Seller said "He is not required to disclose water damage repair done"

[Samuel Gebretnsae]

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!

[Russell Brazil]

Quote from @Samuel Gebretnsae:

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!

 Disclosure laws vary greatly by state. Half the states do not even require any type of Disclosure whatsoever.

But as sort of a baseline, damage that has been repaired does not need to be disclosed in most states. I'm a broker in 18 states, and none that I can think of require Disclosure of repaired issues, including NC. The NC disclosure form does ask if there have been past flood insurance claims, or damage from past floods or FEMA events. But if its not related to that type of water damage, the other questions ask about present tense issues, and not past issues.