Jan292026
Real Estate Q&A Series

Can we sell the property if it has major safety issues and damage, and what disclosures do we need to make to buyers? – North Carolina

Short Answer

Yes. In North Carolina, a residential property can be sold “as-is” even if it has major safety issues or damage, but the seller still must provide the required state disclosure forms and must not make false or misleading statements. For most residential sales, the seller must deliver a North Carolina Residential Property Disclosure Statement that addresses items like the roof, floors, structural components, and pest/wood-destroying organism issues based on the seller’s actual knowledge. If something materially changes or a prior disclosure becomes materially inaccurate, the seller must promptly deliver a corrected disclosure.

Understanding the Problem

In a North Carolina residential sale, the key decision point is whether the property can be marketed and transferred even though it has serious condition problems (for example, unsafe steps, unsafe flooring, roof holes, pest issues, and cleanup needs) and what must be disclosed to a prospective buyer before a contract is formed. The issue focuses on the seller’s disclosure duties and timing when known safety-related defects and damage make the home difficult to show and sell.

Apply the Law

North Carolina requires most sellers of residential real property to provide state-mandated disclosure statements to buyers. The core concept is “actual knowledge”: the disclosure form is designed to capture what the owner actually knows about the property’s condition (or, in many cases, to allow the owner to state that no representations are being made). Even when a property is sold “as-is,” the seller still needs to deliver the required disclosure statement(s) on time and avoid inaccurate or misleading statements about known defects. If the seller later learns that a disclosure was materially wrong or becomes materially wrong due to an event, the seller must promptly correct it by delivering an updated disclosure statement.

Key Requirements

  • Deliver the required disclosure statement(s) on time: For covered transfers, the seller must furnish the state disclosure statement no later than when the buyer makes an offer (often as part of the offer package or an addendum).
  • Disclose based on actual knowledge (or clearly elect “no representations” where allowed): The form addresses major systems and conditions (including roof, floors, structural components, and pest/wood-destroying organism issues). The seller should answer consistently with what is actually known and avoid guessing.
  • Correct material inaccuracies: If a disclosure later becomes materially inaccurate (for example, new damage occurs or new information is discovered), the seller must promptly provide a corrected disclosure statement.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The reported issues (damaged exterior access steps, unsafe flooring, roof holes, pest issues, and cleanup needs) fall within the kinds of conditions the North Carolina disclosure form is designed to address, especially roof and floors/structural components and present infestation of wood-destroying insects or organisms. If the owner has actual knowledge of these conditions, the disclosure should reflect that knowledge (or the owner should clearly select the “no representations” option where permitted by the form and the transaction). If new theft/damage occurs after a disclosure is delivered, or if an inspection/report reveals a material issue that makes a prior answer materially inaccurate, North Carolina law requires a prompt corrected disclosure.

Process & Timing

  1. Who files: The seller/owner. Where: Delivered to the buyer (typically through the real estate agents or closing attorney handling the transaction in North Carolina). What: The state-required Residential Property Disclosure Statement (and, if applicable, the owners’ association and mandatory covenants disclosure statement). When: No later than the time the buyer makes an offer; if delivered late, the buyer may have up to three calendar days to cancel after receipt (subject to the statute’s timing rules).
  2. During due diligence/inspections: Expect buyer questions and inspections to focus on safety hazards (steps, flooring), active leaks/roof openings, and pest/wood-destroying organism activity. If the seller provides third-party reports, they should be attached and delivered in writing with the disclosure materials.
  3. Before closing: If the property condition materially changes (for example, additional damage or a new roof opening), deliver a corrected disclosure promptly and address any contract requirement that the property be in substantially the same condition at closing as when the offer was made (reasonable wear and tear excepted).

Exceptions & Pitfalls

  • “As-is” does not mean “say nothing”: An “as-is” sale can still require the state disclosure forms, and it does not protect a seller who makes inaccurate statements or hides known problems.
  • Actual knowledge vs. guessing: The disclosure is keyed to what the owner actually knows. A common mistake is overstating certainty (for example, saying “no” to roof problems when roof holes are known) or understating the scope of known damage.
  • Failure to update after new damage: When theft, weather, or an occupant-related event causes new material damage after the disclosure is delivered, failing to promptly correct the disclosure can create avoidable disputes and closing delays.
  • Pest/wood-destroying organism issues: If there is present infestation or past infestation with unrepaired damage, the disclosure should be handled carefully and consistently with any available written reports.

For more context on transaction timing and avoiding delays, see documents and steps to complete a fast sale without delays and the typical process and timeline for a North Carolina house closing.

Conclusion

In North Carolina, a residential property can be sold even with major safety issues and damage, including “as-is,” but the seller must still deliver the required disclosure statement(s) on time and answer based on actual knowledge (or properly elect “no representations” where allowed). Known issues involving the roof, floors/structural components, and pest/wood-destroying organism activity should be addressed consistently. The most important next step is to complete and deliver the Residential Property Disclosure Statement no later than when the buyer makes an offer, and promptly correct it if a material change occurs.

Talk to a Real Estate Attorney

If a sale involves serious property condition problems and disclosure concerns, our firm has experienced attorneys who can help explain options, paperwork, and timelines under North Carolina law. 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: Pierce Law

Pierce Law Group is a North Carolina law firm focused on probate administration, real estate partition matters, and surplus funds claims across North Carolina. We know these situations often come with stress, family dynamics, and time-sensitive decisions—so we prioritize clear communication, steady guidance, and a practical plan from day one. Our goal is to make a complicated process feel manageable, while protecting what matters most to you.