Hello and welcome to JustAnswer. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.The Residential Property Disclosure Act, codified as North Carolina G.S. 47E, requires the seller of residential real estate to complete a form—known formally as the Residential Property and Owners’ Association
Disclosure Statement—disclosing conditions and defects with the property. The statute applies to any transfer of residential property (including leases with an option to purchase), whether or not a licensed real estate agent or broker is involved.
Specifically, the statute says that “a seller transferring residential real property
shall disclose, in writing, to the buyer, agent and subagent, as applicable, all material defects of that property that are known at the time the property is offered for sale.” The law also requires that sellers“provide the buyer with any information on radon from tests or inspections in [your] possession, and notify the buyer of any known radon hazards.”
The idea is to compel you to detail any facts of which you are aware that negatively affect the property. This could cover a wide variety of defects in your home, ranging from the condition of the roof to the condition of the gas tank. The legislature’s broader goal, of course, is to prevent the buyer from having any nasty surprises after moving into the home.
The North Carolina Real Estate Commission provides the approved form—a four-page document—that contains all of the necessary information. You must fill it out and provide written copies of this form to potential buyers.
The timing of your disclosure is important. According to ***** 47E-5, you must give the disclosure “no later than the time the purchaser makes an offer to purchase
, exchange, or option the property.” If you fail to deliver the statement, the buyer can rescind his or her offer of purchase by written notice within three days of receiving the disclosure. Avoid any instinct to give your buyer the disclosure at the last minute, before the purchase contract is supposed to be signed. This might seem like a smart strategy if you assume that the buyer won’t have the time to read the statement or investigate the conditions before signing the contract. But North Carolina intentionally gives the buyer a few days to back out of the deal, if he or she sees something troubling on the disclosure.