North Carolina Commercial Real Estate Disclosure Laws

For more information on commercial real estate services or to arrange a consultation, please contact Oliver & Cheek, PLLC at (252) 633-1930. All fees, agreements, and other homeowner association information must be clearly stated to a North Carolina buyer. This includes annual dues, restrictions, homeowners association contacts, amenities included, and the homeowners` corporation`s current financial situation. North Carolina also requires sellers to be in advance in the disclosure agreement about neighborhood nuisances, including sounds, odors, smoke, and nearby commercial or industrial establishments that could harm the buyer. Whether you`re buying or selling a commercial property, a real estate attorney should be there to make sure your interests are protected and the process runs smoothly at your closing. They will review all documentation related to the purchase or sale of real estate prior to your closing to correct any errors, omissions or technical deficiencies. The agency relationship between buyer and agent entails fiduciary duties of the representative, which require the agent to “fully and honestly disclose to the client all facts of which he has knowledge or which can be found with due diligence and which may affect the client.” The main difference between this obligation and the obligation owed by the seller`s representative to the buyer is the obligation to disclose not only the material facts known, but also the facts that the agent should reasonably have discovered. Registration agreements make it clear that real estate agents don`t offer legal advice – they usually don`t care about the “what if” of legal details and tend to go out of their way to get a deal through. This is not the case with a lawyer who is better able to provide essential legal advice, and in a more impartial manner than can be the case with a real estate agent. In a disagreement shared by Newby J.A., Justice Berger argued that the majority`s decision was an extension of the duties of the seller`s representative, as he considered it legally reasonable for the sellers` agents to believe that the leaks had been repaired. Berger J. argued that the Real Estate Board does not require disclosure of the issues that have been resolved and that the qualifications of the craftsman should not have created a question of fact regarding the reasonableness of the brokers` beliefs, particularly with respect to the inspection of buyers. He argued that the majority view “extends the duty owed by a seller`s agent to a buyer to the functional equivalent of a fiduciary duty” and suggests that “a seller`s real estate agent is now a guarantor of the condition of the property in question.” In short, it`s always a good idea for a commercial real estate attorney to represent your interests in a purchase transaction.

Business transactions are complex and buyers (and sellers) may be exposed to greater risk than most residential transactions. It is advisable to protect your interests. In the state of North Carolina, the buyer must receive a form called a “residential property disclosure statement” before a contract can be signed. Although required by law, disclosure of these items could be beneficial to the seller. It is possible for a buyer to include some of these items in the contract price and, in some cases, offer sellers to offer fewer default credits. The dangers associated with environmental and natural disasters must be disclosed in the State of North Carolina. If your home is in a fire zone, seismic zone, or flood zone, the state requires that this be included in the disclosure agreement. This could pose major problems in the future for buyers and will also ensure that buyers get the right home insurance to protect them from potential problems. There are several disclosure requirements that sellers must share with buyers in the state of North Carolina.

But what`s legal to share, and what might be too honest to hurt your sale in the long run? We share what you need and what you shouldn`t disclose. Unlike other states, North Carolina involves real estate closures and obtaining title valuations in legal practice. Lawyers must therefore conduct title research, purchase title insurance for buyers, prepare deeds for sellers, and manage the closing transaction. North Carolina law requires sellers to provide a home disclosure that describes the condition of all systems in the home. This may include the water and sanitation system, foundation and structural components, plumbing and mechanical systems, zoning laws, restrictive agreements, and the presence of sources of infestation or contamination. Once the inspections are completed and an acceptable review is received, the seller`s lawyer prepares the signed deed and forwards it to the closing lawyer. The conclusion takes place in the office of the buyer`s lawyer. While fire and flood risk are requirements that must be shared in advance, flooding or fire damage that has been fully repaired or repaired through renovation is not a requirement for a North Carolina disclosure agreement.

If you need legal assistance for a real estate transaction, don`t hesitate to seek help from an experienced real estate attorney in North Carolina. Anthony Privette is committed to providing quality legal representation to buyers and sellers in all regions of North Carolina. He has extensive experience in the preparation of deeds, disclosures, valuations of securities and financing documents. Mr. Privette has also closed residential and commercial properties across the state. Call (704) 872-8125 for a confidential consultation. Any defects, whether visible or not, must also appear in a North Carolina disclosure agreement. These deficiencies include, but are not limited to, foundations, plumbing system, electrical wiring, sewage and disposal system, air conditioning, irrigation system, garage and storage facilities, swimming pools, ceilings and walls, kitchen appliances, electrical features such as ceiling lights and fans, wiring and fireplaces. Major problems, such as damage caused by insects, animals or water damage, are also legal requirements.

Real estate attorneys can assist buyers and sellers with the following transactions: Anthony Privette is a respected North Carolina real estate attorney who assists clients through the rigorous process of buying, selling or developing real estate. He has successfully managed residential and commercial real estate transactions throughout North Carolina. Written agency agreement (Rule A.0104(a)). The need for a written commercial agency contract is often overlooked in commercial mediation. Minimum requirements: The case, Cummings v. Carroll, 379 N.C. 347, 866 S.E.2d 675 (2021), concerned the sale of a beach house. The buyers and sellers in the transaction were represented by separate real estate agents. Before the house was put up for sale, sellers had problems with water penetration.

They hired a handyman who told them he hoped he had solved the problem successfully. This information was shared with the sellers` agents. The sellers completed the required declaration and did not disclose previous water penetration. The sellers` representatives did not provide any further information on this matter, citing the artisan`s statement. Although they knew that the house had previously been used as a rental property, the buyer`s agents did not attempt to obtain the rental agency`s records, which would have revealed the presence of previous water intrusion problems. However, the buyer`s agents advised buyers to have their homes inspected. The inspection, conducted by a certified building inspector and a general contractor, revealed no water intrusion problems. Retention of documents [Rule A.0108]. The Commission tends to observe inconsistencies in record keeping among commercial brokers more frequently. Rule A.0108 lists many of the records that must be retained, but it is not exclusive. Real estate agents should keep all records relating to failed and successful real estate transactions, including offers, contracts, briefing materials, agency and commission agreements, and correspondence such as emails or texts. Remember this: buying a property is usually one of the biggest investments a person can make, so you need a real estate attorney you can trust, whether you`re selling, buying, or refinancing a commercial property.