Dec292025
Real Estate Q&A Series

Is it appropriate to select “no representation” on the property disclosure if I’m unsure about the home’s condition, and what are the risks if problems are found later? – North Carolina

Short Answer

In North Carolina, the residential property disclosure law generally allows an owner to choose “no representation” instead of answering each condition question, which can reduce duties about problems the owner does not actually know about. However, “no representation” does not protect an owner who hides or lies about known defects, and it can create practical risks such as buyer distrust, tougher negotiations, and a higher chance the buyer will walk away during inspections. If a material issue is discovered before closing that makes a prior disclosure inaccurate, North Carolina law requires a prompt correction.

Understanding the Problem

In North Carolina real estate sales, an owner often must decide how to complete the required residential property disclosure when the owner is uncertain about the home’s condition. The decision is whether to answer condition questions based on actual knowledge or to select “no representation” as to the property’s characteristics and condition. The practical concern is what happens if defects are later discovered after the disclosure is delivered, including whether “no representation” reduces legal exposure or instead increases dispute risk.

Apply the Law

North Carolina’s Residential Property Disclosure Act (Chapter 47E) sets the baseline disclosure rules for many residential transfers. For covered transfers, the owner generally must provide a disclosure statement that either (1) discloses items the owner has actual knowledge of, or (2) states that the owner makes “no representations” about the property’s characteristics and condition (except as the contract provides). When “no representation” is used, the Act generally removes a duty to disclose conditions the owner did not actually know about, even if the owner arguably “should have known.” Separate timing rules require delivery of the disclosure statement by the time the purchaser makes an offer, and the Act also requires prompt correction if a material inaccuracy is later discovered.

Key Requirements

  • Choose one permitted disclosure approach: For covered sales, the owner must either disclose known conditions based on actual knowledge or select “no representation” on the form.
  • Deliver on time: The disclosure statement must be delivered no later than the time the buyer makes an offer (unless an exemption applies).
  • Correct material inaccuracies: If a material inaccuracy is discovered after delivery (or an event makes the disclosure materially inaccurate), the owner must promptly provide a corrected disclosure.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The facts describe a trustee preparing to sell a trust-owned home after a parent’s death, and uncertainty about the home’s condition. In North Carolina, many fiduciary transfers made in the course of administering a trust or estate are exempt from Chapter 47E, but parties sometimes still use the standard form in practice and buyers often request it. If the sale is treated as a covered transfer (or the trustee elects to provide the form anyway), “no representation” can be an appropriate selection when the trustee lacks actual knowledge. The main legal risk usually comes from failing to disclose a defect that is actually known or from allowing a previously delivered statement to remain materially inaccurate without correction.

Process & Timing

  1. Who completes it: The seller (here, typically the trustee signing for the trust). Where: Provided to the buyer through the listing agent or selling agent in the transaction. What: The standard Residential Property and Owners’ Association Disclosure Statement used in North Carolina transactions. When: Deliver no later than the time the buyer makes an offer if the transaction is subject to Chapter 47E.
  2. If delivered late: The buyer may have a limited right to cancel the contract under the statute, so late delivery can directly jeopardize the deal.
  3. If new information arises: If the trustee later discovers a material inaccuracy (for example, new proof of a prior unresolved structural issue), the trustee should deliver a corrected disclosure promptly to reduce dispute risk and comply with the change-in-circumstances rule.

Exceptions & Pitfalls

  • Exempt fiduciary transfers: A transfer by a fiduciary in the course of administering a trust or estate can be exempt from Chapter 47E, but contracts and buyer expectations still often require disclosures; a careful review of the specific transaction structure matters.
  • “No representation” is not a license to conceal: Even when Chapter 47E reduces duties about unknown conditions, separate legal theories (such as fraud-based claims) can still apply if known problems are actively hidden or false statements are made.
  • Inaccurate or outdated disclosures: Once a disclosure is provided, failing to correct it after learning of a material inaccuracy can create avoidable risk under the change-in-circumstances statute.
  • Buyer reaction and renegotiation pressure: “No representation” often leads buyers to rely heavily on inspections and due diligence, and it can increase requests for repairs, credits, or termination during the due diligence period.

Conclusion

North Carolina law generally allows an owner to select “no representation” on the residential property disclosure instead of answering condition questions, which can be appropriate when the owner truly lacks actual knowledge about the home’s condition. The key risk is not the later discovery of unknown defects, but problems caused by knowingly hiding defects or failing to correct a disclosure after learning it is materially inaccurate. If Chapter 47E applies, the next step is to deliver the disclosure statement to the buyer no later than the time the buyer makes an offer.

Talk to a Real Estate Attorney

If a trustee is preparing to sell a trust-owned home and questions exist about using “no representation” and managing later-discovered problems, an attorney can help clarify what the disclosure rules require and how to reduce avoidable risk in the contract and closing process. Call us today at (919) 341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.

Category: Real Estate Q&A Series

Author: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.