Understanding Real Estate Disclosure Laws in North Carolina

A Practical Guide for Both Buyers and Sellers

In North Carolina, real estate disclosure laws are designed to protect both sides of a transaction. But the way these laws work is often misunderstood — especially by sellers who fear saying “too much,” and buyers who assume disclosures guarantee condition.

So let’s break it down — clearly, honestly, and with real-world meaning.

North Carolina is a “Caveat Emptor” (Buyer Beware) State

Unlike many states, North Carolina does not require sellers to proactively disclose every known defect in a property.
Instead, buyers are expected to inspect, investigate, and verify the condition of the home before closing.

But — that does not mean sellers can hide problems.

What is required:

Sellers must complete the:

• Residential Property and Owners’ Association Disclosure Statement (RPOADS), and

• Mineral, Oil, and Gas Rights Disclosure (MOG) form.

These forms must be provided before the buyer makes an offer.

The Three Choices on Every Disclosure Item

On the NC Disclosure Form, sellers can answer each item with:

“No Representation” is not hiding something.

It simply means the seller is not guaranteeing or denying the condition.
But the seller must still answer truthfully about anything they do choose to disclose.

What Sellers Cannot Do

Even in a buyer-beware state, dishonesty is illegal.

Sellers cannot:

• Lie about property condition

• Conceal known structural issues

• Cover up past flood/fire/mold damage

• Prevent inspectors from accessing key areas (crawlspace, attic, electrical panel, etc.)

If the seller knows of a material defect and attempts to hide it, that’s fraud, and can result in:

• Contract cancellation

• Damages owed to the buyer

• Legal liability after closing

Common Issues Buyers Should Investigate Thoroughly

Because sellers can legally choose “No Representation,” buyers should be ready to inspect for:

• Foundation settlement or structural concerns

• Active or past water intrusion / moisture issues

• Roof age and condition (not just shingles — decking, flashing, ventilation)

• HVAC age + maintenance history

• Electrical system updates or modifications

• Plumbing type and age (PVC vs. cast iron vs. polybutylene)

• Additions or remodels completed without permits

This is why choosing the right inspector matters.
And why I always encourage walkthrough education, not just reports.

Fire, Water, Smoke, Mold, and Insurance Claims

Sellers are not required to document every past issue — but they are required to answer truthfully if asked directly.

If a seller indicates No Representation, it is wise for a buyer to:

• Review seller-paid CLUE (insurance claim) history when possible

• Ask for repair receipts & contractor info

• Confirm that repairs were completed by licensed professionals

• Evaluate the quality, not just the presence, of repairs

Poorly done repairs can be more expensive than no repairs at all.

HOAs, Shared Driveways & Easements

Sellers must disclose:

• HOA dues, rules, and financial status (via the RPOADS form)

• Any known easements, encroachments, or shared access agreements

Buyers should:

• Review the full HOA covenants (CC&Rs)

• Confirm parking, short-term rental, fencing, or exterior modification rules

• Verify property boundaries before closing

For Sellers: How to Protect Yourself Legally

• Do not guess. If unsure, select “No Representation.”

• Do not attempt repairs you're not qualified to do — improper work creates liability.

• If something is repaired, keep:

  • Receipts

  • Contractor details

  • Scope of work

Transparency + documentation = protection.

For Buyers: How to Protect Your Investment

• Hire an inspector who checks everything, not just the basics

• Consider specialty inspections (crawlspace, foundation, roof, septic, well, radon)

• Don’t waive due diligence inspections unless you fully understand the risk

• Use due diligence period strategically — this is your investigation window

Your due diligence fee is your research time, not a guarantee.

The Bottom Line

Disclosure in North Carolina is about accuracy, not disclosure volume.
Sellers are not required to tell everything — but they must not mislead.
Buyers cannot rely on the disclosure form as a guarantee — they must inspect, verify, and confirm.

Handled correctly, disclosure protects everyone.

And that’s where having the right guidance matters.

Have questions about your specific situation? I can help you navigate this confidently.

📲 Call or text (336) 567-5843

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Jessica J. Baldovinos | @JessicaJBRealtor  --> Book a call