What Constitutes a Material Fact in NC Real Estate?

In North Carolina, Sellers are not required to disclose material facts about the property, but the listing agent for a seller IS required to, and they are expected to take reasonable measures to discover them.

A seller cannot, however, cover-up a material issue so it can’t be discovered by an inspection. In other words, they don’t have to tell you about a material issue, but they can’t cover it up.

What constitutes a material fact?

The NC Real Estate Commission describes a material fact is anything that is important or relevant to the transaction. They’ve provided some guidelines.

(1) facts about the property itself, such as a significant property defect or abnormality, i.e., a malfunctioning system, leaking roof, or a drainage problem;

(2) facts that relate directly to the property such as a proposed zoning change, restrictive covenants, or nearby road projects; The proposed Northern Beltway in Winston-Salem, for example.

(3) facts that relate to a parties’ ability to complete the transaction, such as legal issues or lien’s against the property.

(4) facts that are known to be of special importance to a party.

Those are what constitutes a material fact.