Way back in the 1700’s, Americans demanded that there be “No taxation without representation!” from the British. Certainly, seems fair enough to me, although history has shown that the Crown saw things a bit differently.
But what about in real estate sales? Can a home be sold without representation? Can a homeowner tell you nothing at all about the home they’re trying to sell you, even if they know something that you should probably know too?
In a word, yes.
While North Carolina does require that sellers furnish a property disclosure about their home, sellers are allowed to answer the questions about their property in one of three ways: “Yes”, “No”, or – in what seems to be an incredible loophole which all but hobbles a buyer’s ability to make a knowledge-based decision – “No Representation”.
In other words, “I’m not saying”.
“No Representation” allows a seller to make no claims about a particular item of their property one way or another, and, because it alleviates a seller’s liability for making incorrect statements, assertions, or claims about their home – whether on purpose or by accident – many, if not most, sellers in North Carolina choose to do just that; check the box next to “No Representation” and tell you nothing about the property at all.
Has the roof ever leaked? Not saying.
Any problems with the foundation? Mum’s the word.
Does it have a septic tank or sewer? Can’t hear you.
How old is the HVAC? No representation.
Any liens? No representation.
Deed restrictions? No representation.
Bad smells? Environmental concerns? Easements?
No representation, no representation, no representation.
So, you’re not going to tell me ANYTHING about the house at all?
Nope.
It seems almost crazy. Here you are trying to buy a home; making what we are constantly reminded of is the biggest financial transaction most of us will ever undertake in our lives; buying a product that is, in and of itself, an incredibly complex thing (notwithstanding all of the other forces, interests, requirements, and obligations that come with it), and the owner doesn’t have to tell you a single thing about it.
Wow. Talk about “buyer beware”.
Ah, yes! And there we have it! “Caveat Emptor”: Let the buyer beware!
Yes, let’s DO talk about that. And when we’re done, if I’ve done my job correctly, I think you may agree as I now do, that allowing sellers to make “No Representation” is not reckless folly at all but is in fact actually in the best interests of both the buyer and the seller.
How could that possibly be? Check back soon and I’ll explain.
Please let me know if you have any questions by calling 252-876-8267 or sending an email.
By Contribution Author, Blaine Staat, Weichert Realtors At Rivers Edge, 220 Front St., Suite A, New Bern