06/29/2026
MONDAY LEGAL QUICK TIP:
Due to the influx of material fact disputes recently, we wanted to share with you “material facts” which frequently create liability issues for North Carolina brokers if not disclosed. Remember, any fact that could affect a reasonable person’s decision to buy, sell, or lease property is considered a material fact and must be disclosed.
🔍 Restrictive Covenants. Restrictive covenants may limit how a property can be used, including restrictions on rentals, short-term rentals, pets, parking, accessory structures, fencing, home businesses, architectural modifications, and future development, and therefore may materially affect a buyer's intended use of the property.
💡 NCREC Guidance: If a broker becomes aware that recorded restrictive covenants may materially affect a buyer's intended use of the property, that information should be disclosed. While brokers are not expected to provide legal interpretations of restrictive covenants, they should recognize when restrictions may be material and recommend that buyers review the recorded documents and seek legal advice when appropriate.
✅ Practice Tip:
· Request from Seller copies of all recorded restrictive covenants, declarations, amendments, and architectural guidelines as early as possible.
· Ask buyers how they intend to use the property (e.g., rental property, home office, detached garage, pool, fence, or accessory dwelling unit).
· Encourage buyers to review the governing documents before the end of any due diligence period.
· Recommend consultation with a North Carolina real estate attorney whenever questions arise regarding the interpretation or enforceability of restrictive covenants.