The North Carolina residential real estate purchase agreement (“residential purchase agreement”) is used when placing an offer to purchase real estate. The agreement opens with the buyer’s offer to purchase the property. Included in the offer will be the purchase amount and conditions established by the buyer.
The seller will have a period in which they can respond to the offer before it expires. Throughout this time, the seller may alter the terms by submitting a counteroffer to the buyer. Should both parties come to an agreement on the purchase conditions, they can sign the document to create a legally binding commitment to transfer ownership of the property.
Required Seller Disclosures in North Carolina
Residential real estate purchase agreements commonly contain promises and provisions guaranteeing a property’s condition. Many states legally require sellers to disclose explicit information concerning a property’s condition. In states where this is required and a seller willfully hides such information, they can be sued for fraud.
In North Carolina, sellers are required to complete a real estate purchase agreement and the following statement in order for the agreement to be considered legally binding:
Residential Property And Owners’ Association Disclosure Statement. North Carolina law requires sellers of residential real estate to furnish buyers with a Residential Property and Owners’ Association Disclosure Statement (“Disclosure Statement”). This specific form is needed and must be furnished in connection with the purchase agreement. Sellers must respond to each of the questions and explain their answers and either describe any problem or attach a report from an expert or public agency describing it. Sellers must give the completed Disclosure Statement to the buyer no later than the time the buyer makes an offer to purchase your property. (§ 47E-4)