[Compliance with Laws and Regulations – NC Subdivision Streets Disclosure Law] Under the provisions of the North Carolina Subdivision Streets…

The North Carolina Subdivision Streets Disclosure Law, codified in N.C.G.S. § 136-102.6, mandates that a developer provide a prospective purchaser with a written disclosure statement before entering into a contract. The core requirement of this law is to inform the buyer about the status of the streets within the subdivision. The statement must explicitly declare whether the streets are public, meaning they will be maintained by a government entity, or private, meaning the maintenance responsibility falls upon the property owners. This disclosure is crucial for ensuring buyers understand their future obligations regarding street upkeep.

B. The law requires disclosure of the responsibility for maintenance costs on private streets, but not the anticipated cost of future assessments.

C. This is incorrect; the law's intent is to clarify that for private streets, the property owners (typically through an HOA) are responsible for maintenance, not the developer.

D. Disclosure of flood risk is a material fact required under general real estate law and the Residential Property Disclosure Act, not the specific Subdivision Streets Disclosure Law.

1. North Carolina General Statutes, Chapter 136, Article 2A, § 136-102.6(b). This statute directly states, "The developer shall have a disclosure statement prepared, signed by the developer or the developer's agent. The disclosure statement shall fully and completely disclose the status (whether public or private) of the street upon which the house or lot fronts."

2. Ducker, R. D. (2008). A Legal Guide to Subdividing Property in North Carolina. UNC School of Government. On page 11, under the section "Street-Disclosure Statements," the guide clarifies the developer's obligation: "The developer must disclose in writing whether the streets in the subdivision are intended for public or private use and who is responsible for maintaining them." This directly supports that the primary disclosure is the public or private status.