BIC TIP #1131: RPOADS and Estates
One of the most common assumptions on estate listings is that the seller does not need to complete the Residential Property and Owners Association Disclosure Statement because nobody in the estate ever lived in the home. It sounds reasonable. It is also not correct under North Carolina law.
Never Lived There Is Not an Exemption
Personal representatives often believe that because they have no firsthand knowledge of the property, they are off the hook. The statute lists specific exemptions from the disclosure requirement, and simply being an estate that never occupied the home is not one of them.
That means the estate, like every other residential seller, must provide the form unless the transaction falls squarely within one of the exemptions listed in the General Statutes.
What the Seller Actually Has to Do
Completing the form does not require the estate to know everything about the house. The seller can mark No Representation where appropriate and disclose what they do know. What matters is that the buyer receives the completed statement so the transaction is handled correctly from the start.
As the listing broker, your job is to make sure the form gets into the hands of the seller, that they read the instructions, and that they complete it themselves. You do not fill it out for them.
Where the Broker Still Carries Responsibility
Even when the seller chooses No Representation, you are still responsible for discovering and disclosing material facts you know or reasonably should know. The disclosure statement belongs to the seller; your duty to the buyer under license law is separate and does not go away.
The Practical Takeaway
If you take an estate listing, plan on the RPOADS from day one. Explain to the personal representative that the estate is not exempt just because no one lived there, hand them the form early, and keep a copy in your file. A simple step up front prevents a messy conversation with a buyer, or the Commission, later.
