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In breaking news, the North Carolina Real Estate Commission (NCREC) has proposed significant changes to the Residential Property and Owners’ Association Disclosure Statement (RPOADS) disclosure form.
Under the proposed changes, the disclosure statement could now include a range of new requirements that go above and beyond the current form which primarily provides potential buyers with information about the property as required by General Statue 47-E to now include information about fixtures, systems, and surroundings.
Fixtures and Fridges
The newly proposed form would have a place for home sellers to indicate the status of fixtures that are to convey with the property. This could include many things, but the big ticket item in this section will likely be appliances. The proposed rule change does not give much detail regarding this section, but we imagine that it might include some or all of the following:
Is the refrigerator staying or going?
Any known issues with existing appliances?
Age of appliances?
Existence of any warranties on appliances? Would these warranties transfer to the new owners?
All Systems Go
Next, the new rule proposes that the RPOADS will include information about the property’s systems. The condition of the following systems would require disclosure under the new rule:
Central Vacuum
Pool, Hot tub, Spa
Sump Pump, Irrigation System
Elevator
Any other systems
We can’t help but wonder if this section of the form will require home sellers to disclose whether they “buried parts of the outdoor pool beneath the back yard instead of removing it all from the property.” Yes, we are looking at you Opendoor.
Situs and Surroundings
Lastly, the new form would require substantially more information than the current one provides about the property’s surroundings. New boxes on the form would call for information about the following:
historic designation or registration of the property, if applicable;
noise, odor, smoke, or other issue from commercial, industrial, or military sources that affect the property;
flood hazard status of the property;
condition of the drainage, grading, or soil stability affecting the property;
private road(s) abutting or adjoining the property and the maintenance agreements, if applicable;
Well, it looks like the new disclosure form is leaving no stone unturned - they even want to know if the neighbors have a herd of yodeling goats!
What’s Next?
The proposed changes will now be subject to a public comment period, and it is anticipated that they will come into effect later this year, pending final approval from the North Carolina Real Estate Commission.
What are your thoughts on these proposed changes to the RPOADS? Is there anything else that you think should be included? Sound off in the comments or discuss with us in an upcoming CE class!
References
North Carolina Real Estate Commission. (2023). Proposed rule changes to the North Carolina Residential Property and Owners' Association Disclosure Statement. Retrieved from https://www.ncrec.gov/Pdfs/Rules/PropRPOADSRulemaking.pdf