NCRECCASESTUDY#2: But He Has A Boat

Source Credits: North Carolina Real Estate Commission (NCREC)

SUBJECT TOPIC: Material Facts (August 2024)

ISSUE: Did the broker comply with N.C.G.S. §93A-6(a)(1)? 

FACTS: A customer, who was relocating, contacted a broker for help in finding a home in North Carolina. After explaining NC agency and the Working With Real Estate Agents Disclosure, the customer entered into an exclusive buyer agency agreement with the broker. 

From the onset of the relationship, the client shared with their buyer agent how excited they were to bring their new pontoon boat down to their new home.  After viewing several properties, the client was ready to make an offer on a home in a newer subdivision. The property had a large driveway with plenty of room for their boat.  The client also noticed that the neighboring property had a boat as well.

The buyer’s offer was accepted. Ther seller and buyer went under contract, and the transaction concluded successfully.  The client moved into the property without any issues.  However, a few months later, the client started getting notices with violations and fines from the Homeowner’s Association. Upon speaking with the HOA, the buyer was informed that the subdivision had restrictive covenants that did not allow recreational vehicles to be parked in the driveway of properties. 

While the neighbor had a boat parked in their driveway, they were doing so in violation of the covenants and being fined as well.