North Carolina Realtor MUST WATCH - 2023 Contract Updates

TL;DR

The July 2023 updates to the North Carolina standard offer to purchase and contract include changes related to property inclusions, exercise equipment, buyer's due diligence process, good title legal access, and deed taxes and fees.

Transcript

I know what you're thinking didn't I just do this a year ago and the answer is yes yes I did but today we're here to talk about the July 2023 updates to the North Carolina standard offer to purchase and contract let's start from the top so I actually have the commentary from the North Carolina Association of Realtors and then the marked up contract... Read More

Key Insights

• 👶 The new checkboxes for additional property inclusions aim to provide clarity and avoid disputes between buyers and sellers.
• 🏃 The clarification regarding exercise equipment helps agents and clients have earlier discussions about what will be transferred at closing.
• 💅 The language regarding governmental compliance encourages buyers to research potential violations and addresses the seller's responsibility to cure any discovered violations.
• 👋 The revised section on good title legal access prevents buyers from using minor encumbrances to back out of contracts.
• 🤱 The changes to the deed taxes and fees section make it easier to indicate the intended recipient of the deed without requiring contract amendments.
• 😶‍🌫️ The restriction on recording the contract without buyer or seller consent prevents unnecessary disputes and clouds on title.
• 🍧 Despite having fewer changes than the previous year, the July 2023 updates still include important provisions for North Carolina real estate agents.

Questions & Answers

Q: What are some of the new checkboxes added to the North Carolina standard offer to purchase and contract?

The new checkboxes include options for indicating whether the property includes a manufactured home, off-site septic lot, boat slip, garage parking space, or storage unit.

Q: What types of exercise equipment will be transferred to the buyer at closing?

Exercise equipment or devices that are attached to the property, such as pull-up bars or wall-mounted equipment, will be transferred to the buyer at closing.

Q: How does the updated contract encourage buyers to investigate governmental compliance?

The contract now includes language encouraging buyers to undertake investigations into governmental compliance, ensuring they address any violations discovered after the effective date.

Q: How has the seller's obligation to deliver a good title to the property been clarified?

The updated contract specifies that the seller only needs to convey the property free of material encumbrances or defects that would significantly affect its value.

Summary & Key Takeaways

• New checkboxes have been added to indicate whether the property includes additional items such as a manufactured home, off-site septic lot, boat slip, garage parking space, or storage unit.

• Exercise equipment or devices that are attached to the property will be transferred to the buyer at closing, clarifying discussions between agents and clients.

• Language has been added to encourage buyers to undertake investigations into governmental compliance, allowing them to address any violations discovered after the effective date.

• The seller's obligation to deliver a good title to the property has been clarified to include only material encumbrances that would significantly affect the property's value.