Breaking News: NCREC Proposes Key Changes to Property Disclosure Statement

The North Carolina Real Estate Commission (NCREC) has proposed significant revisions to the Residential Property and Owners’ Association Disclosure Statement (RPOADS), a critical document in nearly every residential real estate transaction in the state.

The proposed changes, which are now open for public comment, aim to enhance transparency and provide more detailed information to buyers about a property's history and systems.

Key Proposed Changes

The most notable changes include new questions about fire damage, more detailed information about HVAC and fuel sources, and a clarification on the owners' association disclosure. The NCREC is accepting public comments on the proposed changes from November 3, 2025, through December 3, 2025.

Here is a summary of the proposed revisions:

Section	Change	Details
A. Structure/Floors/Walls/Ceiling/Window/Roof	New questions on fire damage	Adds questions A9 and A10, which ask sellers to disclose if the dwelling has ever experienced fire damage and if an insurance claim was ever filed for fire damage.
B. HVAC/Electrical	More detail on systems	Adds spaces to enter the year of manufacture for HVAC systems and new fields to provide information about the fuel source provider, whether it is leased or owned, if it is above or below ground, and the year of installation.
H. Owners' Association Disclosure	Clarification of disclosure	Adds "Yes," "No," and "No Representation" fillable circles for question H1(c) regarding changes to dues, fees, or special assessments.

Why the Changes? The Importance of Disclosing Material Facts

The proposed changes, particularly the new questions about fire damage, underscore a critical legal principle in North Carolina real estate: the duty to disclose material facts. A material fact is any information that could influence a reasonable person's decision to buy, sell, or lease a property.

As stated in the instructions for the current RPOADS form, "some issues, even if repaired, such as structural issues and fire damage, remain material facts and must be disclosed by a broker even after repairs are made." This is because even repaired fire damage can have long-term implications for a property's structural integrity, insurance, and overall value.

The NCREC's move to add specific questions about fire damage to the RPOADS aims to ensure that sellers explicitly address this crucial aspect of a property's history, providing buyers with a clearer picture and helping brokers fulfill their disclosure obligations.

What This Means for Real Estate Professionals

These proposed changes highlight the NCREC's ongoing commitment to consumer protection and transparency in real estate transactions. For real estate brokers and students, these changes serve as a powerful reminder of the importance of:

• Thoroughly reviewing the RPOADS with clients: Ensure both buyers and sellers understand their rights and obligations under North Carolina law.

• Understanding the concept of material facts: Recognize that a broker's duty to disclose is separate from the seller's, and that some issues must be disclosed even if they have been repaired.

• Staying current with Commission rules and forms: Regularly check for updates and participate in the public comment process to stay informed and contribute to the evolution of the industry.

How to Submit Comments

Members of the public may submit written comments or suggestions during the designated comment period from November 3 through December 3, 2025. Comments may be submitted by mail or email to the Commission's Rulemaking Coordinator:

Melissa A. Vuotto

Rulemaking Coordinator 

North Carolina Real Estate Commission

P.O. Box 17100

Raleigh, NC 27619

Email: public.comment@ncrec.gov

Next Steps

The NCREC will review all public comments after the comment period closes on December 3, 2025. The Commission will then decide whether to adopt the proposed changes as written, make further revisions, or withdraw the proposal.

What do you think of these proposed changes to the RPOADS? Leave a comment below or share with a colleague in an upcoming CE Class!

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References

North Carolina Real Estate Commission. Residential Property And Owners’ Association Disclosure Statement.

North Carolina Real Estate Commission. Notice of Proposed Changes to the Residential Property and Owners' Association Disclosure Statement Form.