From Offer to Closing: Selling Your Outer Banks Property/FAQs
1031 exchange/using equity to upgrade back to top
The 1031 tax-deferred exchange is a process that allow a taxpayer to use capital gains (profits) earned from one real estate transaction for the purchase of a “like kind” investment without penalty. Of course, certain conditions apply:
Properties must of “like kind” meaning the old property must have been an investment or commercial property if he/she is looking to purchase an investment or commercial property. Total capital gains earned from transaction must be reinvested into the new property or is subject to taxation.
New investment property must be identified by the seller within 45 days of the closing of old property
Seller must take possession of the new property with 180 days of the closing on the old property
All transactions must go through a Qualified Intermediary. Always consult with your attorney, CPA or other financial professional for qualified intermediaries in your area and specifics on your transaction.
Vacation Rental Act back to top
The North Carolina Vacation Rental Act (NCVRA) requires the seller of any rental property to be prepared to forward any advance payments to the buyer of the property within 30 days of closing. NCVRA also addresses contracts, notification of reservations already on the books, hurricane refunds, “fit and habitable” issues, evictions and advance payments already disbursed to the seller. There’s a lot to know and understand, remember your REALTOR® and our licensed property managers can also help answer any questions.
Rental Prorations back to top
Once the seller no longer has interest in the home (closing) they are required to have all advanced payments to the buyer within 30 days. For more information on rental prorations contact your financial professional, REALTOR® or licensed property managers.
Understanding Agency back to top
North Carolina law requires each real estate agent to form one of the following agency relationships and to disclose the type of relationship writing to all parties.
- Seller agency – owner of real estate agrees to engage services of a brokerage firm in order to sell the piece of real estate. The seller is the principal and the broker (brokerage firm) is the owner’s agent.
- Buyer agency – prospective buyer seeks the assistance of a real estate broker (or firm) to locate a home/property. The buyer is the principal and the broker is the buyers agent.
- Dual Agency – brokerage firm is representing both the seller and the buyer in any one transaction. Dual agency requires full disclosure to both parties involved. Both the seller and the buyer are principals and the broker is the agent of both.
- Designated agency—form of dual agency where one agent in a firm is ‘designated’ to represent the interests of the seller and another agent is ‘designated’ to represent the interest of the buyer. Designated agency can be requested by either side to avoid any conflict of interest.
