Buyer Be Ware; On Seller Disclosures

What Is a Seller's Disclosure?

A seller disclosure is a real estate document that provides details about a property condition,which could affect a buyer’s decision to purchase,or which might negatively impact the property's value. It is legally required by law, but it's requirements can vary in different states.

A seller must indicate items which are not specific to the property itself but related to a person’s enjoyment of the property.Selling a home "as is" may speed up the homebuying process, but it won't always exempt  the seller from disclosure requirements.

The Seller’s Disclosure provides a clearer picture of the home and its history, plus it allows buyers to make a more educated decision on whether to purchase the home or not.Seller’s Disclosure statement can also protect the seller from being sued by the buyer after closing the sale.

A reliable disclosure form may contain the following:

i.)List of appliances that are included with the home.

ii.)List of specific issues the homeowner must check off if the home has them.

iii.)Questions about the property the seller must answer with “Yes,” “No” or “Unknown”

iv.)Space to provide further explanation of the issue and if it was fixed.

Types Of Seller Disclosures

1.)Property repair history

It is the seller's responsibility to provide accurate information related to cost of property repair and date.

2.)Damage and Hazards Systems.

If the home is at an increased risk of damage from a natural disaster or has known or potential environmental contamination,the seller may be required to disclose this information to the buyer.

3.)Death In The Home

Incase a tenant or a worker died in the property in a period not more than three years,the seller will by required by law to disclose to the buyer.

4.)Home Owners Association Governance

The seller is required to disclose if the property falls under the governance of a home owners association or condominium association to maximize the buyer's choices of making a decision.

5.)Neighborhood Nuisances

A nuisance is often a noise or odor from a source outside the property that could irritate occupants and make it uncomfortable to live in there.

6.)Liens On The Property

A lien on a property is ownership rights given to a lender should the property owner fail to repay their debt to the lender.The seller must always disclosure liens to the buyer.

7.)Property Line Disputes

This must be disclosed as they can cause issues with new homeowners and neighbors. If there is pending action against your property, potential buyers will need to know that the neighbor has a claim against the land.

8.) Missing Items

Incase the homebuyer don't realize until the move-in day of a missing thing they assumed would be there,the seller is required to answer the whereabouts of that particular item.

What  If The Seller Fails To Make A Disclosure?

As a buyer,you can cancel the sale and you be compensated by taking a legal action against the seller.

What Happens if I Lie on a Seller’s Disclosure?

As a seller,you risk being heavily fined, sued in court, or both.