Home Seller Fails to Disclose Material Home Defect

In North Carolina, a home seller is ordinarily not required to disclose facts about their property - even if there are material defects in the property.

The exception is that a seller must disclose material facts when there is a defect on the property only known to the seller, and the buyer cannot discover the defect through reasonable diligence.

If a seller fails to disclose a material defect related to the property, the home buyer cannot terminate and get their Due Diligence Fee back.

I recommend that as a general rule, I think it’s best for buyers to assume they will not get their due diligence back if a material issue is found.

If they have uncertainty about the condition of a property, they should consider not making an offer.