BIC TIP #1197: It Is the Law, Not Just for Agents
Stephen Long, The Notorious BIC, often hears from for sale by owner sellers and others outside the industry who assume the property disclosure forms are just “real estate agent paperwork.” Not so. These disclosures are set by North Carolina general statute, and they apply to residential sales whether or not an agent is involved.
Two Required Disclosures
In North Carolina, residential sellers are required to provide buyers with the Residential Property and Owners Association Disclosure Statement (RPOADS) and the Mineral and Oil and Gas Rights Mandatory Disclosure Statement.
These forms let the buyer know what the seller is representing about the property and its association, and whether mineral, oil, or gas rights have been severed or may be severed from the property.
Not Just an Agent Form
Because the requirement comes from the general statutes, it is not something real estate brokers invented or something that disappears when a seller decides to go it alone. A for sale by owner seller has the same obligation to deliver these disclosures as a seller who hires a listing broker.
When a FSBO seller calls you with questions, this is a great opportunity to be helpful. Point them to the law and to the forms so they can understand their obligations.
Read the Statute and the Instructions
Stephen encourages anyone who wants to understand the requirements better to read the general statute directly. You are more than welcome to cite it when explaining the rule to a consumer.
The forms themselves also include their own directions, which explain how they are to be completed and delivered, including the situations where the forms may not apply. Reading those instructions carefully answers most questions. For anything beyond that, a real estate attorney is the right resource for an unrepresented seller.
The Practical Takeaway
The RPOADS and the Mineral and Oil and Gas Rights disclosure are required by law, not just by brokers. Whether you are advising a client or fielding a call from a FSBO, point people to the statute and the form instructions, and recommend a real estate attorney when the questions go deeper.
This BIC Tip is general real estate education for licensees and consumers, not legal, tax, or financial advice. Rules and forms change, so verify current NCREC rules, MLS rules, and standard forms, and consult a North Carolina attorney or qualified professional about your specific situation. See Disclaimers & Disclosures.
