GSNC

§ 47E-1. Applicability.

This Chapter applies to the following transfers of residential real property consisting of not less than one nor more than four dwelling units, whether or not the transaction is with the assistance of a licensed real estate broker or salesman:

Sale or exchange,
Installment land sales contract,
Option, or
Lease with option to purchase, except as provided in G.S. 47E-2(10).

History

(1995, c. 476, s. 1; 1997-472, s. 5.)

Legal Periodicals. - For article, "Silence Is Golden: The Case for Mandatory Disclosure of Coastal Hazards and Land-Use Restrictions by Residential Sellers in North Carolina," see 25 N.C. Cent. L.J. 96 (2002).

CASE NOTES

Disclosure Statement Applies to Land Sales. - Although the seller was required by law to furnish a residential property disclosure statement to buyers at the time of the parties' property sale transaction and did not do so, the trial court properly dismissed the buyers' claim for damages pursuant to the Residential Property Disclosure Act, G.S. 47E-1 et seq., as the buyers' sole remedy under the Act was cancellation of the land sale contract; no separate action for damages was permitted under the Act for not providing the disclosure statement. Little v. Stogner, 162 N.C. App. 25, 592 S.E.2d 5 (2004).

§ 47E-2. Exemptions.

The following transfers are exempt from the provisions of this Chapter:
1. Transfers pursuant to court order, including transfers ordered by a court in administration of an estate, transfers pursuant to a writ of execution, transfers by foreclosure sale, transfers by a trustee in bankruptcy, transfers by eminent domain, and transfers resulting from a decree for specific performance.
2. Transfers to a beneficiary from the grantor or his successor in interest in a deed of trust, or to a mortgagee from the mortgagor or his successor in interest in a mortgage, if the indebtedness is in default; transfers by a trustee under a deed of trust or a mortgagee under a mortgage, if the indebtedness is in default; transfers by a trustee under a deed of trust or a mortgagee under a mortgage pursuant to a foreclosure sale, or transfers by a beneficiary under a deed of trust, who has acquired the real property at a sale conducted pursuant to a foreclosure sale under a deed of trust.
3. Transfers by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust.
4. Transfers from one or more co-owners solely to one or more other co-owners.
5. Transfers made solely to a spouse or a person or persons in the lineal line of consanguinity of one or more transferors.
6. Transfers between spouses resulting from a decree of divorce or a distribution pursuant to Chapter 50 of the General Statutes or comparable provision of another state.
7. Transfers made by virtue of the record owner's failure to pay any federal, State, or local taxes.
8. Transfers to or from the State or any political subdivision of the State.
The following transfers are exempt from the provisions of G.S. 47E-4 but not from the requirements of G.S. 47E-4.1:
1. Transfers involving the first sale of a dwelling never inhabited.
2. Lease with option to purchase contracts where the lessee occupies or intends to occupy the dwelling.
3. Transfers between parties when both parties agree not to complete a residential property disclosure statement or an owners' association and mandatory covenants disclosure statement.

History

(1995, c. 476, s. 1; 2011-362, s. 3(a); 2014-120, s. 49(a).)

Editor's Note. - Session Laws 2011-362, s. 4, provides: "The North Carolina Real Estate Commission shall develop and make available for homebuyers a brochure about restrictive covenants. The brochure shall include an explanation that unpaid assessments, fines, fees, or charges may result in foreclosure of the owner's property. The brochure shall be available by December 1, 2011."

The subsection (a) designation has been added at the direction of the Revisor of Statutes.

Session Laws 2014-120, s. 49(b), made the addition of subsection (b) and redesignation of former subdivisions (9) through (11) as subdivisions (b)(1) through (3) by Session Laws 2014-120, s. 49(a), effective January 1, 2015, and applicable to contracts executed on or after that date.

Session Laws 2014-120, s. 60, is a severability clause.

Effect of Amendments. - Session Laws 2011-362, s. 3(a), effective January 1, 2012, and applicable to real estate transfers or dispositions occurring on or after that date, added "or an owners' association and mandatory covenants disclosure statement" in subdivision (11).

Session Laws 2014-120, s. 49(a), effective January 1, 2015, added subsection (b) and redesignated former subdivisions (9) through (11) as subdivisions (b)(1) through (3). See Editor's note for applicability.

Legal Periodicals. - For 1997 legislative survey, see 20 Campbell L. Rev. 479 (1998).

§ 47E-3. Definitions.

When used in this Chapter, unless the context requires otherwise, the term:

"Owner" means each person having a recorded present or future interest in real estate that is identified in a real estate contract subject to this Chapter; but shall not mean or include the trustee in a deed of trust, or the owner or holder of a mortgage, deed of trust, mechanic's or materialman's lien, or other lien or security interest in the real property, or the owner of any easement or license encumbering the real property.
"Purchaser" means each person or entity named as "buyer" or "purchaser" in a real estate contract subject to this Chapter.
"Real estate contract" means a contract for the transfer of ownership of real property by the means described in G.S. 47E-1.
"Real property" means the lot or parcel, and the dwelling unit(s) thereon, described in a real estate contract subject to this Chapter.

History

(1995, c. 476, s. 1.)

§ 47E-4. Required disclosures.

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.
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.
With regard to transfers described in G.S. 47E-1, the owner of the real property shall furnish to a purchaser an owners' association and mandatory covenants disclosure statement.
1. The North Carolina Real Estate Commission shall develop and require the use of a standard disclosure statement to comply with the requirements of this subsection. 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. The standard disclosure statement shall require disclosure of whether or not the property to be conveyed is subject to regulation by one or more owners' association(s) and governing documents which impose various mandatory covenants, conditions, and restrictions upon the property, including, but not limited to, obligations to pay regular assessments or dues and special assessments. The statement required by this subsection shall include information on all of the following:
  1. The name, address, telephone number, or e-mail address for the president or manager of the association to which the lot is subject.
  2. The amount of any regular assessments or dues to which the lot is subject.
  3. Whether there are any services that are paid for by regular assessments or dues to which the lot is subject.
  4. Whether, as of the date the disclosure is signed, there are any assessments, dues, fees, or special assessments which have been duly approved as required by the applicable declaration or bylaws, payable to an association to which the lot is subject.
  5. Whether, as of the date the disclosure is signed, there are any unsatisfied judgments against or pending lawsuits involving the lot, the planned community or the association to which the lot is subject, with the exception of any action filed by the association for the collection of delinquent assessments on lots other than the lot to be sold.
  6. Any fees charged by an association or management company to which the lot is subject in connection with the conveyance or transfer of the lot to a new owner.
2. The owners' association and mandatory covenants 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 contained in the statement.
Repealed by Session Laws 2014-120, s. 49(a), effective January 1, 2015, and applicable to contracts executed on or after that date.
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 or the owners' association and mandatory covenants disclosure statement, as applicable, 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.

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.

History

(1995, c. 476, s. 1; 1997-472, s. 1; 2011-362, s. 3(b); 2012-143, s. 5; 2014-120, s. 49(a).)

Editor's Note. - Session Laws 2011-362, s. 3(b), which added subsection (b1) and inserted "or the owners' association and mandatory covenants disclosure statement, if applicable" in the first sentence of subsection (c), was applicable to real estate transfers or dispositions occurring on or after January 1, 2012.

Session Laws 2011-362, s. 3(g), provides the North Carolina Real Estate Commission shall develop and make available the standard disclosure form required by subsection (b1) of this section by December 1, 2011.

Session Laws 2011-362, s. 4, provides: "The North Carolina Real Estate Commission shall develop and make available for homebuyers a brochure about restrictive covenants. The brochure shall include an explanation that unpaid assessments, fines, fees, or charges may result in foreclosure of the owner's property. The brochure shall be available by December 1, 2011."

Session Laws 2012-143, provides in its preamble: "Whereas, in S.L. 2011-276, the General Assembly directed the Department of Environment and Natural Resources (now Department of Environmental Quality), in conjunction with the Department of Commerce, the Department of Justice, and the Rural Advancement Foundation (RAFI-USA), to study the issue of oil and gas exploration in the State and the use of horizontal drilling and hydraulic fracturing for that purpose, including the study of all of the following:

"(1) Oil and gas resources present in the Triassic Basins and in any other areas of the State.

"(2) Methods of exploration and extraction of oil and gas, including directional and horizontal drilling and hydraulic fracturing.

"(3) Potential environmental, economic, and social impacts arising from such activities, as well as impacts on infrastructure.

"(4) Appropriate regulatory requirements for management of oil and gas exploration activities, with particular attention to regulation of horizontal drilling and hydraulic fracturing for that purpose; and

"Whereas, pursuant to S.L. 2011-276, the Department of Environment and Natural Resources (now Department of Environmental Quality), in conjunction with the Department of Commerce, the Department of Justice, and the Rural Advancement Foundation (RAFI-USA), issued a draft report in March of 2012; and

"Whereas, pursuant to S.L. 2011-276, the Department of Environment and Natural Resources (now Department of Environmental Quality) received public comment regarding the draft report, including public comment received at public meetings held on March 20, March 27, and April 2, 2012; and

"Whereas, pursuant to S.L. 2011-276, the Department of Environment and Natural Resources (DENR) (now Department of Environmental Quality), in conjunction with the Department of Commerce, the Department of Justice, and the Rural Advancement Foundation (RAFI-USA), issued a final report on April 30, 2012; and

Whereas, the final report set forth a number of recommendations, including recommendations concerning all of the following:

"(1) Development of a modern oil and gas regulatory program, taking into consideration the processes involved in hydraulic fracturing and horizontal drilling technologies, and long-term prevention of physical or economic waste in developing oil and gas resources.

"(2) Collection of baseline data for areas near proposed drill sites concerning air quality and emissions, as well as groundwater and surface water resources and quality.

"(3) Requirements that oil and gas operators prepare and have approved water management plans that limit water withdrawals during times of low-flow conditions and droughts.

"(4) Enhancements to existing oil and gas well construction standards to address the additional pressures of horizontal drilling and hydraulic fracturing.

"(5) Development of setback requirements and identification of areas where oil and gas exploration and development activities should be prohibited.

"(6) Development of a State stormwater regulatory program for oil and gas drilling sites.

"(7) Development of specific standards for management of oil and gas wastes.

"(8) Requirements for disclosure of hydraulic fracturing chemicals and constituents to regulatory agencies and the public.

"(9) Prohibitions on use of certain chemicals or constituents in hydraulic fracturing fluids.

"(10) Improvements to data management capabilities.

"(11) Development of a coordinated permitting program for oil and gas exploration and development activities within the Department of Environment and Natural Resources(now Department of Environmental Quality) where it will benefit from the expertise of State geological staff and the ability to coordinate air, land, and water permitting.

"(12) Development of protocols to ensure that State agencies, local first responders, and industry are prepared to respond to a well blowout, chemical spill, or other emergency.

"(13) Adequate funding for any continued work on the development of a State regulatory program for the natural gas industry.

"(14) Appropriate distribution of revenues from any taxes or fees that may be imposed on oil and gas exploration and development activities to support a modern regulatory program for the management of all aspects of oil and gas exploration and development activities using the processes of horizontal drilling and hydraulic fracturing in the State, and to support local governments impacted by the activities, including, but not limited to, sufficient funding for improvements to and repair of roads subject to damage by truck traffic and heavy equipment from these activities.

"(15) Closure of gaps in regulatory authority over the siting, construction, and operation of gathering pipelines.

"(16) Clarifications needed to address local government regulatory authority over oil and gas exploration and development activities, and use of horizontal drilling and hydraulic fracturing for that purpose.

"(17) Additional research required on impacts to local governments and local infrastructure, as well as potential economic impacts from oil and gas exploration and development activities.

"(18) Development of provisions to address liability of the oil and gas industry for environmental contamination caused by exploration and development activities, particularly with regard to groundwater contamination.

"(19) Establishment of a process that affords additional public participation in connection with development of a modern oil and gas regulatory program; and

"Whereas, the final report also states "[a]fter reviewing other studies and experiences in oil and gas-producing states, DENR has concluded that information available to date suggests that production of natural gas by means of hydraulic fracturing can be done safely as long as the right protections are in place"; and

"Whereas, the General Assembly concurs in the conclusion of the final report that hydraulic fracturing can be done safely as long as the right protective measures are in place before any permits for horizontal drilling and hydraulic fracturing are issued; and

"Whereas, it is the intent of the General Assembly to authorize oil and gas exploration and development activities using horizontal drilling and hydraulic fracturing treatments, but to prohibit the issuance of permits for these activities until such time as the General Assembly has determined that a modern regulatory program for the management of oil and gas exploration and development in the State and the use of horizontal drilling and hydraulic fracturing for that purpose has been fully established and takes legislative action to allow the issuance of permits; and

"Whereas, it is the intent of the General Assembly to establish a modern regulatory program based on the recommendations of the final report and the following principles:

"(1) Protection of public health and safety.

"(2) Protection of public and private property.

"(3) Protection and conservation of the State's air, water, and other natural resources.

"(4) Promotion of economic development and expanded employment opportunities.

"(5) Productive and efficient development of the State's oil and gas resources; Now, therefore,"

Session Laws 2012-143, s. 7, made subsection (b2), as added by Session Laws 2011-362, s. 3(b), applicable to real estate transfers or dispositions occurring on or after October 1, 2012.

Session Laws 2014-120, s. 49(b), made the deletion of subsection (b2) by Session Laws 2014-120, s. 49(a), effective January 1, 2015, and applicable to contracts executed on or after that date.

Session Laws 2014-120, s. 60, is a severability clause.

Effect of Amendments. - Session Laws 2011-362, s. 3(b), effective January 1, 2012, and applicable to real estate transfers or dispositions occurring on or after that date, added subsection (b1) and inserted "or the owners' association and mandatory covenants disclosure statement, if applicable" in the first sentence of subsection (c).

Session Laws 2012-143, s. 5, effective October 1, 2012, added subsection (b2). For applicability, see editor's note.

Session Laws 2014-120, s. 49(a), effective January 1, 2015, deleted subsection (b2), which contained the oil and gas rights mandatory disclosure form. See Editor's note for applicability.

Legal Periodicals. - For 1997 legislative survey, see 20 Campbell L. Rev. 479 (1998).

For article, "Looking Beyond the Title Search: Attorneys Must Consider Environmental Regulations," 25 N.C. Cent. L.J. 182 (2003).

CASE NOTES

Action for Damages Not Permitted for Failure to Provide Disclosure Statement. - Although the seller was required by law to furnish a residential property disclosure statement to buyers at the time of the parties' property sale transaction disclosing property conditions or stating no representations about the conditions were made to the buyers, and did not do so, the trial court properly dismissed the buyers' claim for damages pursuant to the Residential Property Disclosure Act, G.S. 47E-1 et seq., as the buyers' sole remedy under the Act was cancellation of the land sale contract; no separate action for damages was permitted under the Act for not providing the disclosure statement. Little v. Stogner, 162 N.C. App. 25, 592 S.E.2d 5 (2004).

Buyer's Failure to Exercise Reasonable Diligence. - Sellers of real property were entitled to summary judgment on the buyer's claims because there was no genuine issue of material fact that the buyer and the buyer's spouse failed to exercise reasonable diligence prior to consummating the purchase of a residential property from the sellers. The failure of the buyer to conduct any inspection of the property during the due diligence period or prior to closing, after being notified of potential problems, constituted a failure by the buyer to conduct reasonable diligence under the circumstances. Stevens v. Heller, - N.C. App. - , 836 S.E.2d 675 (2019).

§ 47E-4.1. Required mineral and oil and gas rights disclosures.

With regard to transfers described in G.S. 47E-1 and G.S. 47E-2(b), the owner of the real property shall furnish to a purchaser a mineral and oil and gas rights mandatory disclosure statement. The disclosure shall be conspicuous, shall be in boldface type, and shall be as follows:
The North Carolina Real Estate Commission shall develop and require the use of a mineral and oil and gas rights mandatory disclosure statement to comply with the requirements of this section. The disclosure statement shall specify that the transfers identified in G.S. 47E-2(a) are exempt from this requirement but the transfers identified in G.S. 47E-2(b) are not. The disclosure statement shall provide the owner with the option to indicate whether the owner has actual knowledge of the specified characteristics or conditions. The owner may make no representations only as to a previous severance of mineral rights and previous severance of oil and gas rights.
The rights of the parties to a real estate contract as to the severance of minerals or the severance of oil and gas rights by the previous owner of the property and of which the owner had no actual knowledge are not affected by this Article unless the mineral and oil and gas rights mandatory disclosure statement states that the owner makes no representations as to the severance of mineral rights or the severance of oil and gas rights by the previous owner of the property. If the statement states that an owner makes no representations as to the severance of mineral rights or the severance of oil and gas rights by the previous owner of the property, then the owner has no duty to disclose the severance of mineral rights or the severance of oil and gas rights, as applicable, by a previous owner of the property, whether or not the owner should have known of any such severance.

MINERAL AND OIL AND GAS RIGHTS DISCLOSURE

Mineral rights and/or oil and gas rights can be severed from the title to real property by conveyance (deed) of the mineral rights and/or oil and gas rights from the owner or by reservation of the mineral rights and/or oil and gas rights by the owner. If mineral rights and/or oil and gas rights are or will be severed from the property, the owner of those rights may have the perpetual right to drill, mine, explore, and remove any of the subsurface mineral and/or oil or gas resources on or from the property either directly from the surface of the property or from a nearby location. With regard to the severance of mineral rights and/or oil and gas rights, Seller makes the following disclosures:

No Rep- Yes No resentation _____________ Buyer Initials 1. Mineral rights were severed from the property by a previous owner. ____ ____ Yes No _____________ Buyer Initials 2. Seller has severed the mineral rights from the property. ____ ____ Yes No _____________ Buyer Initials 3. Seller intends to sever the mineral rights from the property prior to transfer of title to Buyer. ____ ____ ____ Yes No No Representat ion _____________ Buyer Initials 4. Oil and gas rights were severed from the property by a previous owner. ____ ____ ____ Yes No No Representat ion _____________ Buyer Initials 5. Seller has severed the oil and gas rights from the property. ____ ____ ____ Yes No _____________ Buyer Initials 6. Seller intends to sever the oil and gas rights from the property prior to transfer of title to Buyer. ____ ____

History

(2014-120, s. 49(a).)

Editor's Note. - Session Laws 2014-120, s. 49(b), made this section effective January 1, 2015, and applicable to contracts executed on or after that date.

Session Laws 2014-120, s. 60, is a severability clause.

§ 47E-5. Time for disclosure; cancellation of contract.

The owner of real property subject to this Chapter shall deliver to the purchaser the disclosure statements required by this Chapter no later than the time the purchaser makes an offer to purchase, exchange, or option the property, or exercises the option to purchase the property pursuant to a lease with an option to purchase. The residential property disclosure statement, the mineral and oil and gas rights mandatory disclosure statement, or the owners' association and mandatory covenants disclosure statement may be included in the real estate contract, in an addendum, or in a separate document.
If the disclosure statements required by this Chapter are not delivered to the purchaser prior to or at the time the purchaser makes an offer, the purchaser may cancel any resulting real estate contract. The purchaser's right to cancel shall expire if not exercised prior to the following, whichever occurs first:
1. The end of the third calendar day following the purchaser's receipt of the disclosure statement;
2. The end of the third calendar day following the date the contract was made;
3. Settlement or occupancy by the purchaser in the case of a sale or exchange; or
4. Settlement in the case of a purchase pursuant to a lease with option to purchase.

Any right of the purchaser to cancel the contract provided by this subsection is waived conclusively if not exercised in the manner required by this subsection.

In order to cancel a real estate contract when permitted by this section, the purchaser shall, within the time required above, give written notice to the owner or the owner's agent either by hand delivery or by depositing into the United States mail, postage prepaid, and properly addressed to the owner or the owner's agent. If the purchaser cancels a real estate contract in compliance with this subsection, the cancellation shall be without penalty to the purchaser, and the purchaser shall be entitled to a refund of any deposit the purchaser may have paid. Any rights of the purchaser to cancel or terminate the contract for reasons other than those set forth in this subsection are not affected by this subsection.

History

(1995, c. 476, s. 1; 1997-472, s. 2; 2011-362, s. 3(c); 2014-120, s. 49(a).)

Session Laws 2014-120, s. 49(b), made the amendment to subsection (a) by Session Laws 2014-120, s. 49(a), effective January 1, 2015, and applicable to contracts executed on or after that date.

Session Laws 2014-120, s. 60, is a severability clause.

Effect of Amendments. - Session Laws 2011-362, s. 3(c), effective January 1, 2012, and applicable to real estate transfers or dispositions occurring on or after that date, in subsection (a), substituted "statements" for "statement" in the first sentence and inserted "or the owners' association and mandatory covenants disclosure statement" in the last sentence; and, in the first sentence of the introductory paragraph of subsection (b), substituted "statements required by this Chapter are not delivered" for "statement required by this Chapter is not delivered."

Session Laws 2014-120, s. 49(a), effective January 1, 2015, inserted "the mineral and oil and gas rights mandatory disclosure statement," in the second sentence of subsection (a). See Editor's note for applicability.

CASE NOTES

§ 47E-6. Owner liability for disclosure of information provided by others.

With the exception of the disclosures required by G.S. 47E-4.1, the owner may discharge the duty to disclose imposed by this Chapter by providing a written report attached to the residential property disclosure statement and the owners' association and mandatory covenants disclosure statement by a public agency or by an attorney, engineer, land surveyor, geologist, pest control operator, contractor, home inspector or other expert, dealing with matters within the scope of the public agency's functions or the expert's license or expertise. The owner shall not be liable for any error, inaccuracy, or omission of any information delivered pursuant to this section if the error, inaccuracy, or omission was made in reasonable reliance upon the information provided by the public agency or expert and the owner was not grossly negligent in obtaining the information or transmitting it.

History

(1995, c. 476, s. 1; 1997-472, s. 3; 2011-362, s. 3(d); 2014-120, s. 49(a).)

Session Laws 2014-120, s. 49(b), made the amendments to this section by Session Laws 2014-120, s. 49(a), effective January 1, 2015, and applicable to contracts executed on or after that date.

Session Laws 2014-120, s. 60, is a severability clause.

Effect of Amendments. - Session Laws 2011-362, s. 3(d), effective January 1, 2012, and applicable to real estate transfers or dispositions occurring on or after that date, in the first sentence, inserted "and the owners' association and mandatory covenants disclosure statement" and "attorney."

Session Laws 2014-120, s. 49(a), effective January 1, 2015, inserted "With the exception of the disclosures required by G.S. 47E-4.1," at the beginning and made a minor stylistic change. See Editor's note for applicability.

CASE NOTES

§ 47E-7. Change in circumstances.

If, subsequent to the owner's delivery of a residential property disclosure statement, the mineral and oil and gas rights mandatory disclosure statement, or the owners' association and mandatory covenants disclosure statement to a purchaser, the owner discovers a material inaccuracy in a disclosure statement, or a disclosure statement is rendered inaccurate in a material way by the occurrence of some event or circumstance, the owner shall promptly correct the inaccuracy by delivering a corrected disclosure statement or statements to the purchaser. Failure to deliver a corrected disclosure statement or to make the repairs made necessary by the event or circumstance shall result in such remedies for the buyer as are provided for by law in the event the sale agreement requires the property to be in substantially the same condition at closing as on the date of the offer to purchase, reasonable wear and tear excepted.

History

(1995, c. 476, s. 1; 2011-362, s. 3(e); 2014-120, s. 49(a).)

Session Laws 2014-120, s. 49(b), made the amendments to this section by Session Laws 2014-120, s. 49(a), effective January 1, 2015, and applicable to contracts executed on or after that date.

Session Laws 2014-120, s. 60, is a severability clause.

Effect of Amendments. - Session Laws 2011-362, s. 3(e), effective January 1, 2012, and applicable to real estate transfers or dispositions occurring on or after that date, in the first sentence, inserted "and the owners' association and mandatory covenants disclosure statement," substituted "inaccuracy in a disclosure statement, or a disclosure statement is rendered inaccurate" for "inaccuracy in the disclosure statement, or the disclosure statement is rendered inaccurate" and inserted "or statements," and, in the last sentence, substituted "a corrected disclosure statement" for "the corrected disclosure statement."

Session Laws 2014-120, s. 49(a), effective January 1, 2015, substituted "statement, the mineral and oil and gas rights mandatory disclosure statement," for "statement and" near the beginning. See Editor's note for applicability.

CASE NOTES

§ 47E-8. Agent's duty.

A real estate broker acting as an agent in a residential real estate transaction has the duty to inform each of the clients of the real estate broker of the client's rights and obligations under this Chapter. Provided the owner's real estate broker has performed this duty, the broker or salesman shall not be responsible for the owner's willful refusal to provide a prospective purchaser with a residential property disclosure statement, the mineral and oil and gas rights mandatory disclosure statement, or an owners' association and mandatory covenants disclosure statement. Nothing in this Chapter shall be construed to conflict with, or alter, the broker's duties under Chapter 93A of the General Statutes.

History

(1995, c. 476, s. 1; 1997-472, s. 4; 2011-362, s. 3(f); 2014-120, s. 49(a).)

Session Laws 2014-120, s. 49(b), made the amendments to this section by Session Laws 2014-120, s. 49(a), effective January 1, 2015, and applicable to contracts executed on or after that date.

Session Laws 2014-120, s. 60, is a severability clause.

Effect of Amendments. - Session Laws 2011-362, s. 3(f), effective January 1, 2012, and applicable to real estate transfers or dispositions occurring on or after that date, added "or an owners' association and mandatory covenants disclosure statement" in the second sentence.

Session Laws 2014-120, s. 49(a), effective January 1, 2015, deleted "or salesman" following "broker" throughout and inserted "the mineral and oil and gas rights mandatory statement" and made minor stylistic changes. See Editor's note for applicability.

§ 47E-9. Rights and duties under Chapter 42, landlord and tenant, not affected during lease.

This Chapter shall not affect the landlord-tenant relationship between the parties to a lease with option to purchase contract during the term of the lease, and the rights and duties of landlords and tenants under Chapter 42 of the General Statutes shall remain in effect until transfer of ownership of the property to the purchaser.

History

(1995, c. 476, s. 1.)

§ 47E-10. Authorization to prepare forms; fees.

The North Carolina Real Estate Commission may prepare, or cause to be prepared, forms for use pursuant to this Chapter. The Commission may charge a fee not to exceed twenty-five cents (25 › ) per form plus the costs of postage.

History

(1995, c. 476, s. 1.)