Appraisal

A broker’s analysis of comparable properties and market conditions used to discuss a possible price range. It is not an appraisal.

Concession

BuyingSelling

A negotiated benefit provided by one party, such as a seller contribution toward allowable buyer costs. The contract and loan rules control.

Condominium

HOA

A form of ownership in which a person owns an individual unit and an interest in common elements, subject to declarations, bylaws, assessments, and association rules.

Conforming Loan

Financing

A conventional mortgage that meets applicable Fannie Mae or Freddie Mac standards, including current loan-size limits.

Construction Loan

FinancingConstruction

Short-term or construction-to-permanent financing used to build or substantially renovate a property, generally with draws and inspections.

Contingency

Contracts & Legal

A contract condition addressing an event such as financing, appraisal, inspection, or another sale. North Carolina contracts may allocate risk differently than contracts in other states.

Contract

Contracts & Legal

A legally enforceable agreement. Real-estate contracts should be read as a whole; deadlines, remedies, and defined terms matter.

Conventional Loan

Financing

A mortgage not insured or guaranteed by a federal housing agency such as FHA, VA, or USDA.

Counteroffer

Contracts & Legal

A response changing proposed terms. It generally rejects the prior offer and creates a new offer unless the documents provide otherwise.

Covenant

Land & RuralContracts & Legal

A promise or restriction affecting land or an agreement, often recorded in declarations or deeds.

Credit Score

Financing

A numerical measure derived from credit information. Lenders may use different scoring models and additional underwriting criteria.

D

D Terms

13 definitions

Debt-to-Income Ratio (DTI)

Financing

A comparison of specified monthly debt obligations with gross monthly income. Lenders calculate DTI under their program rules.

Deed

Title & Deeds

A written instrument used to transfer an interest in real property. Deed type affects the warranties given.

Deed of Trust

North CarolinaFinancingTitle & Deeds

A security instrument commonly used in North Carolina to secure repayment of a real-estate loan.

Deed Restriction

Land & RuralContracts & Legal

A recorded limitation or covenant affecting property use, construction, subdivision, leasing, or other rights.

Default

Contracts & LegalFinancing

Failure to perform a contractual or loan obligation, such as making payments or completing required actions.

Designated Dual Agency

North CarolinaAgency

A form of dual agency in which different individual brokers within the same firm are designated to represent opposing clients, when lawfully authorized and agreed.

Discount Points

Financing

Upfront charges, generally expressed as a percentage of the loan amount, paid in exchange for a particular interest-rate arrangement. Compare break-even timing.

Disclosure

North CarolinaContracts & Legal

Information communicated about agency, property condition, loan terms, material facts, or transaction risks. The required form and timing depend on the subject.

Down Payment

Financing

The portion of the purchase price paid from the buyer’s funds rather than financed by the first mortgage.

Dual Agency

North CarolinaAgency

A brokerage relationship in which the same firm represents both buyer and seller in a transaction with informed authorization as required.

Due Diligence

North CarolinaBuying

In a North Carolina purchase, the buyer’s negotiated opportunity to investigate the property and transaction under the contract, including financing, appraisal, inspections, title, survey, insurance, and other concerns.

Due Diligence Fee

North CarolinaBuying

Under commonly used North Carolina residential contracts, a negotiated fee paid directly to the seller by the effective date, generally nonrefundable except as the contract or law provides, and credited at closing if the sale completes.

Due Diligence Period

North CarolinaBuyingContracts & Legal

The negotiated time during which the buyer performs investigations and may have a contractual termination right. The deadline and consequences must be read directly from the signed contract.

E

E Terms

10 definitions

Easement

Land & RuralTitle & Deeds

A right allowing someone to use another person’s land for a defined purpose, such as access, utilities, drainage, or maintenance.

Effective Date

North CarolinaContracts & Legal

The date a contract becomes binding under its terms, often after final acceptance has been communicated. Many deadlines are calculated from this date.

Eminent Domain

Contracts & LegalLand & Rural

Government power to take private property for a public use with legally required compensation, subject to applicable procedures and challenges.

Encroachment

Land & Rural

A structure, improvement, or use that extends across a boundary, easement, setback, or another property right.

Earnest Money Deposit

North CarolinaBuying

A buyer deposit held in accordance with the contract. Under commonly used North Carolina forms, it may be refundable if the buyer properly terminates by the due diligence deadline, while the due diligence fee generally is not.

Equity

Selling

The property’s value minus debts and liens secured by or chargeable against it. Actual net proceeds also subtract transaction expenses.

Escrow

ClosingFinancing

An arrangement in which a neutral holder safeguards money or documents until specified conditions are met. Mortgage escrow accounts separately collect taxes and insurance.

Escrow Account

Financing

An account maintained by a lender or servicer to collect portions of property taxes, homeowners insurance, and sometimes mortgage insurance with monthly payments.

Exclusive Buyer Agency

North CarolinaAgency

An agreement under which one brokerage is engaged to represent a buyer for a stated period and scope, subject to its terms.

Exclusive Right-to-Sell Listing

North CarolinaSelling

A listing agreement that generally entitles the brokerage to agreed compensation if the property sells during the listing term, subject to the agreement.

F

F Terms

13 definitions

Fair Housing Act

Contracts & Legal

Federal law prohibiting specified housing discrimination. State and local protections may also apply.

Fee Simple

Title & Deeds

The broadest common form of private real-property ownership, subject to taxes, laws, easements, restrictions, and other valid interests.

FHA Loan

Financing

A mortgage insured by the Federal Housing Administration and originated by an approved lender. FHA appraisal requirements do not replace an independent home inspection.

FHA Mortgage Insurance

Financing

Insurance protecting the lender on an FHA loan. Borrowers typically pay an upfront and recurring premium under program rules.

FIRM (Flood Insurance Rate Map)

FloodLand & Rural

FEMA’s official map showing mapped flood hazards and flood-insurance risk zones for a community.

Fixed-Rate Mortgage

Financing

A mortgage whose note interest rate does not change during the loan term, although taxes, insurance, and escrow payments can change.

Fixture

Contracts & Legal

An item that may be treated as part of the real property because of attachment, adaptation, and intent. Contracts should clearly identify disputed items.

Flood Insurance

FloodInsurance

Coverage for specified flood damage, generally separate from standard homeowners insurance. Lenders may require it for certain mapped risks.

Floodplain

FloodLand & Rural

Land susceptible to flooding. Mapped risk is important, but flooding can occur outside mapped high-risk zones.

Flood Zone

FloodLand & Rural

A FEMA map designation associated with a level or type of flood risk. Zone X is not the same as zero risk.

Foreclosure

Contracts & LegalFinancing

A legal process through which a lender or other lienholder enforces its security interest after default.

For Sale by Owner (FSBO)

Selling

A sale marketed by an owner without a listing brokerage. Buyers and sellers still need appropriate legal, title, disclosure, and transaction support.

Funding Fee

Financing

A program charge associated with certain VA loans, subject to current rates and possible exemptions. It may be financed as allowed.

G

G Terms

6 definitions

General Warranty Deed

Title & Deeds

A deed containing broad warranties of title. The exact protection comes from the deed language and applicable law.

Good-Faith Deposit

Contracts & Legal

An informal phrase that may refer to earnest money or another deposit. Use the contract’s defined term instead of assuming the meaning.

Government-Backed Loan

Financing

A loan insured or guaranteed by a government program, such as FHA, VA, or USDA, but made or serviced by approved lenders.

Grantor

Title & Deeds

The person or entity transferring an interest by deed.

Grantee

Title & Deeds

The person or entity receiving an interest by deed.

Gross Living Area (GLA)

Value & Appraisal

Finished above-grade residential area measured under the appraiser’s applicable standard. It may differ from tax records, listing square footage, or total finished space.

H

H Terms

10 definitions

Hazard Insurance

Insurance

A term often used for property coverage protecting against specified hazards. It is usually part of a homeowners policy and does not automatically include flood coverage.

Highest and Best Use

Value & AppraisalLand & Rural

An appraisal concept referring to the reasonably probable, legal, physically possible, financially feasible, and maximally productive use of property.

Home Equity Line of Credit (HELOC)

Financing

A revolving loan secured by home equity, typically with a variable rate and draw period.

Home Inspection

BuyingInspections

A visual evaluation of accessible systems and components by an inspector within the scope of the inspection agreement. It is not an appraisal, code guarantee, or warranty.

Home Warranty

Insurance

A service contract covering specified systems or appliances under stated limits, exclusions, deductibles, and claim procedures.

Homeowners Association (HOA)

HOA

An organization administering recorded community documents, common property, rules, budgets, dues, and assessments.

Homeowners Insurance

Insurance

Coverage for specified property losses and liability. Policy limits, exclusions, deductibles, replacement-cost terms, and special endorsements matter.

Homestead Exclusion or Relief

Taxes

A property-tax benefit that may be available to qualifying owners under state or local rules. Eligibility and terminology vary.

Household Income

Financing

Income counted under a lender or assistance program’s rules. USDA and other programs may define and verify it differently from taxable income.

HUD

Financing

The U.S. Department of Housing and Urban Development, which administers housing programs and oversees FHA.

I

I Terms

10 definitions

Improvement

Land & RuralValue & Appraisal

A building, structure, utility, or other addition to land. Whether it adds market value depends on legality, condition, usefulness, and buyer demand.

Improvement Permit (Septic)

North CarolinaLand & RuralSeptic

A North Carolina onsite-wastewater approval based on site and soil evaluation for a proposed use. It is not the same as a completed operating permit.

Income Property

Investing

Property held to produce rent or other income. Financing, taxes, insurance, leases, zoning, and operating expenses require separate analysis.

Inspection Contingency

North CarolinaBuying

A contract provision allowing specified action based on inspections. Many North Carolina residential contracts rely primarily on the negotiated due diligence framework instead.

Interest

Financing

The cost charged for borrowing money, usually expressed through a rate and dollar amount.

Interest Rate

Financing

The percentage used to calculate loan interest. It is different from APR and may be fixed or adjustable.

Interest-Rate Lock

Financing

A lender agreement holding a stated rate and terms for a limited period, subject to conditions and extension rules.

Investment Property

InvestingFinancing

Real estate owned primarily for income, appreciation, or business use rather than as the borrower’s principal residence.

Investor

Investing

A person or entity acquiring property for income, resale, development, or appreciation. Investor financing and disclosures can differ from owner-occupied transactions.

Irrevocable Offer

Contracts & Legal

An offer that cannot be withdrawn for a stated period only when supported and structured as required by law. Ordinary offers may be revocable before acceptance; consult counsel.

J

J Terms

4 definitions

Joint Tenancy

Title & Deeds

A form of co-ownership that may include survivorship rights if validly created. North Carolina title questions should be reviewed by an attorney.

Judgment Lien

Title & DeedsContracts & Legal

A lien arising from a court judgment that may affect property ownership or sale proceeds.

Jumbo Loan

Financing

A mortgage larger than the applicable conforming-loan limit, generally subject to the lender’s portfolio requirements.

Junior Lien

Title & DeedsFinancing

A lien with lower priority than another lien, such as a second mortgage behind a first deed of trust.

K

K Terms

2 definitions

Kick-Out Clause

Contracts & Legal

A provision allowing a seller to continue marketing while under a contingent contract and, after specified notice, require the buyer to remove a contingency or risk termination. The clause controls.

Known Material Fact

North CarolinaContracts & Legal

A fact known to a broker that could affect a reasonable person’s decision involving the property or transaction and that must be disclosed as required.

L

L Terms

13 definitions

Landlocked Property

Land & RuralTitle & Deeds

A parcel without legally sufficient access to a public road. Physical paths or map lines do not establish legal access.

Lease

Contracts & Legal

A contract granting possession or use of property for a term in exchange for rent or other consideration.

Leaseback

SellingContracts & Legal

An arrangement in which the seller remains as a tenant after closing under agreed terms. Insurance, possession, liability, deposit, and holdover provisions matter.

Lender Credit

Financing

A credit from the lender toward closing costs, usually provided in exchange for a higher rate or other pricing adjustment.

Lien

Title & Deeds

A legal claim or security interest affecting property, such as a mortgage, judgment, tax lien, or contractor claim.

List Price

MarketSelling

The seller’s current asking price. It is not proof of market value or the amount the seller will accept.

Listing

Selling

A property offered for sale under an owner’s marketing plan or brokerage agreement. Status labels differ among marketplaces and MLS systems.

Listing Agreement

North CarolinaSelling

A contract between a property owner and brokerage defining services, term, authorization, compensation, and responsibilities.

Loan Estimate

Financing

A federal three-page form providing estimated interest rate, payment, closing costs, taxes, insurance, and other loan details after a mortgage application.

Loan-to-Value Ratio (LTV)

Financing

The loan amount divided by the property value used by the lender, generally the lower of price or appraised value for a purchase.

Lockbox

Agency

A secured device used to provide authorized property access. Entry and showing rules are controlled by the owner, listing firm, and applicable systems.

Lot

Land & Rural

A defined parcel or portion of a subdivision. Lot lines, acreage, easements, and restrictions should be verified.

Low Appraisal

BuyingFinancing

An appraisal value below the contract price or expected amount, which may affect financing and negotiations but does not automatically terminate a contract.

M

M Terms

13 definitions

Manufactured Home

Land & RuralFinancing

A factory-built dwelling constructed to federal manufactured-housing standards and identified by labels and documentation. Title, foundation, land ownership, age, and loan eligibility matter.

Market Value

Value & Appraisal

The most probable price under specified market conditions and assumptions. It is not automatically equal to tax value, list price, cost, or automated estimate.

Material Fact

North CarolinaContracts & Legal

Any fact that could affect a reasonable person’s decision to buy, sell, or lease real property. North Carolina brokers have duties to discover and disclose material facts.

Maturity Date

Financing

The date the remaining loan balance becomes due under the note.

Mineral Rights

Land & RuralTitle & Deeds

Rights to subsurface minerals that may be owned separately from surface rights. Ownership and reservations require title research.

Mineral, Oil and Gas Rights Disclosure

North Carolina

A North Carolina disclosure addressing whether certain subsurface rights have been severed or transferred, as required for covered transactions.

Modular Home

Construction

A factory-built home constructed to state building-code requirements and assembled on a permanent site. It is distinct from a manufactured home.

Mortgage

North CarolinaFinancing

A loan secured by real property; in North Carolina, a deed of trust is commonly used as the security instrument.

Mortgage Insurance

Financing

Insurance protecting a lender against specified borrower default risk. It can include conventional PMI or government-program insurance.

Multiple Listing Service (MLS)

Agency

A cooperative database used by participating real-estate professionals to share authorized listing information. It is not a public government registry.

Multiple Offers

BuyingSelling

A situation in which a seller receives more than one offer. Sellers may accept, reject, counter, or seek changes subject to legal and ethical duties.

Municipal Limits

Land & Rural

The incorporated boundary of a town or city. Taxes, utilities, zoning, services, and regulations can differ inside and outside the boundary.

Mutual Acceptance

North CarolinaContracts & Legal

Agreement by all required parties to the same terms. In North Carolina, communication and delivery requirements in the documents affect the effective date.

N

N Terms

8 definitions

Net Proceeds

Selling

The estimated amount a seller receives after loan payoffs, liens, agreed compensation, concessions, taxes, repairs, closing expenses, and adjustments.

Net Sheet

Closing

An estimate of seller proceeds or buyer costs. It is not a final closing statement and depends on assumptions.

Nonconforming Loan

Financing

A mortgage that does not meet standard conforming-loan criteria, including some jumbo and specialized loans.

Note

Financing

The borrower’s written promise to repay a loan under stated terms.

Notice

Contracts & Legal

A communication required or permitted under a contract or law. Valid method, recipient, timing, and delivery are important.

Notice of Default

Contracts & LegalFinancing

A formal notice stating that a contractual or loan obligation has not been performed, as governed by the documents and law.

NC Working With Real Estate Agents Disclosure

North CarolinaAgency

The North Carolina disclosure brokers provide at first substantial contact to explain possible agency relationships, roles, and compensation discussions. It is not itself an agency contract.

Non-Owner-Occupied

Financing

Property not used as the borrower’s principal residence. Lenders and insurers may apply different pricing and eligibility rules.

O

O Terms

8 definitions

Offer

Buying

A proposal to enter a contract on specified terms. Price is only one element; deadlines, deposits, financing, due diligence, concessions, and closing terms matter.

Offer to Purchase and Contract

North CarolinaContracts & Legal

The written purchase agreement defining the parties’ obligations, property, price, deposits, due diligence, settlement, closing, risk, and remedies.

Open House

Selling

A scheduled period when a property is available for prospective buyers to view, subject to owner and brokerage rules.

Operating Permit (Septic)

North CarolinaSeptic

Approval issued after an onsite wastewater system is installed and found acceptable for operation under applicable requirements.

Origination Fee

Financing

A lender charge for processing or making a mortgage loan, disclosed with other loan costs.

Owner Financing

FinancingContracts & Legal

A transaction in which the seller provides some or all financing to the buyer. Legal documents, underwriting, servicing, disclosures, and default remedies require professional guidance.

Owner of Record

Title & Deeds

The person or entity shown as owner in public records, subject to the accuracy and timing of those records.

Owners’ Association Disclosure

North CarolinaHOA

Information and documents concerning an HOA or similar association, including dues, assessments, restrictions, and governance, as applicable.

P

P Terms

20 definitions

Parcel

Land & Rural

A separately identified tract of land for tax or recording purposes. A tax parcel may not resolve all title or boundary questions.

Pending

Market

A status generally indicating an accepted contract while closing conditions remain. Definitions vary by provider and MLS.

Percolation Test (Perc Test)

Land & RuralSeptic

A commonly used phrase for soil or wastewater suitability testing. Modern onsite evaluations may involve broader soil and site analysis rather than a simple percolation test.

PITI

Financing

Principal, interest, property taxes, and homeowners insurance—the common components of a monthly housing payment. HOA dues and mortgage insurance may be additional.

Plat

Land & Rural

A recorded or prepared map showing lots, boundaries, roads, easements, and other survey information.

Points

Financing

Charges expressed as a percentage of the loan amount. Discount points and origination points serve different purposes.

Pre-Approval

Financing

A lender’s conditional assessment of borrowing ability based on reviewed information. It is not a final loan commitment and remains subject to underwriting and property approval.

Prepaid Items

ClosingFinancing

Amounts collected at closing for expenses such as interest, insurance, taxes, and escrow reserves.

Prequalification

Financing

A preliminary estimate of borrowing ability, often based on unverified information and generally less complete than pre-approval.

Principal

Financing

The unpaid amount borrowed, excluding interest and many fees.

Principal Residence

FinancingTaxes

The home a borrower occupies as the primary residence. Program, tax, and insurance definitions can differ.

Private Mortgage Insurance (PMI)

Financing

Insurance generally required by conventional lenders when the borrower’s equity is below specified levels, subject to cancellation rules.

Private Road

Land & Rural

A road not maintained as a public road. Buyers should verify legal access, maintenance agreements, condition, emergency access, and financing implications.

Proration

Closing

Allocation of an expense or income between parties according to time or another agreed method, such as taxes or rent.

Property Disclosure Statement

North Carolina

A seller-completed disclosure concerning property characteristics and conditions for covered North Carolina transactions, subject to exemptions and legal requirements.

Property Tax

Taxes

A local tax based on taxable value and applicable rates. Current bills, exemptions, municipal taxes, and reassessment timing should be verified.

Purchase Price

Buying

The price stated in the contract, before considering credits, concessions, financing, costs, and adjustments.

Planned Unit Development (PUD)

HOA

A development with individually owned property and common areas or amenities governed by recorded documents and an association.

Power of Attorney

Contracts & Legal

A legal document authorizing another person to act for the principal within defined authority. Real-estate use requires careful legal and title review.

Probate Sale

Contracts & LegalSelling

A sale involving a deceased owner’s estate. Authority, court or estate procedures, title, heirs, and timing should be verified by counsel.

Q

Q Terms

3 definitions

Qualified Mortgage (QM)

Financing

A mortgage meeting federal standards intended to support a lender’s ability-to-repay compliance. It does not guarantee affordability for a particular borrower.

Quiet Enjoyment

Contracts & Legal

The right to possess and use property without improper interference, subject to the lease, title, and law.

Quitclaim Deed

Title & Deeds

A deed transferring whatever interest the grantor may have without warranties of title. It does not prove ownership or clear defects by itself.

R

R Terms

17 definitions

Rate Lock

Financing

A lender commitment holding specified loan pricing for a defined period, subject to conditions, expiration, and extension terms.

Real Estate Attorney

North CarolinaClosing

A lawyer handling legal aspects such as title examination, document preparation, advice, settlement, and recording. North Carolina transactions commonly involve a closing attorney.

Real Estate Broker

North CarolinaAgency

A North Carolina-licensed professional authorized to provide brokerage services within the license status and supervision requirements.

REALTOR®

Agency

A real-estate professional who is a member of the National Association of REALTORS®. It is not a synonym for every licensed broker.

Recording

Title & DeedsClosing

Official filing of documents in public records. Recording a deed provides public notice and is central to completing the transfer.

Refinance

Financing

Replacement of an existing loan with a new loan. Costs, rate, term, cash flow, break-even period, and total interest should be compared.

Repair Credit

Buying

A negotiated credit in place of some repair work, subject to lender approval, contract limits, and closing rules.

Replacement Cost

Insurance

The estimated cost to replace damaged property with comparable materials, subject to policy definitions and limits. It is not market value.

Residential Property and Owners’ Association Disclosure Statement

North Carolina

A North Carolina disclosure form addressing covered property characteristics and association matters, subject to exemptions and current law.

Restrictive Covenant

Land & RuralContracts & Legal

A recorded restriction controlling use, construction, leasing, subdivision, animals, or other property activities.

Right of First Refusal

Contracts & Legal

A contractual right to match or act on a proposed sale before the owner sells to another party, under stated terms.

Right-of-Way

Land & RuralTitle & Deeds

A legal right to travel across land or the physical corridor used for access or utilities. Width, location, beneficiaries, and maintenance should be verified.

Risk of Loss

Contracts & Legal

Contract rules determining responsibility if the property is damaged before closing.

Rural Development Loan

Financing

A USDA loan program for qualifying borrowers and eligible rural properties, including certain loans offering 100% financing subject to program requirements.

Radon

Inspections

A naturally occurring radioactive gas that can accumulate indoors. Testing is the practical way to determine a building’s level.

REO (Real Estate Owned)

Investing

Property owned by a lender or institution after foreclosure or another acquisition process.

Rescission

Contracts & Legal

Cancellation or unwinding of a contract or transaction when a legal or contractual right exists. It is not automatically available merely because a party changes their mind.

S

S Terms

20 definitions

Sale-to-List Ratio

Market

The final sale price divided by the relevant list price, usually expressed as a percentage. Data providers may calculate it differently.

Seller Concession

SellingFinancing

A seller-paid amount or benefit negotiated for the buyer, often toward allowable closing costs, repairs, or financing expenses.

Seller Financing

FinancingContracts & Legal

See Owner Financing: the seller extends credit to the buyer under negotiated legal documents.

Septic System

Land & RuralSeptic

An onsite wastewater treatment and dispersal system. Buyers should review permits, capacity, location, maintenance, condition, and repair area.

Setback

Land & RuralZoning

The minimum required distance between improvements and boundaries, roads, water, septic components, or other features.

Settlement

North CarolinaClosing

The meeting or process in which documents and funds are prepared or exchanged. In North Carolina, settlement and final closing/recording may not occur at exactly the same moment.

Settlement Statement

Closing

A document itemizing transaction charges, credits, payoffs, and distributions. The Closing Disclosure is used for many financed consumer transactions; other statements may also be used.

Shared Driveway

Land & Rural

An access route used by more than one property. Verify easement rights, width, maintenance duties, insurance concerns, and lender requirements.

Short Sale

SellingContracts & Legal

A sale requiring one or more lienholders to accept less than the amount owed or otherwise approve payoff terms.

Special Assessment

HOATaxes

An additional charge imposed by an association or government for a specific project or expense.

Specific Performance

Contracts & Legal

A legal remedy asking a court to require a party to perform the contract. Availability depends on the facts, documents, and law.

Square Footage

Value & Appraisal

A measurement of area that can vary by standard and source. Verify what is included, especially basements, additions, lofts, and detached spaces.

Staging

Selling

Preparing and arranging a property to improve presentation to buyers. Staging does not change structural condition or legal facts.

Subdivision

Land & Rural

Land divided into lots under applicable plats, approvals, restrictions, and infrastructure requirements.

Survey

Land & Rural

A professional determination and depiction of boundaries, improvements, encroachments, easements, and other features within the survey’s scope.

Survey Exception

Title & Deeds

A title-policy exception for matters that an accurate survey would reveal. Coverage options depend on insurer requirements.

Severed Rights

Land & RuralTitle & Deeds

Property rights, such as minerals or timber, owned separately from surface ownership.

Soil Evaluation

Land & RuralSeptic

An assessment of soil and site conditions relevant to onsite wastewater suitability and system design.

Subject-To Transaction

FinancingContracts & Legal

A purchase in which title transfers while an existing loan remains in the seller’s name. It creates significant due-on-sale, liability, insurance, and legal risks.

Survivorship

Title & Deeds

A co-ownership feature under which a deceased owner’s interest passes to surviving owner(s), if validly created.

T

T Terms

15 definitions

Tax Assessment

Taxes

The value assigned for property-tax administration. It is not necessarily current market value.

Tax Lien

TaxesTitle & Deeds

A government claim arising from unpaid taxes that can affect title and sale proceeds.

Tax Value

Taxes

The county’s assessed value for taxation. Revaluation cycles and exemptions can make it differ substantially from market value.

Tenancy in Common

Title & Deeds

A form of co-ownership in which owners hold separate undivided interests without automatic survivorship unless otherwise established.

Termite Inspection

Inspections

An inspection for wood-destroying insects or organisms within the report’s scope. It is different from a general home inspection.

Timber Rights

Land & RuralTitle & Deeds

Rights to cut, manage, or receive value from timber, which can be separately conveyed or contracted.

Title

Title & Deeds

The legal ownership interests and rights associated with real property.

Title Insurance

Title & Deeds

Insurance protecting against specified covered title defects under the policy. An owner’s policy protects the owner; a lender’s policy protects the lender.

Title Search

Title & Deeds

Examination of public records and other sources to identify ownership, liens, restrictions, easements, and title issues.

Transfer Tax (Excise Tax)

North CarolinaTaxesClosing

A North Carolina tax imposed on many instruments conveying real property and generally handled in connection with recording. Exemptions and responsibility should be confirmed for the transaction.

Trust Account

North CarolinaClosing

An account used by a broker or attorney to hold client or transaction funds under applicable rules.

Turnkey

Market

Marketing language suggesting a property is ready for use or occupancy. It has no universal technical definition and should not replace inspection.

Time Is of the Essence

Contracts & Legal

A legal phrase making exact performance by a deadline especially important. Do not assume every contract deadline has this effect; read the agreement and obtain legal advice.

Tiny Home

Land & RuralConstruction

A small dwelling whose legality depends on construction classification, building code, zoning, utilities, foundation, and local approval—not simply size.

Town Limits

Land & Rural

See Municipal Limits: incorporated boundaries that can affect taxes, utilities, zoning, and services.

U

U Terms

7 definitions

Under Contract

Market

A property-status label indicating an accepted contract, although conditions remain before closing. Availability for backup offers varies.

Underwriting

Financing

The lender’s evaluation of borrower, credit, income, assets, property, appraisal, title, insurance, and program requirements.

Unrecorded Easement

Land & RuralTitle & Deeds

A claimed access or use right not shown in recorded documents. Its validity requires legal analysis and should never be assumed.

USDA Loan

Financing

A Rural Development mortgage program for qualifying households and eligible rural properties. Certain guaranteed loans may provide 100% financing, subject to income, occupancy, property, and lender requirements.

Utility Easement

Land & Rural

A right allowing utility installation, access, operation, or maintenance across land.

Usable Acreage

Land & Rural

The portion of a tract practically suitable for the intended use after considering slope, access, wetlands, flood risk, setbacks, soils, restrictions, and utilities.

Unpermitted Work

Construction

Construction or alteration completed without required permits or approvals. It may affect safety, insurance, financing, appraisal, and resale.

V

V Terms

8 definitions

VA Loan

Financing

A mortgage made by an approved lender and guaranteed in part by the Department of Veterans Affairs for eligible borrowers, subject to entitlement, underwriting, occupancy, appraisal, and property requirements.

VA Funding Fee

Financing

A charge associated with many VA loans, with rates and exemptions determined by current VA rules.

Valuation

Value & Appraisal

The process or result of estimating value. Appraisal, CMA, automated valuation, tax assessment, and investor analysis are different forms.

Variance

ZoningLand & Rural

Official permission to deviate from a zoning or land-use requirement under specified findings. Approval is not guaranteed.

Variable Interest Rate

Financing

A rate that can change according to the loan agreement, index, margin, caps, and adjustment schedule.

Vested Interest

Title & DeedsContracts & Legal

A present ownership or legal interest not dependent on an unmet condition, though precise meaning varies by context.

View Easement

Land & Rural

A recorded right or restriction intended to preserve a view corridor. Its scope depends on the document.

Vacant Land

Land & Rural

Land without an occupied residential improvement. Buildability, access, utilities, soils, water, restrictions, and permitting must be investigated.

W

W Terms

9 definitions

Walk-Through

BuyingClosing

A buyer’s final pre-closing visit to check agreed condition, completed repairs, remaining personal property, and major changes. It is not a new inspection.

Warranty Deed

Title & Deeds

A deed providing warranties of title stated in the instrument. “General” and “special” warranty deeds provide different scopes.

Well

Land & RuralWell

A private groundwater source. Buyers should consider permit records, location, yield, water quality, equipment, shared-well agreements, and maintenance.

Well Yield

Land & RuralWell

The measured rate at which a well produces water. Yield, storage, recovery, household demand, and water quality all matter.

Wetlands

Land & Rural

Areas meeting legal and scientific criteria associated with water and hydric soils. Wetlands can affect development, permitting, access, and value.

Wire Fraud

Closing

A major closing risk in which criminals impersonate trusted parties and send false wiring instructions. Confirm instructions through independently verified contact information before sending funds.

Wood-Destroying Insect Report

Inspections

A report concerning visible evidence or conditions related to specified wood-destroying organisms within its scope.

Working With Real Estate Agents Disclosure

North CarolinaAgency

See NC Working With Real Estate Agents Disclosure.

Wraparound Mortgage

FinancingContracts & Legal

Seller financing that remains subject to an existing loan while creating a new payment obligation. It involves significant due-on-sale and legal risks.

X

X Terms

2 definitions

Zone X

Flood

A FEMA flood-map designation generally outside the mapped 1% annual-chance floodplain or in areas of reduced risk, depending on shading. It does not mean no flood risk.

Xeriscaping

Land & Rural

Landscape design emphasizing water efficiency through plant choice, layout, soil preparation, and irrigation practices.

Y

Y Terms

3 definitions

Year Built

Property

The construction year shown by a source. Major additions or renovations do not necessarily change the recorded year built.

Year-Over-Year (YoY)

Market

A comparison of a metric with the same period one year earlier. It does not show every month-to-month movement.

Yield

Investing

The income return on an investment, calculated in different ways such as gross yield or capitalization rate. Definitions and expenses must be stated.

Z

Z Terms

4 definitions

Zoning

Land & RuralZoning

Local rules governing land use, density, structures, setbacks, and development. A current use may be legal, nonconforming, conditional, or prohibited.

Zoning Compliance

Land & RuralZoning

Confirmation that an existing or proposed use complies with applicable zoning approvals. A tax classification or listing description is not proof.

Zoning Map

Land & RuralZoning

The official map assigning zoning districts. Verify current mapping and ordinance text with the responsible government.

Zero-Down Loan

Financing

A mortgage requiring no borrower down payment under program rules, such as qualifying USDA or VA financing. Closing costs, reserves, fees, and eligibility still apply.

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Authoritative References

Official Sources for Deeper Research

Use the glossary to understand the language, then use the controlling documents and official source for the actual rule.

NC Real Estate Commission

Agency relationships, broker duties, due diligence, earnest money, material facts, consumer guidance, and license verification.

Visit NCREC →

Consumer Financial Protection Bureau

Loan Estimate, Closing Disclosure, APR, mortgage comparisons, escrow, closing costs, and consumer mortgage protections.

Visit CFPB Mortgage Resources →

USDA Rural Development

Section 502 rural housing eligibility, guaranteed and direct loan information, approved lenders, income limits, and property requirements.

Visit USDA Rural Housing →

FEMA Flood Maps

Official flood maps, flood-zone terminology, mapped hazards, National Flood Hazard Layer data, and flood-risk resources.

Open FEMA Map Service Center →

North Carolina Property and Land Records

Use county tax, register-of-deeds, planning, environmental health, and permit records to verify property-specific information.

Visit Wilkes County Government →
Frequently Asked Questions

Real Estate Glossary FAQ

Which North Carolina terms should a first-time buyer learn first?
Start with agency, buyer-broker agreement, due diligence, due diligence fee, earnest money, effective date, appraisal, title search, survey, inspections, Loan Estimate, Closing Disclosure, settlement, and closing.
What is the difference between the due diligence fee and earnest money?
Under commonly used North Carolina residential contracts, the due diligence fee is negotiated, paid directly to the seller, and generally nonrefundable except as the contract or law provides. Earnest money is held under the contract and may be refundable when the buyer properly terminates by the due diligence deadline. Read the signed agreement.
Does an appraisal replace a home inspection?
No. An appraisal addresses value and lender requirements. A home inspection evaluates accessible systems and conditions within the inspection agreement. HUD specifically distinguishes an FHA appraisal from a comprehensive home inspection.
Why are septic, well, access, and survey terms included?
Rural Wilkes County property value and usability can depend on legal access, private-road maintenance, boundaries, usable acreage, septic approvals, well yield and water quality, utilities, terrain, easements, restrictions, and flood risk.
Is every licensed real-estate professional a REALTOR®?
No. In North Carolina the license is a broker license. REALTOR® identifies a real-estate professional who is a member of the National Association of REALTORS®.
Can this glossary determine what a property is worth?
No. Market value requires property-specific evidence and analysis. Tax value, automated estimates, list price, CMA, appraisal, and investor calculations are different measures.
Is the glossary legal, tax, lending, appraisal, or inspection advice?
No. It is an educational reference. Use an appropriate North Carolina attorney, licensed broker, appraiser, lender, inspector, surveyor, insurance professional, environmental health specialist, or tax adviser for property-specific guidance.
Complete glossary reviewed August 5, 2026

Understand the Term, Then Read the Controlling Document

Definitions help you ask better questions. The transaction still depends on the signed contract, public records, title work, lender disclosures, inspections, surveys, permits, insurance, and professional advice.