Do I have to disclose damage to a home that has been fully repaired?

QUESTION: I am about to list a house for a new client. During a recent meeting, my client told me about some repairs that were completed six months ago following a plumbing leak. She said that the leak caused some significant damage to the walls, ceilings, and floors in her home. I inspected the areas that were damaged, and I could see no evidence of the leak or repairs. My client provided me with the paid invoices she received from her licensed contractor, who did the repairs. Do I have a duty to disclose the repairs if they have fully remediated the damage?

ANSWER: In most cases, repaired damage to a home is going to be a material fact that must be disclosed under the License Law. In other cases where it may not be clear if repaired damage is a material fact, agents should err on the side of disclosure.

The North Carolina Real Estate Commission has said that a “material fact is any fact that could affect a reasonable person’s decision to buy, sell, or lease real property. All brokers have a duty to discover and disclose material facts, as mandated by General Statute 93A-6(a)(1) and by Commission Rule 58A .0114(c). These legal requirements create an affirmative duty, meaning brokers cannot simply say I didn’t know about this fact. All brokers, whether a buyer agent or a listing agent, must take action to discover and disclose.” You can read the Commission’s entire eBulletin article on material facts here.

Since repaired damage to a property is a fact that would likely affect a reasonable buyer’s decision in the buying process, it falls within the definition of material fact in most cases.

This conclusion is supported by the updated version of the Residential Property and Owners’ Association Disclosure Statement. On the first page of that form in the section labeled “OWNERS,” the form states that “some issues, even if repaired, such as structural issues and fire damage, remain material facts and must be disclosed by a broker even after repairs are made.” These two examples in the RPOADS are not an exclusive list. There are innumerable other damages and repairs that, if significant enough, or recent enough, or both, should be disclosed even if the damage has been fully repaired by a qualified contractor.

However, even if you discover repaired damage on a listing that is not significant or recent, disclosure should be strongly considered for several reasons.

First, property damage often leads to insurance claims. Unless buyers are informed of a repair, especially a substantial or recent one, they might not inquire about a prior insurance claim. An insurance claim could affect the cost of future property insurance and would also very likely affect the buyer’s offer terms. This means that again, in most cases, a repair involving an insurance claim is likely going to be a material fact.

Second, it is increasingly common for buyers who learn of repaired damage after going under contract – even small or not very recent repairs – to pursue claims for the return of their Due Diligence Fee, Earnest Money Deposit, inspection fees, and more. Some of these claims by buyers are well-founded. Other claims, especially claims where there is no evidence that a seller or listing agent either knew or should have known about an alleged damage or repair, are not very compelling.

In either case, discovering, investigating, and disclosing as much repaired damage as possible on a listing prevents these sorts of claims by a buyer, whether well-founded or not. Even if a buyer’s claim about alleged non-disclosure of repaired damage is not well-founded, a buyer’s demand to be reimbursed is stressful for listing agents and sellers. If the buyer’s claims are well-founded, then a listing agent may be subject to discipline, and both the listing agent and seller may face liability.

The bottom line is that full investigation and disclosure will minimize the risks of claims for damages and potential discipline. You can read more about litigation issues in these kinds of cases in this Q&A.

Release Date: 10/2/2025

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