BIC TIP #1181: RPOADS Can Cost
Ah, that pesky old Residential Property and Owners Association Disclosure Statement, affectionately known as the RPOADS. Your seller fills it out in most residential transactions, with a few exemptions set out in the statutes. Stephen Long’s reminder for listing agents is simple: read it over, and if you see an answer you know is wrong, you need to say something.
The Seller Fills It Out. You Read It.
The RPOADS is the seller’s form. They complete it, they sign it, and they answer based on what they know. But that does not mean the listing agent can just collect it, upload it, and move on.
Stephen asks listing agents to read over the completed form and make sure the seller did not answer anything you know to be inaccurate. You are often the person in the best position to catch a mistake before it reaches a buyer.
Actual Knowledge Matters
Sellers are expected to answer the questions based on what they know or have actual knowledge of. So if you know something, and the seller knows something, and the form says “no” or otherwise answers the question inaccurately, that is a problem.
You do not want your seller in a position where they are lying on their property disclosure. Have the conversation. Let them know the answer appears to be inaccurate and that they should correct it by amending the form.
No Representation Is an Option
Stephen reminds brokers that sellers are always welcome to choose No Representation. He compares it to pleading the fifth: “I may or may not know, but I am not saying.” That is a legitimate choice on the form.
But if the seller chooses “yes” or “no,” that answer needs to be accurate. And keep in mind that a seller’s choice of No Representation does not change your own duty as a broker to disclose material facts you know about. When in doubt, talk to your broker-in-charge.
The Practical Takeaway
Every time a seller completes the RPOADS, review it before it goes out. If you are positive an answer is incorrect, talk with your seller about amending the disclosure to be accurate, or choosing No Representation where appropriate. A five minute review now can save everyone a costly mess later.
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.
