§ 47E-5. Time for disclosure; cancellation of contract. - North Carolina Statutes

§47E‑5.  Time for disclosure; cancellation of contract.

(a)        The owner of realproperty subject to this Chapter shall deliver to the purchaser the disclosurestatement required by this Chapter no later than the time the purchaser makesan offer to purchase, exchange, or option the property, or exercises the optionto purchase the property pursuant to a lease with an option to purchase. Theresidential property disclosure statement may be included in the real estatecontract, in an addendum, or in a separate document.

(b)        If the disclosurestatement required by this Chapter is not delivered to the purchaser prior toor at the time the purchaser makes an offer, the purchaser may cancel anyresulting real estate contract. The purchaser's right to cancel shall expire ifnot exercised prior to the following, whichever occurs first:

(1)        The end of the thirdcalendar day following the purchaser's receipt of the disclosure statement;

(2)        The end of the thirdcalendar day following the date the contract was made;

(3)        Settlement oroccupancy by the purchaser in the case of a sale or exchange; or

(4)        Settlement in thecase of a purchase pursuant to a lease with option to purchase.

Any right of the purchaser tocancel the contract provided by this subsection is waived conclusively if notexercised in the manner required by this subsection.

In order to cancel a realestate contract when permitted by this section, the purchaser shall, within thetime required above, give written notice to the owner or the owner's agenteither by hand delivery or by depositing into the United States mail, postageprepaid, and properly addressed to the owner or the owner's agent. If thepurchaser cancels a real estate contract in compliance with this subsection,the cancellation shall be without penalty to the purchaser, and the purchasershall be entitled to a refund of any deposit the purchaser may have paid. Anyrights of the purchaser to cancel or terminate the contract for reasons otherthan those set forth in this subsection are not affected by this subsection. (1995,c. 476, s. 1; 1997‑472, s. 2.)