Real Estate Q&A Series

What can I do if my listing realtor withholds or late discloses critical inspection documents? – North Carolina

Short Answer

In North Carolina, your listing broker must promptly communicate material facts and deliver key documents to you and, when needed, to the other side to avoid misleading anyone. If your broker delays or withholds inspection information, document the issue, correct any seller disclosures in writing before closing, and consider filing a complaint with the North Carolina Real Estate Commission. You may also have civil remedies if you suffered a loss.

Understanding the Problem

In North Carolina, can a home seller require their listing broker to promptly share critical inspection information, and what can the seller do if the broker delays or withholds it during the due diligence period? Here, the key fact is that your listing broker delayed sending inspection reports and shared information unevenly between you and the buyer.

Apply the Law

North Carolina law requires sellers to provide accurate property disclosures and to correct known inaccuracies before settlement. Brokers owe duties to communicate material facts, avoid misrepresentation or omission, and promptly present and deliver offers and related documents. The main forum for broker-misconduct complaints is the North Carolina Real Estate Commission. Key timing triggers include the buyer’s due diligence deadline and delivery of any late or corrected disclosures before settlement, which can affect the buyer’s cancellation rights.

Key Requirements

  • Material facts must be disclosed: Your broker must share known material facts about the property so no party is misled.
  • Prompt delivery of documents: Brokers should promptly communicate and deliver inspection-related information that affects negotiations or disclosure accuracy.
  • Accurate seller disclosures: Sellers must provide the Residential Property and Owners’ Association Disclosure Statement and update it if they learn it is inaccurate before closing.
  • Commission oversight: You may report broker delays, omissions, or misrepresentations to the North Carolina Real Estate Commission.
  • Due diligence timing matters: Late or corrected disclosures near the end of due diligence can affect cancellation and negotiation leverage.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Your broker delayed inspection reports and shared information unevenly. That implicates the duty to promptly deliver documents and disclose material facts. Because your own inspection disproved a claimed hole under the flooring, your broker should relay that correct information so neither side is misled. You agreed to credits for a microwave and tub repairs; those credits should be documented in a signed addendum and reflected on the settlement statement before funds are disbursed.

Process & Timing

  1. Who files: Seller. Where: To the buyer’s side via your broker (and directly if needed), and to the North Carolina Real Estate Commission for complaints. What: Provide a corrected Residential Property and Owners’ Association Disclosure Statement and share your inspection report or a written summary of the findings; for complaints, use the Commission’s online complaint process. When: Do this before settlement; aim to deliver corrections within the due diligence period if possible.
  2. Negotiation updates: Put all agreed credits/repairs in a signed contract addendum. Expect lenders, closing attorneys, and settlement agents to need updates several business days before closing to reflect them on the Closing Disclosure.
  3. If misconduct persists: Submit a written complaint to the North Carolina Real Estate Commission with your timeline, emails, and documents. The Commission’s process can take weeks to months depending on the case.

Exceptions & Pitfalls

  • Ownership of reports: A buyer’s inspection report belongs to the buyer; even so, your broker must disclose any material defects known from any source, whether or not the full report can be shared.
  • Silence can mislead: If a disputed defect is disproved by your inspection, communicate the corrected facts in writing to avoid a misleading impression.
  • Document everything: Keep a dated log of when reports were received and sent. Save emails and texts; they support a Commission complaint or a contract dispute.
  • Put credits in writing: Verbal agreements about credits or repairs are risky. Use a signed addendum and confirm that the Closing Disclosure reflects them before you sign.
  • County and lender variations: Settlement timelines and document cutoffs vary by county and lender; build in a few days for updates to flow to the closing attorney and settlement agent.

Conclusion

In North Carolina, sellers must provide accurate disclosures and correct them before settlement, and brokers must promptly communicate material facts and deliver key documents. If your listing broker delays or withholds inspection information, fix your disclosures in writing, ensure credits/repairs are documented in a signed addendum and reflected on the settlement statement, and, if needed, file a complaint with the North Carolina Real Estate Commission. Next step: deliver your corrected disclosure and inspection findings to the buyer in writing before closing.

Talk to a Real Estate Attorney

If you’re dealing with delayed or uneven disclosure of inspection information during a North Carolina home sale, 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.