BIC TIP #1178: Mineral, Oil and Gas Disclosure and Vacant Land
Still the BIC in the Basement, Stephen Long clears up a common point of confusion. The Mineral and Oil and Gas Rights Disclosure is a statutory requirement, but the key word is residential. If you are selling vacant land, the rules are different, and there is a newer form you should know about.
Residential Is the Key Word
The Mineral and Oil and Gas Rights Disclosure is required in residential sales. That is where the statutory requirement lives. Brokers who list homes are used to seeing it alongside the RPOADS in their listing packet.
But Stephen points out that the requirement is tied to residential property. It does not automatically follow you onto every type of transaction.
Vacant Land Is a Different Animal
If you are selling vacant land, there is no statutory requirement for the Mineral and Oil and Gas Rights Disclosure. Neither the license law nor the general statutes require it for vacant land.
Stephen adds that it is not a bad idea to use it anyway. Mineral, oil, and gas rights can matter to a land buyer, and more disclosure is rarely a bad thing. It is simply not mandatory.
Meet the Vacant Land Disclosure
Here is the newer piece. If you are using the Offer to Purchase and Contract for Vacant Land, there is now a vacant land disclosure form that goes with it. That form covers some of the same ground as the mineral, oil, and gas disclosure.
So while the residential mineral, oil, and gas form is not required on land, the vacant land disclosure is designed to work hand in hand with the vacant land contract. If you have questions about which forms your firm expects in a land file, check with your broker-in-charge.
The Practical Takeaway
Selling vacant land? Pick up the vacant land Offer to Purchase and include the vacant land disclosure that goes with it. The Mineral and Oil and Gas Rights Disclosure is required for residential sales, not vacant land, but you are welcome to use it if you want the extra layer of disclosure.
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.
