Property ManagementIntermediateNorth Carolina Exam

Which of the following is a key provision of the NC Residential Rental Agreements Act regarding security deposit deductions?

ALandlords may deduct for normal wear and tear

BLandlords may deduct only for damages beyond normal wear and tear, unpaid rent, and other specified itemsCorrect

CLandlords may deduct any amount without itemization, though outcomes can differ depending on circumstances

DTenants must agree to all deductions in writing

Why Landlords may deduct only for damages beyond normal wear and tear, unpaid rent, and other specified items Is Correct

Answer B: Landlords may deduct only for damages beyond normal wear and tear, unpaid rent, and other specified items

NC law permits landlords to deduct from security deposits only for damages beyond normal wear and tear, unpaid rent, breach of lease terms, and other allowable items — but not for ordinary wear and tear.

Exam Tip: Property Management

Property management questions cover landlord-tenant law, security deposits, and maintenance responsibilities. Know the differences between gross, net, and percentage leases.

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Key Terms to Know

Earnest Money

A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.

Contingency

A condition in a purchase contract that must be satisfied before the sale can proceed to closing.

Purchase Agreement

A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.

Option Contract

A contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.

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Real Estate Contracts Guide

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