Mineral and Oil and Gas Rights Mandatory Disclosure Statement: A seller must deliver this form
when a buyer makes an offer, https://www.ncrec.gov/Forms/Consumer/rec425.pdf. The purpose of the
form is to give the seller an opportunity to disclose whether the mineral, oil and/or gas rights have been
severed from the property. If the seller answers “Yes” to any question, ask for more information. Note
that sellers have the right to make “no representation” as to some of the statements on the form.
Restrictive Covenants and Homeowners’ Association Bylaws: Obtain and review all available
restrictive covenants and homeowner association documents to verify that your intended use of the
property will be permitted, and that you understand other requirements and restrictions imposed in the
neighborhood. These might include things like operating a business from the home, renting the home,
paint colors, parking, or having animals. If a property is subject to a homeowners' association ("HOA"), it
is also a good idea to inquire about the HOA's financial situation and whether anticipated expenses could
lead to an assessment.
Q: Are there special considerations for older homes?
A:
Yes, with older homes you should inquire about underground fuel storage tanks, lead-based paint, and
materials containing asbestos. If present, these can pose health and safety issues, so ask the seller to
remedy these issues prior to closing. Also, be aware that historic homes may be subject to special zoning
requirements.
Q: What are some due diligence steps for buying an unimproved lot or land?
A:
If the seller (or seller’ broker) indicates that city sewer and/or water services are available, contact the city utilities department to confirm this, preferably in writing. If city sewer service is not available,
contact the county’s environmental health department and order a soil evaluation test (aka a “perc” or
percolation test) to determine whether the soil can support an onsite septic system for the number of
bedrooms you plan to have. There is no way to determine the quantity and quality of available water on
the property without drilling a well, but you may ask neighbors about their water quantity and quality,
and whether they use water filters. Consider hiring an engineering firm to perform a soil compaction test
to determine if the soil can support the structure(s) you wants to build. Also consider getting a survey,
whether the property is located in a flood zone, and researching building restrictions relevant to the area,
such as ridge line protections in the mountains, CAMA restrictions along the coast, and wetlands
protections along waterways and low-lying areas. Make sure it has access from a public road or
otherwise, and is not “landlocked.”
Q: What is a “walk-through” and why is it important?
A:
A “walk-through” inspection is your final opportunity before closing to go through the property to
confirm that all of the repairs and services promised by the seller have been completed and that the