Friday, June 30, 2017

Are Seller Property Disclosures Required For Condo Sales?

Release Date: 06/27/2017

Will Martin , Martin & Gifford, PLLC

QUESTION: I represent a buyer who is interested in making an offer on a condo I’ve shown him.  I’ve asked the listing agent for copies of the Residential Property and Owners Association Disclosure Statement and the Mineral and Oil and Gas Rights Disclosure Statement, but she insists that they aren’t required for condo sales.  When I asked why, she said there are two reasons: one, the law only applies to the sale of real property and the owner of a condo doesn’t own the property under the condo, and two, the law only applies to transfers of real estate where there are one to four dwelling units, and the complex where the condo is located has more than four units.  That doesn’t sound right to me.  What do you think?

ANSWER: We don’t think it sounds right either.  The law in question here is the Residential Property Disclosure Act (the “Act”).  Section 47E-1 provides that the Act is applicable to specified “transfers of residential real property consisting of not less than one nor more than four dwelling units.”  According to Section 47E-3, the term "real property" is defined as “the lot or parcel, and the dwelling unit(s) thereon, described in a real estate contract subject to this Chapter.”

Regarding the first reason the listing agent gives for her position that the Act doesn’t apply to condo sales, it’s true that the owner of a condo does not own the real estate under his or her condo in the same way as the owner of a single-family, detached home. However, they do own the real estate on which their condo is situated; it’s just that they own it together or ‘in common” with all the other owners in the complex along with all the other common areas.  Thus, in our view, the sale of a condo unit is a transfer of residential real property as that term is defined in the Act.

As to the second reason given by the listing agent for the inapplicability of the Act to this condo sale, it’s not the total number of units in the condo complex that determines whether the Act applies or not, it’s the number of dwelling units being transferred.  Since this potential sale is for one condo unit, the Act applies and the owner is obligated to provide both Disclosure Statements, assuming that none of the exemptions set forth in Section 47E-2 apply. 
NC REALTORS® provides articles on legal topics as a member service. They are general statements of applicable legal and ethical principles for member education only. They do not constitute legal advice. The services of a private attorney should be sought for legal advice.

© Copyright  2017. North Carolina Association of REALTORS®, Inc. This article is intended solely for the benefit of NC REALTORS® members, who may reproduce and distribute it to other NC REALTORS® members and their clients, provided it is reproduced in its entirety without any change to its format or content, including disclaimer and copyright notice, and provided that any such reproduction is not intended for monetary gain. Any unauthorized reproduction, use or distribution is prohibited.

Wednesday, June 14, 2017

How To Cope With A GAP in Production and Income...

Everyone from time to time faces a GAP in your business

GAP = General Absence of Production

The key to closing the GAP is to quickly recognize and correct the root cause of your GAP. 

Things to look for:

  • Personal Distractions: Sickness, Fitness, Relationships, Children, Finances, etc.
  • Multiple transactions in process at the same time and you’ve stopped daily prospecting: Your daily focus must become and remain on looking for buyers ready to buy and sellers ready to sell.
  • You have stopped using systems to help manage your database: A CRM database management platform, when used properly and consistently, will not allow your prospects to fall through the cracks. It will also retain front of mind awareness for your A and A+ referral sources.
  • Your attitude has gone sour: Keep check on your attitude once it goes south so follows your production and income. You may have lost some good habits and picked up a few bad ones.


  • Separate personal and business issues: Leave your home worries at home... or your work suffers only exasperating issues like finance and relationship stress.
  • Manage your Time wisely and always schedule time to prospect first: Time block out a minimum of 1 hour, 5 days per week, to look for new business.
  • Be productive... not just busy: Discovering where you are wasting time, and on what... and who are the energy vampires in your life?
  • Refresh your CRM with new Items of Value and action plans: This will give you a fresh outlook on prospecting. Data check all your contacts to make certain you have good information on everyone in your Book of Business (B.o.B.)
  • Take time off to recharge... and then come back with a vengeance: A good rule of thumb is for every 40 hours you work shut it off at least 24. Relax and do something you enjoy. Put a message on your email and phone you will be returning all calls the next day... have a buddy agent available to handle emergencies and you do the same for them when they are drinking a cold one.