North Carolina General Statutes 47E-4.1. Required mineral and oil and gas rights disclosures
Terms Used In North Carolina General Statutes 47E-4.1
- Contract: A legal written agreement that becomes binding when signed.
- following: when used by way of reference to any section of a statute, shall be construed to mean the section next preceding or next following that in which such reference is made; unless when some other section is expressly designated in such reference. See North Carolina General Statutes 12-3
- Owner: means each person having a recorded present or future interest in real estate that is identified in a real estate contract subject to this Chapter; but shall not mean or include the trustee in a deed of trust, or the owner or holder of a mortgage, deed of trust, mechanic's or materialman's lien, or other lien or security interest in the real property, or the owner of any easement or license encumbering the real property. See North Carolina General Statutes 47E-3
- property: shall include all property, both real and personal. See North Carolina General Statutes 12-3
- Purchaser: means each person or entity named as "buyer" or "purchaser" in a real estate contract subject to this Chapter. See North Carolina General Statutes 47E-3
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Real property: means the lot or parcel, and the dwelling unit(s) thereon, described in a real estate contract subject to this Chapter. See North Carolina General Statutes 47E-3
(a) With regard to transfers described in N.C. Gen. Stat. § 47E-1 and N.C. Gen. Stat. § 47E-2(b), the owner of the real property shall furnish to a purchaser a mineral and oil and gas rights mandatory disclosure statement. The disclosure shall be conspicuous, shall be in boldface type, and shall be as follows:
MINERAL AND OIL AND GAS RIGHTS DISCLOSURE
Mineral rights and/or oil and gas rights can be severed from the title to real property by conveyance (deed) of the mineral rights and/or oil and gas rights from the owner or by reservation of the mineral rights and/or oil and gas rights by the owner. If mineral rights and/or oil and gas rights are or will be severed from the property, the owner of those rights may have the perpetual right to drill, mine, explore, and remove any of the subsurface mineral and/or oil or gas resources on or from the property either directly from the surface of the property or from a nearby location. With regard to the severance of mineral rights and/or oil and gas rights, Seller makes the following disclosures:
Yes No No Representation
___________ 1. Mineral rights were severed from ___ ___ ___
Buyer Initials the property by a previous owner.
Yes No
___________ 2. Seller has severed the mineral ___ ___
Buyer Initials rights from the property.
Yes No
___________ 3. Seller intends to sever the mineral ___ ___
Buyer Initials rights from the property prior to
transfer of title to Buyer.
Yes No No Representation
___________ 4. Oil and gas rights were severed from ___ ___ ___
Buyer Initials the property by a previous owner.
Yes No
___________ 5. Seller has severed the oil and gas ___ ___
Buyer Initials rights from the property.
Yes No
___________ 6. Seller intends to sever the oil and ___ ___
Buyer Initials gas rights from the property prior to
transfer of title to Buyer.
(b) The North Carolina Real Estate Commission shall develop and require the use of a mineral and oil and gas rights mandatory disclosure statement to comply with the requirements of this section. The disclosure statement shall specify that the transfers identified in N.C. Gen. Stat. § 47E-2(a) are exempt from this requirement but the transfers identified in N.C. Gen. Stat. § 47E-2(b) are not. The disclosure statement shall provide the owner with the option to indicate whether the owner has actual knowledge of the specified characteristics or conditions. The owner may make no representations only as to a previous severance of mineral rights and previous severance of oil and gas rights.
(c) The rights of the parties to a real estate contract as to the severance of minerals or the severance of oil and gas rights by the previous owner of the property and of which the owner had no actual knowledge are not affected by this Article unless the mineral and oil and gas rights mandatory disclosure statement states that the owner makes no representations as to the severance of mineral rights or the severance of oil and gas rights by the previous owner of the property. If the statement states that an owner makes no representations as to the severance of mineral rights or the severance of oil and gas rights by the previous owner of the property, then the owner has no duty to disclose the severance of mineral rights or the severance of oil and gas rights, as applicable, by a previous owner of the property, whether or not the owner should have known of any such severance. (2014-120, s. 49(a).)