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North Carolina Residential Property Disclosure Statement: Notes for Sellers and Buyers

By
Real Estate Broker/Owner with Realty Arts NC Broker License #235526

The North Carolina Residential Property Disclosure Statement can be filled out by sellers on line, and printed out.

NOTE:  North Carolina Consumers should discuss questions about disclosure with their professionals, attorney or real estate agent.  While none of the following is meant as legal advice, and readers should not assume I am offering them agency representation, here are some informal notes to consider:

For Sellers:

You pretty much have to do it.  You are required to offer this completed form when selling property, unless your sale falls into a Disclosure exemption.  Ask your professional.

Your agent can not/should not complete this for you, unless your agent is also an owner of the property.

You can't lie.  Truly, I hope that is not a disappointment.  If you say one of the listed components has no problems, you need to know or believe that there is no problem.  If you just spent the weekend putting primer/sealer on and repainting the wet spot on the bathroom ceiling without fixing the leaky roof?  You might be charged with fibbing if you state that the roof has no problems...

You can select "No Representation."  In other words, you have nothing to say about the property.  That may be a good thing to mark if you do not know anything about the individual component.  It is often used by investors or beneficiaries of an estate who have not lived in the property.  I have been told that many attornies advise that all Seller mark "No Representation," because it reduces your exposure to liability.  Right, I think.  But, not being an attorney, I'm not qualified to give that advice.  However, I can tell you as a Buyers Agent, when I see blatant "No Representation" tactics, it sets off warning bells.  Often I caution my Buyer that the Seller may have something to hide.

You have to present the disclosure on a timely basis, or a contract can be terminated by the Buyer.  Just do it.  Print 20 copies and leave them in the house.  Tell your Listing Agent to upload the form to the MLS listing, so it is readily available.  Why put a transaction on hold because the Buyer's Agent has to call to have one faxed (FAXED?  Oh, yeah, faxes... Via time machine, from the Stone Age.)

 

For Buyers and Sellers:

You aren't in Kansas anymore, Toto.  We might do things differently than in the state you left.  Learn and roll with it.

Read the form.  Tell your agent to read the form.  One of you just might learn something about the form, the rules, or even the property. 

 

For Buyers:

You are in a "Caveat Emptor" state.  While current trends are moving toward more support for Buyers in rules and legislation, you are responsible for most of the discovery and due diligence on the property.  Let your Realtor help you.  Select a Realtor who CAN help you.

"No Representation" is NOT a crime in North Carolina.  It might just clarify for you that the Seller just does not know.  Do your own due diligence and inspection/investigation.

Don't assume the Seller didn't make an error.  Many people just do not understand what they are completing.  Do your own due diligence and inspection/investigation.

Don't assume the Seller didn't lie.  Sadly, it isn't a perfect world.  Do your own due diligence and inspection/investigation.

Working with Relocation Buyers in Cary and Raleigh, I often see the confusion that they have regarding the disclosure requirements in our state vs. their home state.  I think it is part of my job to educate the client in disclosure requirements, and the meaning of the disclosures. 

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Scan the QR Code with your Smartphone to Email MeQR CodeMike Jaquish, REALTOR®

919-880-2769 www.RealtyArts.com

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Independent Broker/Owner, Realty Arts

130 Towerview Court,

Cary, NC

Comments(2)

Marcia Hawken
WILLIAM RAVEIS - Naples, FL
Naples Luxury Specialist

Mike, I have that all the time in Naples.  Most of my clients are retirees coming from Northern States and I have to walk them through all of our disclosures.  We have many.  Mold is one area they are not familiar with and radon is becoming an issue as well.  I encourage buyers to get every last inspection , not just a general.  It will save them a lot of money and heartache.  I have even started having inspections done by sellers to find problems and fix them before it becomes an issue on a sale.  Good post!

Sep 26, 2009 10:53 PM
Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate

Thanks, Marcia!

It is part of our function to open their eyes to the fact that real estate laws and practices, like real estate markets, are locally defined.

Sep 26, 2009 10:57 PM