Fair Housing, Recovery Fund, Condos, Timeshares & More

"Other NC Laws" is a grab bag, but a heavily weighted one. It covers the State Fair Housing Act, the Real Estate Education and Recovery Fund, condominiums and planned communities, timeshares, broker price opinions, and a newer law on long-term service agreements. Each statute has a handful of signature numbers or rules, and the exam asks about exactly those.

The North Carolina State Fair Housing Act (Chapter 41A)

It is an unlawful discriminatory housing practice to take certain actions in a real estate transaction because of race, color, religion, sex, national origin, handicapping condition, or familial status (§ 41A-4(a)). The prohibited acts include:

• Refusing to engage in or negotiate a transaction, or discriminating in its terms.
• Refusing to receive or transmit a bona fide offer.
• Falsely saying property isn't available for inspection, sale or rental.
• Publishing ads or using forms that indicate a discriminatory preference.
• Accepting a listing with the understanding that someone may be discriminated against.

Familial status covers one or more minors under 18 living with a parent, legal custodian or written designee. It also protects anyone who is pregnant or is securing custody of a minor (§ 41A-3(1b)).

Exemptions (§ 41A-6(a)) include rental of units in a building of four or fewer family units where the owner or a family member lives in one, rental of rooms in a private house where the owner or a family member lives, religious organizations preferring members, private clubs, single-sex dormitories, and commercial real estate. These exemptions do not cover discriminatory advertising, which § 41A-4(a)(6) prohibits for everyone.

Enforcement. A complaint goes to the North Carolina Human Relations Commission and must be filed within one year after the alleged practice (§ 41A-7). Brokers also see fair housing in every agency agreement, which must contain the Commission's nondiscrimination clause (Rule 58A .0104(b)).

Real Estate Education and Recovery Fund

The Fund pays unsatisfied judgments to people who suffered a direct monetary loss because a broker converted trust funds (§§ 93A-16, 93A-17). Before applying, the claimant must have sued the broker and filed written notice of the lawsuit with the Commission within 60 days after it began (or, for claims under $3,000, within 60 days after the proceedings end), obtained a final judgment for conversion, and tried to collect without success. Limits under § 93A-21:

• $50,000 per transaction, regardless of the number of claimants.
• $25,000 per licensee in a calendar year, and $75,000 per licensee in total.
• No payment for punitive, consequential or multiple damages, interest, or court costs.
• The application must be filed within one year after all proceedings, including appeals, end.

When the Fund pays, the broker's license is automatically suspended and won't be reinstated until the Fund is repaid in full with interest (§ 93A-22). A broker who loses a commission cannot claim against the Fund (§ 93A-25).

Condominiums and planned communities

Condominium Act (Chapter 47C). When a declarant must deliver a public offering statement, the purchaser has an absolute right to cancel within seven calendar days after signing, and no conveyance may occur during that period (§ 47C-4-108). On a resale, the unit owner gives the prospective purchaser, before conveyance, a statement of the monthly common expense assessment and other fees (§ 47C-4-109).

Planned Community Act (Chapter 47F). The Act applies in full to planned communities created on or after January 1, 1999, and certain sections, including the assessment-lien rule in § 47F-3-116, also apply to older communities unless their declaration or articles provide otherwise. It doesn't apply to those with 20 or fewer lots, or to all-nonresidential communities, unless the declaration opts in (§ 47F-1-102). An assessment unpaid for 30 days or longer becomes a lien once a claim of lien is filed with the clerk of superior court (§ 47F-3-116).

Timeshares (Article 4 of Chapter 93A)

• A developer may not sell timeshares that must be registered without a certificate of registration from the Commission. People selling timeshares generally need a broker license unless exempt (§ 93A-40(a)).
• A purchaser may cancel until midnight of the fifth day after the later of signing the contract or receiving the public offering statement. This right cannot be waived, and no closing may occur until it expires (§ 93A-45(a)).
• Refunds after cancellation are due within 20 days of demand, or 5 days after the purchaser's funds clear, whichever is later (§ 93A-45(c)).

BPOs, CMAs and unfair service agreements

A licensee other than a provisional broker, with an active license in good standing, may prepare a broker price opinion or comparative market analysis for a fee (§ 93A-83(a)). The Article's requirements don't apply when no fee is charged.

Under § 93A-88.2, a real estate service agreement lasting more than one year is unfair and void if it aims to run with the land or bind future owners, allows assignment without the owner's notice or consent, or creates a lien on the property.

Familial status

Household with a minor under 18 and a parent, custodian or designee, plus pregnant persons and those securing custody.

Public offering statement

The disclosure a developer gives a condominium or timeshare purchaser. For a condominium, it must be delivered before the contract is signed, and the 7-day cancellation period runs from signing. For a timeshare, the 5-day period runs from the later of signing or receiving the statement and required documents.

Where this shows up on the exam

Other NC Laws is 11 of the 60 scored State items in the Pearson NC outline (April 2026), the third-largest area. Fair housing classes and exemptions, the Recovery Fund caps, the 7-day condo and 5-day timeshare cancellation periods, and the provisional broker BPO limit are the most reliable targets.

Sources

North Carolina law as published by the General Assembly and the Office of Administrative Hearings, checked 2026-11-05:

• 21 NCAC 58A .0104(b)
• N.C.G.S. § 41A-3(1b)
• N.C.G.S. § 41A-4(a)
• N.C.G.S. § 41A-4(a)(3)
• N.C.G.S. § 41A-4(a)(5)
• N.C.G.S. § 41A-4(a)(6)
• N.C.G.S. § 41A-4(a)(7)
• N.C.G.S. § 41A-6(a)(1)
• N.C.G.S. § 41A-6(a)(2)
• N.C.G.S. § 41A-6(a)(3)
• N.C.G.S. § 41A-6(a)(4)
• N.C.G.S. § 41A-6(a)(5)
• N.C.G.S. § 41A-6(a)(7)
• N.C.G.S. § 41A-7(a)
• N.C.G.S. § 41A-7(b)
• N.C.G.S. § 47C-4-108(a)
• N.C.G.S. § 47C-4-109
• N.C.G.S. § 47F-1-102(a)
• N.C.G.S. § 47F-1-102(b)(1)
• N.C.G.S. § 47F-1-102(b)(2)
• N.C.G.S. § 47F-3-116(a)
• N.C.G.S. § 93A-16(a)
• N.C.G.S. § 93A-17(a)
• N.C.G.S. § 93A-17(a)(3)
• N.C.G.S. § 93A-17(a)(3)-(4)
• N.C.G.S. § 93A-21(a)(1)
• N.C.G.S. § 93A-21(a)(2)
• N.C.G.S. § 93A-21(a)(3)
• N.C.G.S. § 93A-21(a)(4)
• N.C.G.S. § 93A-22
• N.C.G.S. § 93A-25
• N.C.G.S. § 93A-40(a)
• N.C.G.S. § 93A-45(a)
• N.C.G.S. § 93A-45(c)
• N.C.G.S. § 93A-83(a)
• N.C.G.S. § 93A-83(a)(3)
• N.C.G.S. § 93A-88.2(a)
• N.C.G.S. § 93A-88.2(a)(3)
• Pearson VUE, Real Estate Licensing in North Carolina (April 2026), Examination Content Outline