Home Buying Basics in North Carolina
North Carolina is a great place to invest in a new home! Even if you know the basics of purchasing a property, you definitely will want to educate yourself on North Carolina specific real estate laws and key issues. Take it from me, this will help save you money, time, stress and lots of frustration!
As said by By Marcia Stewart, Co-Author of Nolo's Essential Guide to Buying Your First Home and Every Landlord's Legal Guide, "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."
According to the article published by Lawyers.com, "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."
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.
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.
Home Inspections in North Carolina
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.
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 theNorth 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 and2002 Formal Ethics Opinion 9.)
Check out Nolo’s Lawyer Directory, to find an experienced real estate attorney in North Carolina.