Posted by: Gary Caddell, J.Y. Monk Instructor
September 15, 2015
Did you know that effective January 1, 2015, a new disclosure form is required in most residential real estate sales in North Carolina? This new form is the Mineral, Oil, and Gas Rights Mandatory Disclosure Statement, which is separate from and in addition to the Residential Property and Owners’ Association Statement. Both disclosures are produced by the North Carolina Real Estate Commission and are available on their website at www.ncrec.gov.
This new form is the result of recent amendments by the legislature to the North Carolina Residential Property Disclosure Act (North Carolina General Statutes Chapter 47E). Basically, the disclosure concerning oil and gas rights that had previously appeared in the North Carolina Association of REALTORS®/North Carolina Bar Association standard form Offer to Purchase and Contract (form 2T) has been removed from the contract. A new version of the Offer to Purchase and Contract became available in July 2015, which refers to the Mineral and Oil and Gas Rights Mandatory Disclosure Statement in section 5(e). The oil and gas disclosure will now be made using the new disclosure statement. In addition to oil and gas rights, the seller must also make disclosures on this new statement concerning mineral rights.
This change is effective for all properties on the market after January 1, 2014. Be sure to update your forms and explain the disclosure requirements to your clients.
Gary Caddell is a J.Y. Monk Real Estate School instructor in our Raleigh classroom. He is also the owner of GR Caddell, LLC, where he assists North Carolina real estate brokers with maintaining their trust and escrow accounts in compliance with the North Carolina Real Estate License Law and North Carolina Real Estate Commission rules. Gary also provides bookkeeping services, assists licensees who are the subjects of complaints, and assists the parties in real estate related litigation.