USA – NORTH CAROLINA Law and Practice Contributed by: John Livingston and Brittani Miller, Kilpatrick
Chowan, Currituck, Dare, Pasquotank, Perqui - mans and Washington Counties. 2.3 Effecting Lawful and Proper Transfer of Title A transfer of title to real estate occurs through the execution and delivery of a deed by the seller to the buyer. The deed, which must meet specif - ic legal requirements outlined by North Carolina law, serves as the legal instrument that transfers ownership of the property. To make the transfer effective against third parties and ensure public notice of the new ownership, the deed must be recorded in the county recorder’s office. Title insurance (both for owners and lenders) is Real estate due diligence often begins with a title search of the subject property to verify owner - ship, review documents affecting the property and identify any encumbrances, such as liens, easements or restrictions, that could affect the property. Additionally, surveys should be obtained to confirm the property’s boundary lines and identify potential disputes. Physical inspec - tions may be conducted to assess the condi - tion of the property, including structural integrity, environmental concerns and compliance with building codes. Buyers may also review zon - ing laws and land use regulations to ensure the property can be used for their intended purpose. Buyers of commercial property should also con - duct a Phase I Environmental Site Assessment. Additional diligence may be needed based on the proposed use of the property. 2.5 Typical Representations and Warranties common in real estate transactions. 2.4 Real Estate Due Diligence Typical seller representations and warranties include assurances regarding title to the prop -
erty, compliance with zoning and environmental regulations, and absence of liens or encum - brances. Buyers typically rely on performing their own due diligence, including inspections and environmental assessments, to verify the condition of the property. Remedies for misrep - resentation include termination of the contract and claims for damages. Seller representations and warranties typically survive closing for a lim - ited period, with common survival periods rang - ing from six to 12 months. It is also customary to include a cap on the seller’s liability for breaches. For residential transactions, a statutorily man - dated disclosure form is required prior to execut - ing an offer to purchase. The North Carolina Real Estate Commission’s form of disclosure is avail - able online (North Carolina Real Estate Commis - sion, Residential Property and Owners’ Associa - tion Disclosure Statement, 17 April 2025). 2.6 Important Areas of Law for Investors An investor should consider the following areas of law: • Contract law which governs purchase agree - ments, including contingencies, disclosure requirements, and provisions for resolving disputes. • Zoning and land use regulations which gov - ern whether the intended use of the property aligns with local ordinances and restrictions. • Environmental laws, such as the Coastal Area Management Act and wetlands regulations, which may impose additional requirements for properties in sensitive areas. • Taxation laws, including property taxes, trans - fer taxes and capital gains taxes, should be evaluated alongside potential exemptions or benefits, such as 1031 exchanges or Oppor - tunity Zone incentives.
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