We have some new Realtor® forms as of January 1, 2015. The reason for the forms is the new mandatory requirements for disclosing Mineral, Oil and Gas Rights that convey with the sale of residential real estate here in North Carolina. Thus we have a new RE Commission Disclosure Form rec425 and four of the other standard NC Association of Realtors® Joint forms were changed to accommodate the new disclosure form.
They are the Offer to Purchase and Contract 2-T, the Offer to Purchase and Contract Vacant Land 12-T, the Exclusive Right to Sell Listing Agreement form-101 and the Offer to Purchase and Contract—New Construction form-800-T. Samples of these forms can be found here: SAMPLE FORMS
In the past this disclosure was handled as a part of the Offer to Purchase form as new home sales did not have to provide the NCREC Property Disclosure to customers. Now transfers of residential real property consisting of not less than one or more than four dwelling units are required to provide a new disclosure form that discloses Mineral, Oil and Gas Rights of the property This is required for new home sales whether or not the transaction handled with the assistance of a licensed real estate broker or not (applies to for sale by owners as well.) Thus, the new form is required for:
(1) Sale or exchange,
(2) Installment land sales contract,
(3) Option, or
(4) Lease with option to purchase, with some exceptions.
According to North Carolina General Statute § 47E-2, the following transfers are exempt from these provisions:
(1) Transfers pursuant to court order, including transfers ordered by a court in administration of an estate, transfers pursuant to a writ of execution, transfers by foreclosure sale, transfers by a trustee in bankruptcy, transfers by eminent domain, and transfers resulting from a decree for specific performance.
(2) Transfers to a beneficiary from the grantor or his successor in interest in a deed of trust, or to a mortgagee from the mortgagor or his successor in interest in a mortgage, if the indebtedness is in default; transfers by a trustee under a deed of trust or a mortgagee under a mortgage, if the indebtedness is in default; transfers by a trustee under a deed of trust or a mortgagee under a mortgage pursuant to a foreclosure sale, or transfers by a beneficiary under a deed of trust, who has acquired the real property at a sale conducted pursuant to a foreclosure sale under a deed of trust.
(3) Transfers by a fiduciary in the course of the administration of a decedent’s estate, guardianship, conservatorship, or trust.
(4) Transfers from one or more co-owners solely to one or more other co-owners.
(5) Transfers made solely to a spouse or a person or persons in the lineal line of consanguinity of one or more transferors.
(6) Transfers between spouses resulting from a decree of divorce or a distribution pursuant to Chapter 50 of the General Statutes or comparable provision of another state.
(7) Transfers made by virtue of the record owner’s failure to pay any federal, State, or local taxes.
(8) Transfers to or from the State or any political subdivision of the State.
(9) Transfers involving the first sale of a dwelling never inhabited.
(10) Lease with option to purchase contracts where the lessee occupies or intends to occupy the dwelling.
(11) Transfers between parties when both parties agree not to complete a residential property disclosure statement or owners’ association and mandatory covenants disclosure statement.