Key Takeaways
- NC requires disclosure of known material facts including environmental hazards affecting property
- Synthetic stucco (EIFS) and polybutylene pipes are common NC disclosure issues
- NC DEQ (Department of Environmental Quality) regulates environmental matters
- Coastal areas have additional regulations under CAMA (Coastal Area Management Act)
- On-site wastewater (septic) systems require permits and inspections in NC
Last updated: January 2026
Environmental Issues in North Carolina Real Estate
Environmental considerations can significantly affect real estate transactions in North Carolina.
Common NC Environmental and Material Issues
Synthetic Stucco (EIFS)
Exterior Insulation and Finish System (EIFS) is common in NC:
| Issue | Concern |
|---|---|
| Moisture intrusion | Water can become trapped behind finish |
| Damage | May cause hidden rot and mold |
| Disclosure | Must disclose if known |
| Inspection | Specialized EIFS inspection recommended |
Polybutylene Pipes
Polybutylene (PB) plumbing was common in NC homes (1978-1995):
| Issue | Concern |
|---|---|
| Failure | Pipes deteriorate and leak |
| Class action | Major settlements against manufacturers |
| Disclosure | Should be disclosed if present |
| Resolution | Often replaced with copper or PEX |
Other Common Issues
| Issue | Description |
|---|---|
| Radon | Natural radioactive gas |
| Mold | Moisture-related growth |
| Lead paint | Pre-1978 homes (federal disclosure) |
| Asbestos | Older buildings |
| Underground tanks | Require disclosure |
Septic Systems
On-site wastewater (septic) systems in NC:
Permit Requirements
| Requirement | Detail |
|---|---|
| Installation permit | Required before construction |
| Improvement permit | Required for building permit |
| Inspections | County health department |
| Disclosure | System type must be disclosed |
North Carolina Environmental Agencies
NC Department of Environmental Quality (DEQ)
The NC DEQ regulates:
- Air quality
- Water quality
- Land and waste management
- Coastal management
Coastal Area Management Act (CAMA)
CAMA applies to the 20 coastal counties:
| Regulation | Description |
|---|---|
| Permit required | For development in AECs |
| Areas of Environmental Concern | Protected coastal areas |
| Setbacks | Required from water and dunes |
| Enforcement | NC Coastal Resources Commission |
Areas of Environmental Concern (AECs)
| Type | Examples |
|---|---|
| Estuarine system | Estuarine waters, marshes |
| Ocean hazard | Beaches, frontal dunes |
| Public water supplies | Watershed areas |
| Natural and cultural resources | Historic sites, natural areas |
Flood Zones
FEMA Flood Maps
| Zone | Description |
|---|---|
| Zone A, AE | High-risk flood areas |
| Zone V, VE | High-risk coastal areas |
| Zone X | Moderate to low risk |
Flood Insurance
- Required for federally-related loans in flood zones
- National Flood Insurance Program (NFIP)
- May significantly affect affordability
Environmental Disclosure Duties
Broker's Duty
NC brokers must disclose known material facts including:
- Known environmental contamination
- Water quality issues
- Flood history
- Previous damage from environmental issues
Seller's Duty
On the NC disclosure form, sellers address:
- Water supply source and quality
- Septic system status
- Known hazardous materials
- Flood damage history
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Test Your Knowledge
Which agency regulates environmental matters in North Carolina?
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Test Your Knowledge
What does CAMA regulate in North Carolina?
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Test Your Knowledge
Which of the following is a common material defect issue in North Carolina homes?
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