Real Estate Q&A Series

What disclosure obligations apply when selling a late parent’s property through an agent? – North Carolina

Short Answer

In North Carolina, sellers of most residential homes must give buyers a standardized disclosure before the buyer makes an offer; estates may qualify for limited exemptions. Regardless of any form or “as-is” language, the seller and the real estate agent must disclose known material facts, including defects learned after a buyer’s inspection. If an estate’s personal representative is the seller, they still must act prudently and honestly, and ensure any newly discovered defects are shared with current and future buyers promptly.

Understanding the Problem

You’re selling your late parent’s North Carolina house through a realtor and, after a buyer’s inspection, you learned there’s a hole cut in the subfloor; you verified it yourself. You want to know what you must disclose, who has to sign any forms, and what to do now that a defect is confirmed.

Apply the Law

North Carolina’s rules focus on two things: who the legal “seller” is (the personal representative of the estate versus the heirs) and whether the property sale triggers the state’s residential disclosure requirements. The main forum for estate-sale authority is the Clerk of Superior Court if court approval is needed. For disclosures, the key timing is before a buyer makes a written offer, and you must update buyers when you learn new material facts.

Key Requirements

  • Identify the legal seller: Determine whether the estate’s personal representative is selling (under a will power or court order) or the heirs are selling with the personal representative joining if required. This affects who signs and what exemptions apply.
  • Provide required disclosures (or qualify for an exemption): Most sales of one-to-four unit homes require a Residential Property and Owners’ Association Disclosure. Some estate transfers are exempt from the form, but known material facts must still be disclosed.
  • Disclose known material facts promptly: Once you learn about a defect (like a subfloor hole), you and your agent must inform the current buyer and any new prospective buyers. “As-is” or “No Representation” does not allow concealment of known issues.
  • Use proper estate-sale authority: If the personal representative lacks power to sell under the will, court approval through the Clerk of Superior Court may be required before listing or closing.
  • Deliver disclosures before offers: The disclosure should be delivered before a buyer makes a written offer; late delivery can give buyers a statutory right to cancel within a short window.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Because you learned of a subfloor hole after an inspection and personally confirmed it, that condition is a known material fact. You and your agent must disclose it to the current buyer and any new prospects. If the estate’s personal representative is the seller, they must act prudently and transparently when handling the sale. If heirs are selling within two years of death, the personal representative typically must join the deed, and the usual residential disclosure form applies to the owners unless a statutory exemption applies.

Process & Timing

  1. Who files: No court filing is needed solely to disclose defects. Where: Through your listing broker and to the buyer’s agent. What: Deliver the Residential Property and Owners’ Association Disclosure Statement (if required) and a Mineral and Oil and Gas Rights disclosure; if exempt from the form, provide a written notice of the known defect. When: Provide disclosures before the buyer makes a written offer; if a new defect is learned mid-transaction, send an immediate written update.
  2. If the personal representative lacks clear authority to sell, file a petition in the Clerk of Superior Court for sale authority before contracting; timing varies by county and whether a private sale is authorized.
  3. At closing, use an appropriate deed for an estate sale (often a personal representative’s deed without general warranties) and retain records of the disclosures provided to buyers.

Exceptions & Pitfalls

  • Estate-form exemption: Some estate sales are exempt from the standardized disclosure form, but you must still disclose known material facts; “No Representation” and “as-is” do not permit concealment.
  • Heirs selling within two years: If heirs (not the estate) are selling within two years of death, the personal representative may need to join the deed; failure to involve the personal representative can create title and creditor problems.
  • Amending disclosures: Once you learn of a significant defect, promptly amend prior disclosures and direct your agent to update the MLS and notify all parties in writing.
  • Agent conduct: Keep communication in writing. If a realtor acts improperly, you may change agents per your listing agreement and can report issues to the North Carolina Real Estate Commission.

Conclusion

When selling a late parent’s North Carolina home through an agent, first confirm who the legal seller is (personal representative versus heirs). Provide the required residential disclosures before any offer—or confirm a valid estate exemption—and always disclose known material facts, including newly discovered defects like a subfloor hole. If authority to sell is unclear, obtain an order through the Clerk of Superior Court before contracting. The immediate next step is to give written notice of the defect to the buyer and update any disclosures.

Talk to a Real Estate Attorney

If you’re dealing with disclosures while selling a late parent’s home, our firm has experienced attorneys who can help you understand your options and timelines. 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.