Seller disclosure in North Carolina: the required forms

Is a disclosure form required by law?

Yes, for most sales. The Real Estate Commission’s current form says that “North Carolina law N.C.G.S. 47E requires residential property owners to complete this Disclosure Statement and provide it to the buyer prior to any offer to purchase.” Two forms are involved:

• Residential Property and Owners’ Association Disclosure Statement (REC 4.22). The main form, six pages in the 7/26 revision.
• Mineral and Oil and Gas Rights Mandatory Disclosure Statement (REC 4.25). A separate one-page form. The Commission describes it as the only form approved for that purpose, and the Disclosure Act requires it for single-family homes, individual condominiums, townhouses and buildings with up to four dwelling units.

The owner must deliver the forms even when a licensed broker represents the seller. The disclosures are “those of the owner(s), not the owner’s broker.”

What does the main form cover?

The owner answers each question with one of four choices. The form explains them this way:

The questions are grouped in eight sections:

1. A. Structure, floors, walls, ceiling, windows, roof, including roof age, leaks, insects, fire damage and past fire claims.
2. B. HVAC and electrical.
3. C. Plumbing, water supply, sewer and septic, including private well testing and, for septic, the number of bedrooms the permit allows.
4. D. Fixtures and appliances.
5. E. Land and zoning, including drainage, code and zoning violations, easements and private roads.
6. F. Environmental and flooding.
7. G. Miscellaneous, such as lawsuits, liens and leases.
8. H. Owners’ association, with dues, transfer fees and pending judgments.

Section F deserves a close read. It asks whether the property is in a federal or other designated flood hazard zone, whether it has had flood or water damage, whether the owner has filed a flood claim or received federal disaster aid, whether a flood policy is in force, and whether a flood or FEMA elevation certificate exists. A note on the form says an existing flood policy “may be assignable to a buyer at a lesser premium than a new policy,” and that for properties that received disaster assistance, “the requirement to obtain flood insurance passes down to all future owners.” For more, see natural hazards and insurance in North Carolina.

What is the mineral rights form?

Mineral and oil and gas rights can be separated from the land by deed or by reservation. The form asks six yes/no/no-representation questions: whether a previous owner or the seller severed the mineral rights or oil and gas rights, and whether the seller intends to sever them before transfer. According to the form, the owner of severed rights “may have the perpetual right to drill, mine, explore, and remove” subsurface resources.

Who is exempt?

The Commission’s form says there are “limited exemptions,” such as new home construction that has never been occupied, and tells owners to seek legal advice if they think one applies. It points to G.S. 47E-2. The mineral rights form lists transfers where it is required even though the main form may not be: the first sale of a dwelling never inhabited, lease-with-option-to-buy contracts where the tenant occupies or plans to occupy the home, and transfers where both parties agree not to use the main form (G.S. 47E-2(b), as summarized on REC 4.25). Read G.S. 47E-2 itself, or ask an attorney, before relying on any exemption.

What happens if a seller does not disclose?

• Buyer may cancel. The main form says that if the owner does not give the statement by the time of the offer, the buyer “can, under certain conditions, cancel any resulting contract.” For the mineral form, the buyer must give written notice within three calendar days of receiving the statement, or three calendar days after the contract date, whichever comes first. The form adds that the Act does not allow cancelling after settlement or after the buyer occupies the property.
• Liability for hidden defects. The form warns that “failure to disclose latent (hidden) defects may result in civil liability.”
• Updates. If something makes the statement inaccurate, such as a new roof leak, the owner must “promptly give the buyer an updated Disclosure Statement or correct the problem.”

What must brokers do?

A broker must give the seller the form, review the completed copy to make sure every question is answered, and explain that the statement does not replace an inspection. Brokers may not fill it out for the seller. They must also disclose material facts they know or reasonably should know, whatever the owner answered. The Commission lists structural issues and fire damage as facts that remain material even after repair. Brokers owe their clients a duty to share material information about the property (Real Estate Commission consumer guide).

What about lead-based paint?

For homes built before 1978, federal law adds its own disclosure. Before a buyer signs a contract, sellers and agents must give the buyer the EPA pamphlet Protect Your Family From Lead In Your Home, disclose known lead-based paint and hazards, hand over available reports, and include a Lead Warning Statement. Buyers get a 10-day period to test, which the parties can lengthen, shorten or waive in writing. Sellers keep a signed copy for three years. The rule does not cover housing built after 1977, zero-bedroom units, certain short leases, or foreclosure sales (EPA, page updated May 2026).

Related: closing costs in North Carolina, the home inspection cost guide, and the Charlotte market.