Give Me That Lease!!!

I own property in Brightwood Trails in Durham, NC and although it is not leased at the moment we are considering renting it out.  When we go to sell the property we will make sure the buyer can look at all the paperwork.  It doesn't make sense for an agent or seller of a property to fight about this.  I think that probably there is something being hidden and hence the fightback on something already agreed to. 

May a buyer inspect existing tenant leases when purchasing a rental or investment property?

Release Date: 09/20/2016

John Wait, Martin & Gifford, PLLC

QUESTION: My client entered into a contract to purchase a townhome that was advertised as an investment or rental property. The Standard Form 2A11-T was filled out and made part of the contract, but the listing agent is now refusing to provide us with the current lease because of privacy laws. Is my client allowed to inspect the lease of the existing tenant? Is there some privacy law that would bar the seller from allowing us to see the lease pursuant to the contract?

ANSWER: If the seller collected personal information as part of the rental application process, then he or she has a duty under both federal and North Carolinaprivacy laws to not disclose such information to unauthorized third parties. “Personal information” includes, but is not limited to, social security numbers, driver’s license numbers, banking information, credit card numbers, and credit reports.

When the seller agreed to the terms of Standard Form 2A11-T, he or she agreed to provide your client with “true and complete copies of all existing leases, rental agreements, outstanding tenant notices, written statements of all oral tenant agreements, statement of all tenant’s deposits, uncured defaults by Seller or tenants, and claims made by or to tenants.” Some of these items may have a tenant’s personal information on them, but most of them likely would not. As long as there is no personal information on the lease agreement in question, then current privacy laws would not prevent the seller from allowing your client to inspect the existing lease in conformance with the contract.

If there is personal information on the lease, the seller can simply redact the personal information before turning it over for inspection. It should also be noted that if the seller used the Standard Form 410-T lease agreement, then the tenant has already agreed to the disclosure your client is seeking. Paragraph 30 of the 410-T allows a landlord to provide information about a tenant to third parties “in accordance with applicable laws.” If your client wants to inspect the tenant’s entire file, including the tenant’s personal information, then he or she should consult with an attorney to make sure they are authorized.

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  2016. 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.

No Representation In Brightwood Trails

Release Date: 09/13/2016

Bill Gifford, Martin & Gifford, PLLC

QUESTION:  I am a licensed broker. I am about to list a residential property for sale that I have owned for several years. Am I allowed to check any of the "No Representation" boxes on the Residential Property Disclosure Statement?

ANSWER:  Our view is that a property owner who has an active real estate license may lawfully choose to check the "No Representation" boxes on the Disclosure Statement. However, that broker retains an obligation to disclose all material facts about the property being sold, including facts that the broker knows about, and facts that the broker reasonably should know about.

Essentially, we see a technical distinction between a property owner's obligations under the Residential Property Disclosure Act and a broker/owner's obligations under the Real Estate License Law.

The Residential Property Disclosure Act (the "RPDA") requires most owners of residential property to deliver a disclosure statement to a purchaser no later than the time the purchaser makes an offer for the property. However, the RPDA allows those owners to either make disclosures concerning specified "characteristics and conditions" of the property, or state that the owner makes no representations as to those "characteristics and conditions". There is no exemption in the RPDA for real estate broker-sellers. Therefore, the RPDA gives brokers the same right to check the "No Representation" boxes as any other seller.

That fact does not excuse brokers from their obligations under the License Law (and Article 2 of the REALTOR® Code of Ethics). Section 93A-6(a)(1) of the License Law obligates brokers to disclose material facts about a transaction in which they are engaged. Section 93A-6(b)(3) makes it clear that this obligation extends to transactions in which the broker is a party (and not necessarily acting as a broker). It states that brokers may be disciplined when: "[t]he licensee has violated any of the provisions of G.S. 93A-6(a) when selling, leasing, or buying the licensee's own property".

Practically speaking, a broker-seller whose license is active has a duty to disclose material facts about his or her property, whether it is accomplished by completing the Disclosure Statement or otherwise.

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  2016. 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.

Who Pays Transfer Fees in Brightwood Trails?

Release Date: 09/06/2016

Will Martin, Martin & Gifford, PLLC

QUESTION: I’m representing a buyer who is closing on a property that has an owner’s association.  I am trying to figure out who is responsible for the payment of a “transfer fee” that’s being charged by the association’s management company.  I’ve reviewed the Offer to Purchase and Contract (form 2-T) and I don’t see any reference to transfer fees on the Contract anymore.  Who is supposed to pay it, my buyer or the seller?

ANSWER:  Assuming that what is meant by the term “transfer fee” is a fee for updating the association’s records to reflect the transfer of the property from the seller to the buyer, the fee is the seller’s responsibility in our opinion.

To understand the basis for our answer to your question, it is important to understand the way in which the latest version of the Contract (released July 2016) assigns responsibility for the payment of the various fees imposed by owner associations and their management companies when a property regulated by the association is bought and sold. 

According to the Contract, the buyer is responsible for the fees that are listed in paragraph 6(b).  These include fees for providing information required by the buyer’s lender and fees charged for the buyer’s future use and enjoyment of the property. 

The seller’s responsibility for association fees is addressed in paragraph 8(j).  In addition to being responsible for fees required to confirm the status of seller’s account regarding dues or assessments, and fees for completing the Disclosure Statement and resale or other certificates relating to a sale of the property, the seller is responsible for fees “…other than those fees required to be paid by Buyer under paragraph 6(b) above.” In other words, any fee not allocated to the buyer in paragraph 6(b) is the seller’s responsibility under the “catch-all” provision in paragraph 8(j)(ii). 

Applying this framework to your question, in our view a fee for updating the association’s records to reflect the change in ownership is not covered under paragraph 6(b) and therefore is the responsibility of the seller.

You are correct that the term “transfer fee” has been taken out of the Contract.  This was done primarily to avoid potential confusion with the term “transfer fee” as defined in a statute that prohibits the practice of including in an association’s governing documents fees that are payable in perpetuity to the association’s developer on all transfers of property in the development.  

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  2016. 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.

Due Diligence and Contract Termination

I recently sold a home in Brightwood Trails and the builder didn't ask for a Due Diligence fee.  I feel lucky for that as both buyers and sellers seem to think that Due Diligence fees are negotiating tools to hit each over the head with.

Release Date: 08/30/2016

John Wait, Martin & Gifford, PLLC

QUESTION: During the due diligence period, my seller received a Form 390-T signed by the buyer stating that the buyer would receive both the earnest money deposit and the due diligence fee on termination. My client disagreed with the due diligence fee portion of the buyer’s 390-T, and responded by sending the buyer a revised 390-T signed by the seller stating that the buyer would only receive the earnest money deposit on termination.

It seems like the parties both agree as to termination and who gets the earnest money, and I just received another offer. Is the contract terminated? Do I need to advise my client to seek legal counsel before he signs the new offer?

ANSWER: We don’t believe the contract is terminated yet based on your facts. Paragraph 6 of Form 390-T states: “This Termination of Contract and Release shall be effective on the date that it has been signed by all of the Parties.” Even though both parties have signed the same form, they disagree about the terms on which they will agree to terminate the contract. This means that both forms are merely an offer from each side to terminate, and unless one of them signs the other’s form, then the offer remains unaccepted.

Although paragraph 5 of Form 390-T only addresses disbursement of the EMD, the buyer has modified it to provide for a refund of the due diligence fee as well.  That’s okay, but unless and until the parties are on the same page regarding all terms of their agreement to terminate, their contract hasn’t been effectively terminated in our view.

You might want to inform the buyer’s agent that the buyer has no right to a refund of the due diligence fee absent a breach of the contract by your client; and if they continue to delay termination, they will risk losing their earnest money deposit as well. As for your client, Standard of Practice 1-7 requires you to advise them to seek legal advice before accepting the second offer, unless the acceptance of the second offer is contingent on the termination of the existing contract.

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  2016. 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.

Cash or Finance in Brightwood Trails

This happened to me when I purchased my home in Brightwood Trails two years ago.

Can buyers be held to their representations regarding financing?

Release Date: 08/02/2016

Bill Gifford, Martin & Gifford, PLLC

QUESTION:  In recent months, I have had several transactions where buyers who have represented that they do not have to obtain a new loan in order to purchase the property have later notified me that they will be financing their purchase with some sort of loan. I suspect that each of these buyers intended all along to obtain a new loan, but checked the "does not" box in paragraph 5(a) of the Contract in order to make their offer look more attractive. Is there anything I can do to protect my seller-clients from this tactic?     

ANSWER:  Unless you can prove that a buyer misrepresented whether he or she needed financing, that buyer's subsequent decision to obtain a loan would not give your seller-client the right to terminate a contract. However, we do have a few suggestions. First, we strongly encourage you and your seller-clients to heed the following advice which appears in the note at the end of paragraph 5(a): "If Buyer represents that Buyer does not have to obtain a new loan in order to purchase the Property, Seller is advised, prior to signing this offer, to obtain documentation from Buyer which demonstrates that Buyer will be able to close on the Property without the necessity of obtaining a new loan." If a buyer is able to provide the requested documentation, it is much more likely that he or she will proceed to close without financing, or will at least be able to easily obtain any financing that he or she decides to seek.

You should also consider having an attorney-drafted addendum available that your seller-clients can insist on attaching to the Contract whenever an offer is received with a "no new loan" representation. The addendum could impose fairly serious consequences on any buyers who decide to seek financing after representing that they do not need to do so. For example, the addendum could give the Seller the right to terminate the contract, and retain the Buyer's Earnest Money Deposit, in the event the Buyer seeks financing in connection with the purchase of the Property.

Buyer agents who employ the tactic you describe are cautioned that any buyer who will need to obtain a new loan in order to purchase a property, but represents otherwise, is engaging in conduct which constitutes a breach of contract. Paragraph 1(e) of the Contract states that the Earnest Money Deposit shall be paid to Seller in the event of a breach by Buyer. Furthermore, buyer agents who are aware of intentional misrepresentations being made by their clients are engaging in conduct which violates both North Carolina's Real Estate License Law and Article 1 of the REALTOR® Code of Ethics. 

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  2016. 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.

HomeTown Hero at Brightwood Trails in Durham, NC

WOW I closed another HomeTown Hero buyer at Brightwood Trails in Durham, NC.  What a great program for Vets, Safety Workers, health care workers and others.  Along with a contribution from Parkmont Lending I also offer a contribution to the buyer.

This saves the buyer potentially thousands of dollars depending on the price range.  This was a new construction home from CalAtlantic so it took over 6 months to close.  In that time frame there were a few snags but we navagated them and the buyers were quite happy.  All in all just another great transaction for a HomeTown Hero.  

Drones and Brightwood Trials

Beazer Construction is starting a new phase in Brightwood Trails and if I was the listing agent I would use a drone to take an overhead picture.  The reason is the site is big and the little painted picture of the subdivision really doesn't tell you anything. If any of you are starting to think about using drones in your business here is some information that might come in handy.

What do I need to know about the FAA's new drone rule?

Release Date: 08/23/2016

Bill Gifford, Martin & Gifford, PLLC

QUESTION: I have heard that there is a new federal rule regarding drones that is taking effect soon. What do I need to know about that rule?

ANSWER:  In late June, the Federal Aviation Administration announced a new "Small Unmanned Aircraft Rule" which goes into effect on August 29, 2016. Under that rule, drones weighing less than 55 pounds will be able to be used for commercial purposes without first obtaining a "Section 333 waiver" from the FAA. This change will make it easier for brokers to use drones in the marketing of their real estate listings. However, brokers should know that many federal and state-imposed restrictions remain on the use of drones for commercial purposes.

Under the new rule, a pilot's license will no longer be required to operate a drone. Instead, drone users need only obtain a "Remote Pilot Certificate with a Small UAS Rating". This Certificate is less expensive and less time-consuming to obtain than a traditional pilot's license. To obtain one, a drone user must meet several eligibility requirements, including taking and passing an initial aeronautical knowledge test. The FAA estimates that the cost to obtain a Remote Pilot Certificate will be $150.00.

The new rule includes many restrictions on when and how drones can be used. For example, drones may only be operated during daylight hours. The person operating the controls must be able to see the drone at all times. Drones may not be operated over a person who is not directly participating in the drone operation, unless that person is under a structure or in a vehicle that will provide protection in the event of an accident. The drone's maximum groundspeed is limited to 100 miles per hour. A drone may not be operated more than 400 feet above ground level, unless it is within a 400 feet of a structure.

The new FAA rule does not address any of the privacy issues associated with drone use. However, state law continues to include several prohibitions: under NCGS §15A-300.1 (b)(2), drones may not be used to photograph a person without that person's consent.

An operator permit from the NC Division of Aviation is still required for all commercial drone operations in North Carolina. Details on the permitting process can be found on the NC Department of Transportation's website here.

Mortgage or No Mortgage on Purchase Offer

QUESTION:  In recent months, I have had several transactions where buyers who have represented that they do not have to obtain a new loan in order to purchase the property have later notified me that they will be financing their purchase with some sort of loan. I suspect that each of these buyers intended all along to obtain a new loan, but checked the "does not" box in paragraph 5(a) of the Contract in order to make their offer look more attractive. Is there anything I can do to protect my seller-clients from this tactic?     

ANSWER:  Unless you can prove that a buyer misrepresented whether he or she needed financing, that buyer's subsequent decision to obtain a loan would not give your seller-client the right to terminate a contract. However, we do have a few suggestions. First, we strongly encourage you and your seller-clients to heed the following advice which appears in the note at the end of paragraph 5(a): "If Buyer represents that Buyer does not have to obtain a new loan in order to purchase the Property, Seller is advised,prior to signing this offer, to obtain documentation from Buyer which demonstrates that Buyer will be able to close on the Property without the necessity of obtaining a new loan." If a buyer is able to provide the requested documentation, it is much more likely that he or she will proceed to close without financing, or will at least be able to easily obtain any financing that he or she decides to seek.

You should also consider having an attorney-drafted addendum available that your seller-clients can insist on attaching to the Contract whenever an offer is received with a "no new loan" representation. The addendum could impose fairly serious consequences on any buyers who decide to seek financing after representing that they do not need to do so. For example, the addendum could give the Seller the right to terminate the contract, and retain the Buyer's Earnest Money Deposit, in the event the Buyer seeks financing in connection with the purchase of the Property.

Buyer agents who employ the tactic you describe are cautioned that any buyer who will need to obtain a new loan in order to purchase a property, but represents otherwise, is engaging in conduct which constitutes a breach of contract. Paragraph 1(e) of the Contract states that the Earnest Money Deposit shall be paid to Seller in the event of a breach by Buyer. Furthermore, buyer agents who are aware of intentional misrepresentations being made by their clients are engaging in conduct which violates both North Carolina's Real Estate License Law and Article 1 of the REALTOR® Code of Ethics. 

Down Payment Assistance for HomeTown Heros in the Triangle Area

I work with Parkmont Lending who has a wonderful program that helps my buyer clients with several forms of downpayment assistance.  You could end up saving thousands of dollars just by calling Gene Allen at Fathom Realty.  If you live in the Durham/Raleigh area of North Carolina give me a call so that we can go over the details.  Please don't miss out on this great opportunity to own a home.

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What Is A Google Keep? 

 

BY GENE ALLEN

Real Estate Agent with Fathom Realty

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July 27, 2016 12:17 PM

 

REPORT

I know in the olden days of English lore a Keep was a fortified area inside a castle.  Now in this day we have the Google Keep. It is always with me in my travels in Cary and Raleigh as well as Durham.  What exactly is it and how can you use it in your day to day real estate world.

Keep is an organizational and note taking platform.  I think of it as more then just that.  It has reminders, you can take pictures, write notes, you can talk to it, collaborate with it and much more.  Once you get that information in there you can search it.  You can now add labels to Keep which makes searching easier, you can color code your notes.  Your reminders can be time  or location based.  Pretty cool.  Think Alexis is neat because it lets you add something to a shopping list.  Tell Keep to add AA batteries to a shopping list and it will.  Better yet when you are on your computer or Tablet and logged into Chrome just push the speaker button and say the same thing.  There is a label in Keep that is called Shopping and your AA batteries will go there.  Do it on your phone, do it on your computer or your tablet and there it is.  

So I can transcribe texts from photos, use it as a stenographer, set reminders, copy to Google Docs, share and collaborate with others and filter a search.  Google keeps adding to Keep and making it better.  Don't forget if you want to see what reminders you have for the day just go to your browser and type MY REMINDERS and your days reminders are there.  

When Do I Need To Be A BIC?

If my LLC joins a "team", do I need to designate myself as broker-in-charge?

Release Date: 03/08/2016

QUESTION:  I am a broker with XYZ Real Estate. At the suggestion of my accountant, I formed a Limited Liability Company for the purpose of receiving the compensation paid to me by XYZ. Although my LLC is licensed, I have never had anyone else associated with me and have never had to designate myself as broker-in-charge. I am now thinking of forming a "team" with another XYZ agent (John) to work together on transactions. XYZ's broker-in-charge has told me that I should officially associate John with my LLC on the Real Estate Commission's records. Doesn't that mean I would have to designate myself as the broker-in-charge of my firm (and complete the required 12 hour course)?

ANSWER:  The answer is yes. The broker-in-charge rule includes a provision - Rule A.0110(d) - which states that a licensed real estate firm is not required to have a broker-in-charge if it meets four tests. One of those tests is that the firm "has no licensed or unlicensed person associated with it other than its qualifying broker". If John associates with your firm, your firm no longer qualifies for the exemption.

In the Real Estate Commission's 2013-2014 Broker-in-Charge Course Materials relating to "Advertising Issues", the Commission suggests that there is a way for you to avoid the broker-in-charge requirement in the team context: do not have a separate licensed entity involved in your "team". The Course Materials point out that some teams are comprised of brokers who are associated solely with one company but who have agreed to cooperate on transactions in some form, and to have all production reported primarily under one broker's name. The Course Materials note: "So long as the team leader does not create an entity (thus requiring a firm license), she and all members of her team still only have one official affiliation in Commission records and that is with XYZ Realty under (its) broker-in-charge."

If your LLC is not used to receive shared "team" compensation from XYZ, then XYZ's broker-in-charge would bear full responsibility for fulfilling all of the broker-in-charge duties relating to its affiliated agents. 

Buyer fails to deliver earnest money or due diligence fee. Now what?

I sell residential homes in Cary, NC and wonder how would a seller deliver notice to the buyer of his property when he fails to deliver the earnest money or due diligence fee.  Thanks to our local association I now have the answer.  Now if I can get the agents to fill in those blanks on the purchase offer I would be in there.

What kind of notice is necessary when the buyer has failed to deliver the earnest money deposit and the due diligence fee?

Release Date: 04/05/2016

Question: We have a fully executed contract, but the time has passed for the buyers to deliver the earnest money deposit and the due diligence fee. When we send a notice to the buyers to deliver cash or immediately available funds within one banking day, does it have to be in an old-fashioned, real paper, writing; or can the notice be an email or a letter that is created through DocuSign? In other words, what means are necessary to provide the buyers with sufficient notice under the standard form Offer to Purchase and Contract (“OTPC”)?

Answer: Paragraph 1(d) of the OTPC does require notice concerning the earnest money deposit and due diligence fee to be in writing. However, paragraph 21 of the OTPC states that any action under the contract, including notices, can be communicated by “electronic means.” Physical paper is not necessary.

Paragraph 21 also provides that notice may be sent “to any mailing address, e-mail address or fax number set forth in the ‘Notice Information’ section” of the OTPC, and that notice may be given to either the party or the party’s agent. Before sending your notice, be sure to double check the Notice Information section to make sure you are sending notice to the right place. 

Golden Belt Historical District Takes Shape In Durham

What is the Golden Belt Historical District in Durham, NC and why should home sellers and home buyers care?  The local historic designation helps protect the character of Durham's most intact historic mill village.  That is a mouthful to only say that certain types of buildings will be allowed, zoning will be restricted and the use of certain building materials is restricted.  

The boundries are roughly Elizabeth Street to the west, and extends east acrooss Alston Ave to Holman St. The northern boundary runs along the former Golden Belt factories and Taylor St.  The south includes parts of East Main Street and Morning Glory Ave.

The Golden Belt Co. built factories and also houses in the mill village.  Several properties are on the National Historic Register as well.  The designation discourages tear-downs and is aimed at slowing down gentrification.  Residents are worried that once the McMansions start being built the affordability of the entire area is in jeopardy.  Right now most of the homes are modest, affordable and close to downtown and that is a good thing.  

Another Material Condition

Just when I think I have heard it all in real estate up comes another one.  This is about a seller making the sale of his house contingent on the buyer purchasing a $10,000 membership into a golf club.

Is a seller's "condition" to signing a sales contract a material fact?

Release Date: 04/19/2016

QUESTION:  I showed my out-of-town buyer clients a property located in a golf course community. They liked the property and submitted a full-price offer. We received a counter which informed the buyers that they would have to purchase a golf club membership with a $10,000 initiation fee as part of the contract. The listing agent told me that this payment would be a condition to any sale because, in the event of such a payment, the seller would receive a substantial refund of his own initiation fee . This condition was not disclosed in the MLS and was not disclosed to me when I made an appointment to show the property. My buyers do not play golf, have no interest in joining a golf club, and now have to make another trip to North Carolina to find another home. Was the seller's condition a material fact that the listing agent should have disclosed?

ANSWER:  We would recommend disclosure in the scenario you have described . We note that typically, it would be in the interest of everyone concerned for the listing agent to disclose any significant conditions a seller will insist on attaching to a sale of his or her property. For example, if a seller will only consider cash offers, that fact should be disclosed in the MLS listing. That way, agents don't waste time showing properties to (and possibly preparing offers for) buyers who will never be able to make an all-cash purchase.

If the practice of requiring the purchase of a club membership is widespread in your community, it is arguable that buyer agents who show golf course properties should know about the incentives being offered. Ideally, those buyer agents would inquire about such incentives before submitting an offer, and would also ask the listing agent if the seller would be looking to condition any sale on the purchase of a membership.

Having said that, we believe that if a seller will insist that any buyer purchase a $10,000 club membership as a condition to signing a sales contract, that condition is a material fact that should be disclosed by the listing agent prior to the time that a buyer submits an offer for the property. We relayed this scenario to an attorney with the North Carolina Real Estate Commission, and that attorney reached the same conclusion.

The Real Estate Commission's admittedly broad definition of a material fact is "any fact that is important or relevant to the issue at hand." We believe that the seller's condition you have described falls within this definition. Furthermore, Article 2 of the REALTOR® Code of Ethics requires REALTORS® to avoid concealment of pertinent facts relating to the property or the transaction. In our view, the seller's condition is a fact that is pertinent to the transaction being contemplated by the parties.

510 Duluth St Durham, NC

I am looking for investment homes not far from by stomping grounds of Brightwood Trails and came across 510 Duluth St in Durham, NC.  Now this was a little further away but with the house being all brick and REO property it sounded interesting.  

Overall the house on 510 Duluth St was OK but I found the crawl space to be a bit more wet then I prefer in a home.  After talking it over with my investor he decided to pass.  One of the items we agree on moisture.  It is hard to fix and the damage done is often hidde or takes years to notice.  It looked like most of the homes in  Westwood Estates had crawl spaces.  

If I would have the right type buyer this house would have been great with a 203 K rehab loan and my HomeTown Hero program.  If you are looking to buy a home in Westwood Estates or another area of Durham call me as I have you covered.