The real estate industry thrives on trust, professionalism, and transparency. That’s why recent guidance from the North Carolina Real Estate Commission (NCREC) serves as a timely reminder for brokers and agents alike: if you have a question about whether something is a material fact—disclose it. Early. Often. And ideally, in writing.

Let’s walk through what this means in practice, and how one real-life example highlights the risks of getting it wrong.

The Radon Case: What Happened?

In a recent case reviewed by the NCREC, a seller went under contract with a buyer who conducted a radon test. The results showed radon levels significantly higher than the EPA’s recommended safe limit of 4.0 pCi/L. During the due diligence period, the buyer decided to terminate the contract due to this issue.

The listing broker then advised the seller to install a radon mitigation system. The seller agreed—but did not install it before new potential buyers began touring the property. Worse, the broker failed to disclose the known radon issue to these other prospective buyers.

This was more than an oversight. It was a violation of a broker’s duty to disclose material facts. The fact that the seller had plans to fix the issue did not absolve the broker from the responsibility to disclose it promptly and fully.

You can read more about Material Facts and the Radon Case HERE.

Understanding Material Facts

According to the NCREC, a material fact is any piece of information that could reasonably influence a buyer’s decision. This includes structural defects, hazardous environmental conditions, and even prior test results—whether or not the issue is being addressed.

Sellers and brokers have different obligations when it comes to disclosure. The Residential Property and Owners’ Association Disclosure Statement (RPOADS) instructs sellers to update or correct their disclosure if something changes—such as a leaking roof or, in this case, a high radon level. However, brokers are held to a higher standard. They must disclose all material facts, regardless of the seller’s actions or intentions.

Once the broker became aware of the radon issue, it was his legal and ethical duty to inform all potential buyers, even if the mitigation system was pending. Failing to do so led to disciplinary action from the Commission.

Disclosure Is Protection

It’s important to note that disclosure is not just a best practice—it’s protection. Putting disclosures in writing is strongly encouraged. It creates a paper trail and reinforces your professionalism and commitment to transparency.

Even after a system like radon mitigation is installed, it still qualifies as a material fact. The presence of a system that mitigates a health hazard affects how buyers perceive the home and may impact their decision. It also introduces new maintenance responsibilities. All of this must be communicated clearly.

The Danger of Broken Promises

The NCREC bulletin also touched on another critical point: promises made by brokers must be kept. Simple as that.

Whether you’ve promised to send over documents, schedule a service call, or follow up on a negotiation point—clients are depending on your word. Failing to follow through not only damages your credibility but could also be interpreted as misleading or negligent.

The takeaway is straightforward: only make promises you fully intend to keep, and be prompt in delivering on them.

Final Thoughts

For brokers and agents navigating the Triangle’s fast-moving market, compliance isn’t optional—it’s essential. The difference between a seamless transaction and a regulatory misstep often lies in clear, consistent communication.

At The Coley Group, we believe that integrity lays the foundation for lasting relationships and better outcomes for everyone involved. We encourage all real estate professionals—whether you’re representing a buyer, advocating for a seller, or managing listings—to treat disclosure not as a hurdle, but as a cornerstone of ethical practice.

To support your efforts, we recommend reviewing the official guidelines provided by the North Carolina Real Estate Commission (NCREC). It’s a comprehensive, trusted source for up-to-date rules, educational materials, and licensing information that every real estate professional in North Carolina should know.

If you’re navigating a complex transaction or simply want a team that prioritizes transparency at every step, reach out to us. We’re here to guide you through every detail—ethically, confidently, and the right way.

Let’s unlock the best of Raleigh, together. We can’t wait to partner with you!