Square Footage in NC Real Estate: What Brokers Need to Know (and Get Right)
In North Carolina, listing square footage isn’t just about marketing—it’s a matter of professional duty. The NC Real Estate Commission (NCREC) holds brokers accountable for how square footage is calculated, reported, and disclosed. Mistakes here can lead to misrepresentation complaints, delayed closings, or even financial liability.
So whether you’re measuring it yourself or relying on a third party, here’s what every NC broker should know about square footage, according to the NCREC Residential Square Footage Guidelines.
You Are Responsible for Accuracy
Even if you didn’t measure the property yourself and relied on a third party to measure the property for you, the listing broker is responsible for ensuring the accuracy of the square footage advertised in MLS or marketing materials.
Why it matters:
Buyers make decisions—and lenders assign value—based on this information. If it’s wrong, you’re on the hook.
What Counts as "Living Area"?
According to the NCREC, for square footage to count as heated living area, it must be:
✅ Heated by a permanently installed system (not space heaters or window units)
✅ Finished with walls, ceilings, and floors comparable to the main living areas
✅ Directly accessible from other finished living areas (i.e., no going through an unfinished garage or outside)
Examples that count:
Main levels of a home
Finished basements (if they meet all criteria)
Finished bonus rooms with adequate ceiling height and access
Examples that do NOT count:
Detached structures (even if heated)
Unfinished attics or basements
Enclosed porches that don’t meet all three standards
Ceiling Height Rules
To be counted in the total square footage:
Ceiling height must be at least 7 feet
In sloped areas (like bonus rooms), only portions with at least 5 feet in height can be included—and only if half or more of the room meets the 7-foot rule
What If You're Not Comfortable Measuring?
You’re not required to measure square footage yourself—but if you don’t:
You must disclose the source (e.g., appraiser, measuring service)
You must reasonably believe the source is reliable
If the source seems inaccurate, you must act to correct it
Best practice: Hire a professional appraiser or measurement service that follows the NCREC guidelines—not just ANSI standards. Colin Nieuburh with Crimson Appraisals and an instruct of Providence Real Estate Education measures houses as well.
Square Footage Disputes = Red Flags
Disputes about square footage are one of the most common complaints the NCREC receives. Misstating square footage—especially in a way that inflates value—can result in:
🚨 Ethics complaints
🚨 Commission liability
🚨 Civil lawsuits for misrepresentation
A Note for Buyer Agents
You don’t have to verify square footage—but if it seems off, you must alert your client and recommend they investigate during due diligence. Silence can become a liability.
Final Takeaways
You are responsible for the square footage accuracy if you list it
Always follow NCREC’s Residential Square Footage Guidelines
Disclose the source and report square footage honestly and clearly
When in doubt, hire a professional measurer
Ready to Measure Up?
At Providence Real Estate Education, we help brokers understand the details that make or break a compliant, professional transaction. Our continuing education courses dive into disclosure, representation, and everything NCREC expects from today’s real estate professional.
Need a refresher on square footage rules or a guide for your office?
Check out our CE course on Understanding Residential Appraisals. We’ll help you stay square with the rules—and your clients.
