North Carolina is a little unique in it's property disclsoure statements. As a Realtor we are NOT allowed to help the seller fill out the form or fill it out for them. It is up to the seller to fill out the form. Unfortuantely, there is three options. Yes, I know there is an issue with this and it is_________. No, I have no knowledge of any issue with this since I have lived here. Third, no representation.
Whenever you are selling a home you want to be honest and up front about any issues the house may have. There are a variety of reasons why. Here are some of the most common reasons on why you should disclose.
First, the buyer in North Carolina has the right prior to making an offer to view the property disclosure statement. If you have a "serious" buyer who is considering putting an offer in on your home; you will want to tell them the truth and disclose. Yes, you can check no representation. But I can tell you as a Real Estate agent that brings up a red flag for me. If you have lived in the home then you should know if the roof leaks, the plumbing has an issue, there is a problem with the elcitricty. So, why not tell it up front? By checking the no representation you are basically saying you are not saying yes or no to an issue in the house. I inform my buyers that there probably was or is an issue and they are trying to hide it. Then the issue will come out at the home inspection because the inspector will be looking for it...that could end the deal right there or cost you substantially more after you have negotiated a price on the home with good faith.
Second, a property disclosure statement is not all inclusive. There are going to be times whene an issue will arise after you have done the property disclosure. There may be issues you are unaware of until the home inspection due to the small nature of the issue. However; over time they could be expensive repairs. Buyers tend to be more agreeable and fair if you have a property disclosure that states yes I know and I have done X or no I was nto aware than saying no representation.
Third, always tell the truth....if you check NO, you must be sure you did not know there was or is a problem. That woud be considered fraud. Thus a lot of sellers are checking no representation out of fear of being sued at a later date. But in reality all you are telling the buyer is I am hiding something.
Now, there are exceptions to this rule. Banks that acquire a home through foreclosure are exempt. There is no way for them to have the knowledge that the property has X wrong with it because they have never lived there. The same goes true for a perosn who has purchased a home, fixed it up and is reselling it. They may not have lived there and are truly unaware of any issues with the house. Last, would be an estate sale. The kids or executor of the estate probably has never lived in the house and would not be aware of any issues with the home.
But, if you are looking to sell a home that has been yoru primary residence...DISCLOSE. It could make the difference between you getting an offer and sellign your home and not getting an offer on your home. Buyer X is looking at two homes in the same complex. One claimed no representation and the other disclosed some minor issues with the home. Which one would you put an offer in on?
Dave diCecco
Realtor/Broker
www.davedicecco.com
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