In North Carolina, selling real estate involves a series of “mandatory” disclosures designed to inform potential buyers about the condition and history of a property. These disclosures are crucial for providing transparency and ensuring buyers make well-informed decisions.
North Carolina law requires sellers to complete a Residential Property and Owners’ Association Disclosure Statement. This covers various property conditions, including structural issues, systems, fixtures, environmental hazards and property restrictions. Sellers have the option on this form to answer yes, no, or no representations. Most sellers choose to select no representations, which as a result, renders the form to have littie value to the potential buyer. If a seller chooses to answer yes or no, they can potentially be subject to a lawsuit in the future if the buyer discovers they have been misled by the seller.
Structural and system disclosures
The disclosure form addresses many aspects about the property’s physical structure and various systems in the home. This includes the roof’s condition, foundation, plumbing, electrical systems, heating and cooling systems and any known appliance issues remaining with the property. Again, the seller may answer yes, no or no representations to these questions. This is why it is critical that a potential buyer have the property inspected so that issues with the property can be discovered by the buyer.
Completing a disclosure statement accurately and honestly is a legal requirement for the sale of used properties in North Carolina. The form must be completed by the Seller as part of the real estate purchcase process. If the Seller chooses to answer yes or no to any of the questions on the disclosure form, and the Seller has lied, they can be subjected to a lawsuit for fraud.
If you are selling or buying real estate in North Carolina, it is important to consult with a real estate attorney before you sign an Offer to Purchase. While your broker can draft the Offer to Purchase, they cannot provide legal advise unless they are also a North Carolina Licensed Attorney.