Do all my seller-clients need to sign the new Residential Property Disclosure Statement?

QUESTION:  I heard that the Real Estate Commission recently approved a revised version of the Residential Property Disclosure Statement. Do all of my seller clients need to sign the new version of that form? Or do I just need to use it for my new listings?

ANSWER:  All of your seller clients do not need to sign the recently updated version of the Residential Property and Owners’ Association Disclosure Statement (the “RPDS”).

When the Real Estate Commission recently approved some changes to the RPDS, it also clarified when the updated version must be used. The Commission’s rule governing the RPDS (Rule A.0114) was amended to state that the new version of the form must be used for “all properties placed on the market on or after July 1, 2018” and that the earlier version of the RPDS (the July 2014 version) should be used for all properties placed on the market prior to July 1, 2018. Look in the lower left-hand corner of the form to confirm that you are using the correct version.

There is a caveat: subparagraph (c) of Rule A.0114 states that if a corrected disclosure statement is required by G.S. 47E-7, and that statement is prepared on or after July 1, 2018 for a property placed on the market prior to July 1, 2018, the new version of the RPDS must be used. As a reminder, G.S. 47E-7 states that if, subsequent to the owner’s delivery of the RPDS to a purchaser, the owner discovers a material inaccuracy in the disclosure statement, or the RPDS is rendered inaccurate in a material way by the occurrence of some event or circumstance, the owner shall promptly correct the inaccuracy by delivering a corrected RPDS to the purchaser. For example, if your seller-client becomes aware of a defect with the home’s electrical system, and question 7 in the original RPDS was answered “no,” your seller will either need to make the repairs necessary or deliver a corrected RPDS using the new version of the form.

What are the changes to the RPDS? One change is the replacement of the words “purchaser” and “purchasers” with the words “buyer” and “buyers.” Another change is separating the questions in former paragraph 32 (relating to deed restrictions and Property Owners Associations) into two separate paragraphs, namely paragraphs 32 and 33. Finally, the Commission has added “Master Insurance” to the list of services and amenities in former paragraph 37 (now 38).

Release Date: 07/26/2018

© Copyright 2018 - 2024. North Carolina Association of REALTORS®, Inc.

This article is intended solely for the benefit of NC REALTORS® members, who may reproduce and distribute it to other NC REALTORS® members and their clients, provided it is reproduced in its entirety without any change to its format or content, including disclaimer and copyright notice, and provided that any such reproduction is not intended for monetary gain. Any unauthorized reproduction, use or distribution is prohibited.

Filed Under: Disclosure,