OWNERS: The owner must give a completed and signed Disclosure Statement to the buyer no later than the time the buyer makes
an oer to purchase property. If the owner does not, the buyer can, under certain conditions, cancel any resulting contract. An owner
is responsible for completing and delivering the Disclosure Statement to the buyer even if the owner is represented in the sale of the
property by a licensed real estate broker and the broker must disclose any material facts about the property that the broker knows or
reasonably should know, regardless of the owner’s response.
The owner should keep a copy signed by the buyer for their records. If something happens to make the Disclosure Statement incorrect or
inaccurate (for example, the roof begins to leak), the owner must promptly give the buyer an updated Disclosure Statement or correct the
problem. Note that some issues, even if repaired, such as structural issues and re damage, remain material facts and must be disclosed
by a broker even after repairs are made.
1
Buyer Initials ________________ Owner Initials ________________
Buyer Initials ________________ Owner Initials ________________
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 oer to purchase. There are limited exemptions for completing the form, such as new home construction that has never
been occupied. Owners are advised to seek legal advice if they believe they are entitled to one of the limited exemptions contained in
N.C.G.S. 47E-2.
An owner is required to provide a response to every question by selecting Yes (Y), No (N), No Representation (NR), or Not Applicable
(NA). An owner is not required to disclose any of the material facts that have a NR option, even if they have knowledge of them.
However, failure to disclose latent (hidden) defects may result in civil liability. The disclosures made in this Disclosure Statement are
those of the owner(s), not the owner’s broker.
◦ If an owner selects Y or N, the owner is only obligated to disclose information about which they have actual knowledge. If an
owner selects Y in response to any question about a problem, the owner must provide a written explanation or attach a report from
an attorney, engineer, contractor, pest control operator, or other expert or public agency describing it.
◦ If an owner selects N, the owner has no actual knowledge of the topic of the question, including any problem. If the owner selects N
and the owner knows there is a problem or that the owner’s answer is not correct, the owner may be liable for making an intentional
misstatement.
◦ If an owner selects NR, it could mean that the owner (1) has knowledge of an issue and chooses not to disclose it; or (2) simply
does not know.
◦ If an owner selects NA, it means the property does not contain a particular item or feature.
REC 4.22
REV 5/24
Property Address/Description:
Owner’s Name(s):
BUYERS: The owner’s responses contained in this Disclosure Statement are not a warranty and should not be a substitute for conducting
a careful and independent evaluation of the property. Buyers are strongly encouraged to:
• Carefully review the entire Disclosure Statement.
• Obtain their own inspections from a licensed home inspector and/or other professional.
DO NOT assume that an answer of N or NR is a guarantee of no defect. If an owner selects N, that means the owner has no actual
knowledge of any defects. It does not mean that a defect does not exist. If an owner selects NR, it could mean the owner (1) has
knowledge of an issue and chooses not to disclose it, or (2) simply does not know.
BROKERS: A licensed real estate broker shall furnish their seller-client with a Disclosure Statement for the seller to complete in
connection with the transaction. A broker shall obtain a completed copy of the Disclosure Statement and provide it to their buyer-client to
review and sign. All brokers shall (1) review the completed Disclosure Statement to ensure the seller responded to all questions, (2) take
reasonable steps to disclose material facts about the property that the broker knows or reasonably should know regardless of the owner’s
responses or representations, and (3) explain to the buyer that this Disclosure Statement does not replace an inspection and encourage
the buyer to protect their interests by having the property fully examined to the buyer’s satisfaction.
• Brokers are NOT permitted to complete this Disclosure Statement on behalf of their seller-clients.
• Brokers who own the property may select NR in this Disclosure Statement but are obligated to disclose material facts they know or
reasonably should know about the property.
For purposes of completing this Disclosure Statement: “Dwelling” means any structure intended for human habitation, “Property”
means any structure intended for human habitation and the tract of land, and “Not Applicable” means the item does not apply to the
property or exist on the property.