BIC Tip #1067: Disclose It — Even If It’s Been Repaired
When it comes to disclosure in North Carolina real estate, one rule stands above the rest:
If it mattered once, it probably still matters now.
Many brokers assume that once an issue has been repaired — a roof leak, foundation crack, or flood damage — it’s no longer “material.” Not true.
🔍 What the Law Says
Under North Carolina law, a material fact is anything that could affect a reasonable buyer’s decision to purchase — or the price and terms they’d be willing to offer.
That includes past problems, even if fully repaired, when those problems reveal something important about the property’s history, structure, or condition.
So yes — that means:
- Prior flooding or water intrusion
- Foundation repairs
- Structural reinforcements
- Mold remediation
- Insurance claims or CLUE report activity
Each of these may still need to be disclosed because they tell a story about the property’s past that could impact a buyer’s trust or future costs.
📋 Best Practices for Brokers
1️⃣ When in doubt, disclose it out. If you’re hesitating, it’s probably material.
2️⃣ Document everything. Keep records of repairs, invoices, and inspection reports.
3️⃣ Educate your clients. Explain that transparency builds confidence and avoids lawsuits.
4️⃣ Encourage written disclosures. Verbal “oh that’s fixed” statements don’t protect anyone.
⚖️ Why It Matters
Failing to disclose can trigger NCREC complaints, civil lawsuits, and — worst of all — damage your reputation.
It’s always better to over-disclose than to explain later why you didn’t.
Bottom Line:
A repair doesn’t erase a property’s history. If it could influence a buyer’s decision, it’s a material fact — and it belongs on the table.
When in doubt, disclose it out.
#NotoriousBIC #BICTip #RealEstateCompliance #NCREC #DisclosureMatters #NCRealEstate
