North Carolina Residential Property Disclosure

All Sellers in North Carolina, with few exceptions, have to complete the North Carolina Residential Property Disclosure Statement

The easiest way to do this is to complete the form on line, at the NC Real Estate Commission site, and to print it off.

This yields the crispest original, and gives us a form that will survive multiple scans and faxes better than most hand-completed forms.  The Listing Agent can then upload the completed form to the MLS listing attachments, so Buyers agents have access to it.

Easy, efficient, effective!

Exceptions to disclosure requirements include foreclosures, new construction that has never been lived in, lease/option transactions.

But, for resale, the homeowner should plan on completing the form.  Agents do not fill out the disclosures, as it is the Seller’s role to tell what they know about the home.  as the instructions on the form indicate, Sellers really do not have to disclose much.  They legally cannot deny problems if they know they exist, but they have the alternative to mark “No Representation.”

“No Representation” is the weakest form of disclosure, and can affect market value.  It can be used legitimately when the Seller has no knowledge of the property, as in an estate sale.  But it can also be used when Sellers would rather not disclose an issue.   It is not uncommon for Sellers to mark “No Representation” when the home has polybutylene piping, as that is a negative for many Buyers.  A fully completed disclosure with “No Representation” in a few key areas can therefore be a red flag to an alert REALTOR® or Buyer.

4 thoughts on “North Carolina Residential Property Disclosure”

  1. Hi Mike,

    Quick question. What recourse do I have against a seller that had prior knowledge of a faulty septic system and didn’t disclose it? The company that pumped it several times in the past said that water ran back in when he pumped it and he told the owners that they needed to do something with it. Also, the septic inspector did NOT uncover the D-box as “required” in the inspection. Is he liable as well? What are my options and should I contact someone with the NC Real Estate commission?

    Thanks,
    Jim

    1. Jim,
      Any time you ask about recourse, I think you are getting into legal territory. If you strongly feel you have been wronged, you probably need to talk to an attorney.
      Going to the NC Real Estate Commission would be a later step, I think.

  2. The following questions are peretaining to North Carolina laws:
    What about renting a residence where the last tenant was murdered inside the property. Does that have to be disclosed to the next renter?
    What about selling a house where the previous owner died of natural causes in the house? does that have to be disclosed to the new buyer?

    1. Hi, John,
      It is my understanding that murder and death are not material to the property and by themselves do not have to be disclosed.
      However, you cannot legally be lied to, so if murder and death in a property are important to you, ask about them.

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