Residential Square Footage Guidelines

Since 1999, the North Carolina Real Estate Commission has produced and distributed the Residential Square Footage Guidelines (“Guidelines”).  The Guidelines booklet can be found on the Commission website under Publications and then Guides.

The Guidelines booklet explains how to measure residential properties, the definition of living area, and provides numerous examples of various types of residential buildings.  Brokers should follow the Guidelines any time they are measuring residential property.  Alternatively, brokers can instead use the standards from the American National Standards Institute (“ANSI”). Brokers-in-charge should use the Guidelines as a training tool for their brokers.

Brokers are not required by the Real Estate License Law or Real Estate Commission rules to report the square footage of properties offered for sale or rent.  However, when brokers do report square footage, including in a multiple listing service, it is essential that it is accurate. There have been many disciplinary actions against brokers who failed to accurately report heated living area, which constitutes a misrepresentation under N.C.G.S. § 93A-6(a)(1).

What Counts

Living area (sometimes referred to as “heated living area” or “heated square footage”) is space that is intended for human occupancy and is:

• Heated by a conventional heating system or systems (forced air, radiant, solar, etc.) that are permanently installed in the dwelling — not a fireplace or portable heater — which generates heat sufficient to make the space suitable for year-round occupancy

• Finished, with walls, floors, and ceilings of materials generally accepted for interior construction (e.g., painted drywall/sheet rock or paneled walls, carpeted or hardwood flooring, etc.) and with a ceiling height of at least seven feet, except under beams, ducts, etc. where the height must be at least six feet four inches [Note: In rooms with sloped ceilings (e.g., finished attics, bonus rooms, etc.) you may also include as living area the portion of the room with a ceiling height of at least five feet if at least one-half of the finished area of the room has a ceiling height of at least seven feet.]

• Directly accessible from other living area (through a door or by a heated hallway or stairway)

What Doesn’t Count

• Areas that are not heated by a permanent heat source (fireplace does not count)
• Unpermitted areas – The square footage of unpermitted additions or improvements must be separately identified when making representations concerning square footage, and brokers must inform prospective buyers that there is no permit for the addition
• Rooms with a ceiling height under seven feet with two exceptions for areas under beams or ducts and areas with a sloped ceiling (see above for details)
• Rooms that are not accessible from other living area, as defined above
• Bay windows that do not reach the floor or are less than seven feet tall
• Chimney base if external to the building (chimney hearth does count)
• Mechanical rooms that are not located within the living area
• Decks, balconies, porches, garages and carports

Newly licensed brokers are taught how to measure a building using the Guidelines booklet in Postlicensing 301.  For those who need a refresher, there are several continuing education elective courses about measuring square footage.  Brokers can search for these courses on the Commission website.