All Forum Posts by: Russell Brazil

I agree with Bruce, if there was an insurance claim against the property that absolutely should be disclosed. 

I find myself in an unusual situation. I am currently under contract for a property, and my inspection period has just expired. While shopping for home insurance, I kept receiving higher premium quotes. Curious about the reason, I consulted my home insurance broker, who informed me that the property had a water damage claim filed a few months ago, which is causing insurers to be cautious.

This information surprised me, as it had not been disclosed by the seller. I reached out to the seller to request details of the repair and asked why this was not mentioned in the seller’s disclosure. On the disclosure form, the seller had indicated “no” to any known damages. The seller responded that since the issue was repaired and he believes there is no ongoing problem, he did not think it needed to be disclosed.

When I asked him to extend the inspection period so I could follow up with the repair company and conduct my own inspection, he declined.

I disagree with this interpretation. From my understanding, based on my experience buying and selling properties in Texas, any known repair or damage—even if resolved—should still be disclosed, along with a note explaining that it was fixed. The seller insists that in North Carolina, he is not required to disclose resolved issues.

I’m looking for guidance on this matter. Does North Carolina law require sellers to disclose past repairs or damages, even if they have been fully addressed? Any insights would be greatly appreciated. Thank you!

 It is not the responsibility of the buyer to look at a previous survey. That is what the disclosures are for….. 

I wish that were the case, but it’s only an inch. Ridiculous I know, but definitely not noticeable to the naked eye. This is truly ridiculous. 

 In that case you should get an attorney involved as encroachment would be a material issue that if known should have been disclosed both to the broker and to any potential buyer. 

@Russell Brazil and @Michael Baum

Thank you both for the suggestions. I was aware of the egress requirement, but was not considering the door size or ceiling heights. I sent an email to the city and received a long response. The bullet in the response that is standing out to me is:

"(7) The accessory dwelling shall not be a short-term residential rental, as defined by City Code section 3-2-152(a)(2), for a period exceeding 120 days per calendar year."

It seems like that really hinders Airbnbing any ADUs in the city. I guess a combo of STR and MTR would be an option.

I am trying to learn and understand... someone told me that its not just size of the home or level of the flip that determines profit, and that in some markets, what is considered a typical profit is 300k based on the 70% ARV formula. Is this true? Is anyone flipping in a market where this is "average"? I kinda get it if 4 and 5 bedroom properties are going for 1.5 million in that market but... thats just math wondering what reality is?