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Lyman J. (Greg) Gregory, III



90 Southside Avenue,

Suite 100

Asheville, NC 28801

90 Southside Avenue Suite 100


90 Southside Avenue Suite 100

A Legal Moment

A Review of the Residential

Property Disclosure Statement


        I know we are all familar with the Residential Property Disclsoure Statement; however, I thought it would be useful to go over some lesser known rules regarding the form.  First, there are a number of exempt transfers such as the following: foreclosure sales, REO sales, sales from fiduciaries such as executors and trustees, sales of newly constructed dwellings, and sales when both parties waive the requirement.

           Second, regarding the statement, a broker's duty is to inform a client of his or her rights and obligations in providing the statement.  A broker is not liable for a seller's refusal to provide a statement if the broker notifies the seller of his or her obligation to do so.  A broker's independent duty to disclose material facts regarding the property is not altered or affected by a seller's compliance or non-compliance.

        Third, a seller is not liable for money damages for failing to provide a disclosure statement.  A buyer's sole remedy is to cancel the contract within three days of the earlier of receipt of the statement or the contract date.  Any information on a disclosure statement would certainly be evidence in a lawsuit alleging seller fraud.

     This newsletter concludes my series on issues of disclosure.  Beginning in September, I will address various challenging contracting situations such as short sales, REO sales, sales from estates, and sales of new construction.



Do not hesitate to contact me to receive more information on this topic or to suggest topics for future editions of 'A Legal Moment'. You may not rely on this content as legal advice for any specific situation, but should instead contact an attorney for specific advice.

Miller, Marshall, Roth , P.C. • 90 Southside Avenue Suite 100 • Asheville, NC 28801
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