Today on Tuesday Topics we will discuss the types of documents that a Broker will use when listing a home for sale.
There are five basic forms that a Broker will require the seller to sign before a home is listed for sale.
1. Working with Real Estate Agents Brochure
This form is important because it explains the different types of agency brokers practice in North Carolina.
The goal is to make sure both the seller and the buyer have no doubt who the broker represents during a real estate transaction.
2. Exclusive Listing Agreement
In the simplest terms the Listing Agreement is an employment agreement between the Broker and Seller. All listing agreements will have the following characteristics:
- Specific start and ending date.
- How to cancel the agreement .
- It will identify the property to be sold.
- It will specify a listing price.
- It will specify the amount of compensation the listing broker and buyer agent will receive.
3. Mineral, Oil & Gas Rights Disclosure Statement
The purpose of this disclosure statement is to make sure that the buyer knows the status of the rights to the subsurface mineral and/or oil or gas resources. Mineral rights and/or oil gas rights can be severed or sold by the owner of the property.
If mineral rights and/or oil gas rights are severed from the property, the owner of those rights may have the right to drill, mine, explore, and remove any of the subsurface mineral and/or oil or gas resources on or from the property either directly from the surface of the property or from a nearby location.
4.Residential Property and Owner’s Association Disclosure Statement
The State of North Carolina requires owners of residential real estate to disclose to potential owners important facts that pertain to the condition of the property being sold. The seller will be asked a series of questions that address the characteristics and conditions of the property that the seller has actual knowledge.
The seller has to provide a Residential Property and Owner’s Association Disclosure Statement prior to the buyer prior to the buyer making an offer on a piece of property. If the buyer and seller enter into a contract and the seller has not provided the buyer this disclosure, the buyer may have cause to cancel the contract.
5.Lead Based Paint Disclosure
This disclosure form is only required if a property was built prior to 1978. Prior to 1978 lead was added to house paint. Lead poisoning in young children may produce permanent neurological damage. The seller is responsible for disclosing to the buyer the possible exposure of lead-based hazards prior to the buyer purchasing the property.
6. Other Important Documents
- Existing property survey
- Copies of construction permits
- Copies of warranties on HVAC systems
- List of improvements or upgrades made to the property by the seller.