A listing broker is aware of a significant hidden defect in a property he/she listed, but the seller checked "No Representation" on the Residential Property Disclosure Statement. The listing broker does not describe the defect in the listing data and does not tell a selling broker who is working with a prospective buyer. The selling broker does not discover the hidden defect and therefore; does not disclose the defect to the prospective buyer. Under N. C. Real Estate License Law, who is responsible for nondisclosure to the purchaser?

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Social Studies

Danica Wilkins

31 March, 13:09

A listing broker is aware of a significant hidden defect in a property he/she listed, but the seller checked "No Representation" on the Residential Property Disclosure Statement. The listing broker does not describe the defect in the listing data and does not tell a selling broker who is working with a prospective buyer. The selling broker does not discover the hidden defect and therefore; does not disclose the defect to the prospective buyer. Under N. C. Real Estate License Law, who is responsible for nondisclosure to the purchaser?

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Boss · Answer 1

Answer: The listing broker only

Explanation:

The property disclosure statement is a series of documents in which the seller discloses any kinds of issues, defects, or previous repairs for the home.

Under the North Carolina License Law, only the listing broker is responsible for non disclosure because no representation on the property disclosure statement, the implication of this is that the seller has intentionally refuse to give information on the state of property and this is allowed under NC real estate law. It is a way sellers smartly avoid paying for any noticed defect in their property after sale has been made.