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12 min read Jan 17, 2024

Seller Disclosure Requirements in North Carolina

Sellers are often required to list out all the physical aspects of their property to prospective home buyers. This increases clarity and facilitates a better sale. That is exactly where a seller disclosure statement comes into the picture.

Sometimes, to make a quick home sale, sellers tend to hide the defects in the house. However, if the buyer finds material defects later, the seller may face legal consequences. To avoid these, our guide will take you through North Carolina Residential Property Disclosure.

» Selling A House In North Carolina: Know The Process To Sell Your Home In North Carolina.

What are Seller Disclosures?

The Seller Disclosure form is a standard checklist form containing material defects and features of the property. It specifically provides information about the property that may negatively affect the value of the house. 

If there are material defects in a property that may impact the value of the property and the seller is aware of them, then the seller must disclose them. However, sellers should report these defects to the best of their knowledge and understanding.

The aim of Seller Disclosure is to maintain transparency in the real – estate transaction to keep the buyer aware of any defects present in the house.

» Selling Home As Is In North Carolina: Here Is Houzeo’s Guide On How To Sell Your Home As-Is In North Carolina.

Importance of Seller Disclosures

Seller’s disclosures serve the following purpose in real estate transactions:

🔎Give Complete Information About The PropertyDisclosures help communicate the defects present on the property. They ensure that all the stakeholders involved in the transaction are well aware of the property's history.
⚖️Protects Sellers Against Legal LiabilitiesOnce you disclose all the known defects present in the house or which come to light during the inspection, you may be exempted from any future liability against those defects.
👍Develops CredibilityHonesty, accuracy and transparency are of utmost importance when selling your house. Disclosures are a way of achieving all of these and thereby enhancing your credibility.

» Sell My House Fast For Cash: Check Out The Best Options To Sell Your Home Fast for Cash

North Carolina Real Estate Disclosure Laws

The sellers in North Carolina are bound by specific federal and state laws in relation to the sale of their residential property.

NC Real Estate Disclosure law mandates that sellers identify and disclose any known defects in their property before a purchase contract is signed. The purpose of this is to ensure that buyers are not surprised by a problem in the home and to defend the sellers from legal proceedings.

Selling a home in North Carolina? Here are the three NC Residential Property Disclosures you should be aware of:

  • Residential Property and Owners’ Association Disclosure Statement
  • NC Residential Property Disclosure Mineral Gas
  • Federal Disclosure of Information on Lead-Based Paint

NC Residential Property Disclosure Statement

Codified as North Carolina G.S. 47E, the act requires the sellers of residential real estate such as:-

  • single-family homes,
  • individual condominiums,
  • townhouses, and
  • buildings with up to 4 dwelling units

to complete a Residential Property and Owners’ Association Disclosure Statement disclosing conditions and material defects of the property.

This applies to any transfer of residential property including leases with an option to purchase, whether a licensed real estate agent is involved.

    ✍️ Editor’s Note: Latent material defects are the ones which are not apparent or visibly recognizable defects, but they significantly affect the value of the property. Generally, these defects pose a threat to the safety or health of the occupants.

North Carolina Mineral and Oil and Gas Rights Disclosure

Codified as North Carolina G.S. 47E – 4.1, this provides further disclosure relating to mineral, oil, and gas rights, which is unique to North Carolina.

The form has a series of six questions that the seller must answer to disclose whether the mineral, oil, and gas rights for the property are owned by someone other than the seller.

Sellers sometimes lease or sell the subsurface mineral rights on their property to a third party. This means that if sellers have “severed” their mineral rights, the third party could potentially have the perpetual right to drill, mine, explore and remove any of the subsurface mineral resources on or from the property. These minerals or materials could be extracted directly from the surface of the property or from a nearby location, even if the property is sold to a new owner.

The North Carolina Real Estate Commission provides a form – Mineral and Oil and Gas Rights Mandatory Disclosure Statement. The seller must fill it out and provide written copies of this form to potential buyers when the buyer makes an offer to purchase the property.

📝 Note: For some transactions, this Disclosure Statement is not required. For a complete list of exemptions, see North Carolina G.S. 47E.

» Sell My Home Fast North Carolina: Read Our Blog If You’re In Dire Need To Sell Your House Fast In North Carolina.

Lead-Based Paint Disclosure NC

The Residential Lead-Based Paint Hazard Reduction Act passed in 1992 requires the disclosure of any lead-based paint or chipped paint in any property built before 1978. Every buyer of any residential real property must be notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning.

This federal law requires the sellers of residential real estate to complete the Lead-Based Paint Disclosure NC Form to provide the potential buyer with any information on lead-based paint hazards from risk assessments or inspections.

Sellers must provide a 10-day period for buyers to conduct a paint inspection or risk assessment for lead-based paint or lead-based paint hazards.

» Home Inspectors in North Carolina: Get your home inspected by NC’s top home inspectors

🤔 Too Many Disclosures Giving You A Headache?

Worry not! Houzeo’s cutting edge technology automatically provides you with the necessary disclosures, curated to match your property and location.


Why should you be honest in making disclosures about your North Carolina home?

North Carolina Seller Disclosures are meant to protect both sides of the home-purchase transaction, putting the buyer on notice and preventing the seller from being held liable for future problems. Full disclosure will protect sellers from future legal claims and give buyers confidence that the seller is being transparent.

Remember, just because a seller discloses a problem doesn’t mean the seller has to fix it. Interested buyers may be anxious to close the deal as well, and may overlook minor issues. Serious defects may lead to negotiation, but may not be a deal-breaker for some buyers.

Full and thorough disclosure is important to protect both the buyer and seller, to help ensure a smooth closing of the sale, and to get the best deal for all involved.

Most Common Mistakes By FSBO Home Sellers in Disclosures 

The main object of disclosures in any area is to give clarity and perspective to a buyer. Buyers who are looking for a home usually have certain criteria in mind before searching for a home. A seller disclosure acts as a bridge to close these doubts, giving buyers a reason to have faith in you and your deal.

  • One of the biggest mistakes a seller can make is not giving disclosures at all. The lack of trust between a buyer and seller can demotivate a buyer from considering your property altogether. Hence, it is suggested that sellers complete all disclosure formalities as soon as possible, even though it may not be legally required in your state.
  • Likewise, sellers also get an option to mark a point as ‘unknown’ in disclosures. This gives you ample opportunity to be honest in your disclosures. Also, marking a certain disclosure clause as ‘unknown’ shifts the burden on a buyer to inspect that particular problem. Hence, don’t make the mistake of lying on your disclosures, as that would count as fraudulent misrepresentation and attract a lawsuit.
  • Most state laws prescribe that the disclosures should be provided before closing. As an FSBO seller, it is your duty to provide disclosures as soon as possible, since you do not have a real estate agent to do these things for you.
    ✍️ Pro Tip: Sellers who are selling their house the FSBO way are advised to keep their Disclosure Statement ready before listing on the MLS. It increases your credibility and reliability from a buyer’s perspective, as they get an idea of the property’s condition early on.

» How To Sell A House By Owner In North Carolina: Are You Considering Selling Your House Without A Realtor? Here Are Our Tips For A Smooth Selling Process.

Tips to Minimize Issues in North Carolina Real Estate Disclosure Documents

  • Review and Verify – There’s a time allowance (some permit 10 days) to review and verify everything about your Purchase and Sales Agreement—also the square footage, home usage, and marketing.
  • Ask Questions – Ask questions when in doubt. This would help you in avoiding future trouble.
  • Hire A Professional Inspector – A professional inspector can help you gather backup information about the property’s condition. You can also opt for a pre-inspection before listing. North Carolina Home Inspectors – Find out the best home inspectors in North Carolina.
  • Disclose Everything – To avoid problems in your home disclosure statement, disclose everything you know honestly. Even a minor issue could turn out to be important.
  • Get A Licensed Agent Involved – The best way to avoid disclosure issues is to get licensed NC real estate agents who manages and assists in the process.
    ✍️ Pro Tip: List Your Property With Houzeo

    One of the best ways to minimize problems in your seller’s disclosure is to Purchase the “Contract to Close Upgrade Package”. A Licensed broker will review your paperwork to make sure it is appropriate. In addition, you should also have the settlement agent review the paperwork so you cover all bases.

    » More: Start your FREE listing NOW!

Final Word: Complexity of Seller Disclosures in North Carolina

Level of ComplexityAverage
Is North Carolina a Caveat Emptor State? Yes
Is North Carolina a Non-Disclosure State? No

NC Seller Disclosure follows the rule of ‘caveat emptor,’ i.e. let the buyer beware. Thus, it is a buyer’s duty in North Carolina to act with due diligence while buying a home, as the seller is not made legally liable to make certain disclosures.

North Carolina Seller’s Disclosures Statements are a little complicated. Selling your house FSBO is usually good, but then you would have to deal with all the disclosures on your own. This demands that you be aware of all the disclosure requirements and that any mistake can cost you dearly. Houzeo can help you with this.

    ✍️ Editor’s Note: Though selling your home yourself on a For Sale By Owner website can save you thousands in commission, we highly recommend you add a Flat Fee MLS listing to your marketing strategy. Check out the best Flat Fee North Carolina.

» NC Flat Fee MLS

By listing your property with Houzeo, you get access to all forms in electronic format. And that too, for FREE! Houzeo has segregated all the disclosures state-wise so that you don’t have to hunt for Tennessee seller disclosures separately.

Check out some of the Houzeo reviews and how it has helped customers around the US.

*Seller disclosures are primarily the responsibility of a home seller. Regardless of the service, you engage in, you are required to ensure seller disclosures provided by you are complete and accurate to your best knowledge. Houzeo is not a brokerage or a licensed agent. It is a tech platform, and the tips presented here should not be construed as advice for which a real estate or attorney license is required.

Frequently Asked Questions

1. Do sellers need to disclose occurrence of prior death in the house?

No, North Carolina Seller Disclosure Laws do not require disclosure of the occurrence of prior death in the house.

2. Under the North Carolina Real Estate Disclosure laws, who is exempt from making disclosures?

The people who are exempt from making disclosures are any person whose property is transferred pursuant to the following:- a court order, mortgage deed, or the spousal or fiduciary transfer.

3. Do sellers have to disclose mold in the house ?

Yes, any material defects which are health or safety hazards must be disclosed prior to the contractual binding between the Parties.

Also Read:

For NC Seller –

For NC Buyer-

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