NORTH CAROLlNA RESIDENTIAL PROPERTY DlSCLOSURE ACT
GUIDELINES

For the complete text of the Residential Property Disclosure Act, see
North Carolina General Statutes Chapter 47E

The Residential Property Disclosure Act ("Act', requires owners of residential real estate to furnish purchasers a Residential Property Disclosure Statement ("Statement',, whether or not the owner is assisted by a licensed real estate broker or salesman. The form on the reserve side of this sheet meets the requirements of the Act.

The Act covers the transfer of residential property--from a single family dwelling unit to buildings containing up to four dwelling units. It applies whether the property is to be sold, exchanged, optioned or purchased under a lease with option to purchase (unless the tenant is already occupying or intends to occupy the dwelling). Certain transactions are exempted from the Act, including the first sale of a dwelling which has never been inhabited. [For a complete list of exemptions, see N.C.G.S. 47E-2.]

Completing the Statement

As the owner of the property, you must enter on the Statement the address of the property "sufficient to identify it) and sign and date it. You must also check la one of the boxes for each of the six items listed.

If you check "Yes" for any item, you must describe the problem ("septic tank malfunctions" "electrical outlet in living room doesn't work", etc.). If you are using the services of a real estate broker or salesman, you are still responsible for completing and delivering the Statement to the purchaser. Instead of inserting your written description of the condition, you may attach to the Statement any report which you might have from an engineer, contractor, pest control operator or other expert or public agency describing H. If you attach a report from an expert or public agency, you will not be liable for any inaccurate or incomplete information contained in it so long as you were not grossly negligent in obtaining or transmitting the information.

If you check "None Known" for an item, you are stating that you have no actual knowledge of any problem. If you check "None Known" when you know there is a problem, you may be liable for making an intentional misstatement.

[Note: If you check "Yes" or "None Known" and something happens to make your Statement incorrect or inaccurate (for example, the roof begins to leak), you must promptly give the purchaser a corrected Statement or correct the problem.]

If you check "No Representations", you have no duty to disclose the conditions of the property, whether or not you should have known of them.

If you are assisted in the transaction by a licensed real estate broker or salesman, the agent must disclose any material facts about your property which the agent knows or should reasonably know. The real estate agent has a duty to disclose material facts regardless of your responses on the Statement.

Furnishing the Statement

You must give the completed Statement to the purchaser no later than the time the purchaser makes an offer for your property. You should give the purchaser a copy of the Statement containing your signature, and you should keep a copy signed by the purchaser.

If you do not give the Statement to the purchaser by the time the purchaser makes an offer, the purchaser may withdraw the offer or terminate any resulting sales contract at any time within three days after receiving the Statement. However, once the purchaser closes the transaction or occupies your property, the purchaser gives up the right under the Act to terminate the contract or withdraw the offer.