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Home Buying Basics in North Carolina

By Marcia Stewart, Co-Author of Nolo's Essential Guide to Buying Your First Home and Every Landlord's Legal Guide
Buying a house in North Carolina? Here are some key issues you need to know about.

Buying a house is a major purchase. To do it right, take the time to determine what you can afford, the ideal neighborhood, and what features you need in a house, condo, or other type of home. And be aware of the legal issues involved, such as disclosures, purchase contracts, and potential title defects. With proper preparation, careful choice of a real estate agent, and prudent use of other qualified professionals, buying a home in North Carolina can be a positive experience.

Advantages of Working With a Real Estate Agent in North Carolina

Before buying a house in North Carolina, contact a real estate agent who can help you find your home and handle all the many details involved with the purchase. Some of the benefits of using a real estate agent include the following:

  • knowledge of neighborhoods, average home prices, and market conditions
  • ability to match homes to your needs and budget
  • help preparing a viable offer and handling other paperwork, and
  • negotiating the final deal.

Your agent should guide you every step of the way, from drafting your written offer and negotiating with the seller on price and other key terms to coordinating the escrow process and house closing. Your real estate agent should also help you locate other professionals to assist you in the homebuying process, such as mortgage brokers and home inspectors.

And the good news is that working with a real estate agent won’t cost you anything. The seller usually pays the entire real estate commission (typically 5% to 6% of the house sale price, split between the seller’s agent and yours).

Personal referrals from other home buyers are usually the best way to select a real estate agent. You can find licensed North Carolina real estate agents at the North Carolina Real Estate Commission’s Licensee Info Search. Other useful resources include real estate websites such as Zillow and Trulia which have customer reviews of real estate agents.

Be sure the agent you choose has experience representing buyers, good references, and qualifications to meet your housebuying needs in terms of your ideal location, type of property, and budget.

Seller Disclosure Requirements in North Carolina

State law in North Carolina (North Carolina General Statutes Section 47E-4) requires sellers to provide buyers a disclosure form, which includes details on the property, including:

  • defects in the plumbing, electrical, and other house systems
  • the property’s water supply source and sewage disposal system
  • conditions such as contaminated soil or asbestos
  • homeowners’ association fees and services provided, such as trash removal, and
  • other specified details of the property, such as shared driveways or easements.

Disclosures must be on a Residential Property and Owners' Association Disclosure Statement form established by the North Carolina Real Estate Commission. Certain types of sales (such as newly built, never inhabited, homes) are exempt from state disclosure rules.

Seller disclosures are important for you as a buyer, since just looking at a property may not be enough to tell you what problems its owner encountered with it while living there.

In addition to state-required disclosures, sellers of houses built before 1978 must comply with federal Title X disclosures regarding lead-based paint and hazards. See the lead disclosure section of the EPA’s website, for details.

For more details on seller disclosures, see Considerations Before Selling a House in North Carolina.

Home Inspections in North Carolina

Buyers should not rely solely on the seller's disclosures, however, but should hire an independent home inspector to verify the information from the seller's disclosure. Many buyers make their offer contingent upon a satisfactory inspection report to be sure no material defects exist and to identify the following:

  • termites and other pests
    • soil settlement, drainage, or erosion issues
  • noise and odor problems
  • conditions that could lead to mold
  • foundation and structural integrity, and
  • the condition of the heating and cooling systems; electrical; plumbing; walls; drainage; basement; and flooring.

See What You Need to Know About Home Inspections When Buying a House for more details.

Real Estate Purchase Agreements in North Carolina

A purchase agreement is a legal document that contains the material terms and conditions of your real estate transaction. It must be in writing and signed by the parties (buyers and sellers) to the contract, and include an offer to sell or purchase, an acceptance of the offer, the sale price, and an adequate description of the property. See the North Carolina Association of Realtors Offer to Purchase and Contract for a sample.

Title Issues in North Carolina

A buyer should always obtain a title search from a title company before purchasing a home. The title company searches public records and other sources for any liens, easements (such as the utility company’s right to access part of the property), or other encumbrances or title restrictions that may affect the property. If the title search locates problems, the buyer should require the seller to correct those problems as a condition to closing.

You should also consider purchasing a title insurance policy to protect the title to the property against adverse claims by third parties, or any clouds on the title missed by the title search. Mortgage companies usually require buyers to purchase a title insurance policy in connection with obtaining a mortgage.

For more details on title insurance, escrow, and closing, see Sandy Gadow’s website, Buying, Selling, and Closing Simplified, which includes a state-by-state guide to closing practices.

Working With a Lawyer in North Carolina

Unlike many states, North Carolina requires sellers to involve a lawyer in the house closing and other aspects of the real estate transaction. (For details, see the North Carolina State Bar ethics opinions that set that out and describe what non-attorneys may do in the real estate transaction process: Authorized Practice Advisory Opinion 2002-1 and 2002 Formal Ethics Opinion 9.)

Check out Nolo’s Lawyer Directory, to find an experienced real estate attorney in North Carolina.

More Information on Buying a House

The North Carolina Bar Association publishes a free brochure on buying a home in North Carolina.

The Buying a House section on Nolo.com includes a variety of useful articles on all aspects of the house buying process, including advice on getting a mortgage, figuring out what price, contingencies, and other terms to offer, arranging home inspections, and closing the deal.

For detailed information on every phase of buying a home, from figuring out your needs and what you can afford to doing the final walkthrough and attending the closing, see Nolo’s Essential Guide to Buying Your First Home, by Ilona Bray, Alayna Schroeder, and Marcia Stewart.

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