When is the Vacation Rental Addendum required?

QUESTION: My buyer is preparing an offer to buy a home that is currently used as a vacation rental. If my client gets the home, they intend to occupy it full time. I spoke to the listing agent on the phone, and he assured me that the seller and property manager would agree not to sign any more leases after we go under contract. Is Form 2A13-T required to be part of the offer given that seller has said they won’t sign any more lease agreements?

ANSWER: Form 2A13-T is not mandatory for every contract involving a vacation rental, but under these facts, we believe it would be in the best interests of both the buyer and seller to use the form.

We have written here that brokers do not ordinarily have the power to bind their clients to a contract absent proper, legal authority. Even though the listing agent has indicated that the seller and property manager would agree to stop executing leases, the fact remains that neither of them have, in fact, agreed to do so. Paragraph 3 of Form 2A13-T has a checkbox available where the seller can agree, in writing, not to enter into any lease agreements after the contract becomes effective. This enforceable agreement by the seller is far better for your client than the non-binding statement provided by the listing agent, good-intentioned as it may be.

As for the seller, North Carolina’s Vacation Rental Act requires that a seller disclose the time periods that the property is subject to a vacation lease agreement “prior to entering into any contract of sale.” Form 2A13-T was created to fulfill this obligation. While the Vacation Rental Act does not require that the seller’s disclosure be attached to the sales contract, we believe the form provides the easiest way for a seller to demonstrate compliance with the statute.

Finally, Form 2A13-T provides a concise summary of important information that both parties need to know, such as when existing leases need to be provided to the buyer and how many days the property can be encumbered by a short-term vacation rental agreement. Using the form will therefore not only help the buyer and seller fulfill their statutory obligations, but provide each with helpful information both during the transaction and after closing.

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