Reading the NC Seller Disclosure Statement: A Buyer's Guide for Clemmons and Winston-Salem

In North Carolina, most home sellers have to give buyers a disclosure form before an offer is made. It's called the Residential Property and Owners' Association Disclosure Statement, and a lot of buyers in Clemmons and Winston-Salem sign it without really reading it.

That's a mistake. This form can tell you a lot about a house, including what the seller chose not to say.

What the form is

North Carolina law (G.S. Chapter 47E) requires most owners selling a house to fill out the disclosure statement and give it to the buyer no later than the time the buyer makes an offer. The NC Real Estate Commission revised the form for listings starting July 1, 2024. It's longer than the old version, with more detailed questions about flooding and related issues.

It covers things like the roof, plumbing, electrical, water and sewer, flooding, additions and permits, and whether the home is in an owners' association with dues or special assessments.

The four answers, and what each one means

Owners have to answer every question, using one of these:

• Yes (Y): The owner knows about the issue. They should explain it, or attach a report from a contractor, engineer, pest control company or other expert.
• No (N): The owner has no actual knowledge of a problem. An owner who answers "No" when they know there's a problem can be held liable.
• No Representation (NR): The owner is choosing not to say. That can mean they don't know, or that they know and are choosing not to disclose.
• Not Applicable (NA): Offered only on some questions. It means the house doesn't have that feature at all.

The big one to understand is No Representation. Owners can choose it for some or all of the questions. It's legal, but it tells you nothing about the house. If you see a form full of NRs, plan your inspections like you know nothing, because on paper, you don't.

Not every sale comes with one

Some sales are exempt from the disclosure statement. A few examples from the law:

• Foreclosures and other court-ordered sales
• Sales by an executor or trustee settling an estate
• The first sale of a brand-new home that's never been lived in
• Sales where buyer and seller both agree not to complete the form

In Clemmons, Lewisville and Winston-Salem, you'll see this with estate sales and with new construction. If there's no disclosure, the inspection matters even more.

What if you didn't get it before your offer?

If the seller didn't give you the required disclosure statements before or when you made your offer, the law lets you cancel the contract. But the window is short. Your right to cancel ends at whichever comes first:

• The end of the third calendar day after you receive the disclosure
• The end of the third calendar day after the contract was made
• Closing or moving in

The cancellation has to be in writing, delivered by hand or by U.S. mail to the owner or the owner's agent. Done correctly, it's without penalty and any deposit is refunded.

A second form: mineral, oil and gas rights

Sellers also give buyers a separate Mineral and Oil and Gas Rights Mandatory Disclosure Statement. It asks whether those rights have been sold or kept by a previous owner. If anything is marked, ask questions before your due diligence period ends.

How to read it like a pro

• Read it before you write the offer. It may change what you offer or what you plan to inspect.
• Circle every "Yes." Each one should come with an explanation. If it doesn't, ask for one.
• Count the "No Representation" answers. A few is normal. A form that's mostly NR means you need to do more checking yourself.
• Match it to the house. If the form says "No" to water problems and you see a stained ceiling, ask about it and tell your inspector.
• Look at the owners' association section. Dues and special assessments matter in any Clemmons or Lewisville neighborhood with an HOA.
• Don't treat it as a warranty. The NC Real Estate Commission is clear that the form isn't a warranty and isn't a substitute for a home inspection. It also only covers the house itself, so a detached garage or shed needs its own look.

One more thing: the disclosures on the form are the owner's, not the listing agent's. Agents have their own separate duty to disclose material facts they know about, whatever the owner checks.

Buying in Clemmons or Winston-Salem?

We go through the disclosure with every buyer we work with, line by line, before an offer goes in. Start your search for homes for sale in Clemmons, see the latest numbers on our Clemmons area page and Winston-Salem area page, or if you have a home to sell first, get a free home value. Next step after the offer: read due diligence fee vs. earnest money.

This post is general information, not legal advice. Your contract and a real estate attorney's advice control.

Questions about a disclosure? Call or text Terri Bias and Associates at 336-361-1230.