If you are thinking about selling your existing Raleigh home, condo or townhome, you are required to provide the buyer a copy of your Residential Property Disclosure Statement. It makes no difference if you are selling your existing home, condo or townhome yourself or hiring the services of Raleigh REALTOR.

The Scope of the Residential Property Disclosure Statement

In case you are wondering what the Residential Property Disclosure form covers, below is quoted section from the state of North Carolina for the items covered in the form for existing  single-family homes, condos and townhomes:

47E‑4.  Required disclosures:
(a)       With regard to transfers described in G.S. 47E‑1, the owner of the real property shall furnish to a purchaser a residential property disclosure statement. The disclosure statement shall:

(1)       Disclose those items which are required to be disclosed relative to the characteristics and condition of the property and of which the owner has actual knowledge; or

(2)       State that the owner makes no representations as to the characteristics and condition of the real property or any improvements to the real property except as otherwise provided in the real estate contract.

(b)       The North Carolina Real Estate Commission shall develop and require the use of a standard disclosure statement to comply with the requirements of this section. The disclosure statement shall specify that certain transfers of residential property are excluded from this requirement by G.S. 47E‑2, including transfers of residential property made pursuant to a lease with an option to purchase where the lessee occupies or intends to occupy the dwelling, and shall include at least the following characteristics and conditions of the property:

(1)       The water supply and sanitary sewage disposal system;

(2)       The roof, chimneys, floors, foundation, basement, and other structural components and any modifications of these structural components;

(3)       The plumbing, electrical, heating, cooling, and other mechanical systems;

(4)       Present infestation of wood‑destroying insects or organisms or past infestation the damage for which has not been repaired;

(5)       The zoning laws, restrictive covenants, building codes, and other land‑use restrictions affecting the real property, any encroachment of the real property from or to adjacent real property, and notice from any governmental agency affecting this real property; and

(6)       Presence of lead‑based paint, asbestos, radon gas, methane gas, underground storage tank, hazardous material or toxic material (whether buried or covered), and other environmental contamination.

The disclosure statement shall provide the owner with the option to indicate whether the owner has actual knowledge of the specified characteristics or conditions, or the owner is making no representations as to any characteristic or condition.
(c)       The rights of the parties to a real estate contract as to conditions of the property of which the owner had no actual knowledge are not affected by this Article unless the residential disclosure statement states that the owner makes no representations as to those conditions. If the statement states that an owner makes no representations as to the conditions of the property, then the owner has no duty to disclose those conditions, whether or not the owner should have known of them. (1995, c. 476, s. 1.; 1997‑472, s. 1.)

Raleigh Real Estate Agents Must State All Material Fact

Know this, just because a seller provides this statement does not mean a Raleigh real estate agent is relieved of his or her responsibility to state all known material facts as it relates to the subject property. As an example; if a Raleigh real estate agent knows the basement leaks, he or she must disclose this important information (material fact) to all buyers. Failure by an agent to state any known material fact about a property (single-family home, townhome or condo) could mean serious disciplinary action by the NC Real Estate Commission.

All the More Reason to Hire an Experienced Raleigh REALTOR

Part of the fiduciary relationship between a Raleigh REALTOR and the seller or buyer “client” is protecting that client from legal peril, educating that client and giving skillful service. To do otherwise would be detrimental to the client. We take these responsibilities seriously and we are committed to offering the absolute best service and guidance possible.

Offer Your Feedback

Are you aware of all the various disclosures required in the real estate transaction?

Until my next post,

Jim