Disclosure laws are put in place to protect the buyer from unknowingly purchasing defective property. Not disclosing certain information about the property can jeopardize the sale, or worse, invite a lawsuit.
This has become more of an issue lately as some sellers are tempted to gloss over deficiencies in the home they are selling in order to try to get a higher sales price.
The main items that need to be disclosed are any defects with the home. This includes, but is not limited to, plumbing problems, water leaks, cracks in the foundation, insect infestations and toxic materials in the home — such as lead, asbestos, carbon monoxide or mold.
Be sure to fully disclose anything that may be pertinent to the buyer before purchase. Some disclosure laws include reporting issues with neighbors and whether the home has a criminal or notorious past.
If you are unsure about some information regarding your real estate, one option would be to state that you do not know that specific information. Remember though, if you knowingly withhold information, it may cause the sale to fall through or could be used against you in a lawsuit.
Sellers can also have their home inspected prior to placing the property on the market to prevent any surprises of unknown problems with the home. This way, defects can be fixed before listing the property, and the disclosure form can state the problem has been fixed. Buyers will almost surely want an inspection prior to closing, and a pre-inspection may suffice.
Disclosing information does not mean the seller needs to fix the problem. Any disclosed problems with the real estate can become a negotiation point. Remember, the most important thing is to be honest about any known issues with the property.
Real estate disclosure laws may be different depending on the state in which you live. The best way to know what you need to disclose in your area is to check with your trusted real estate agent or property attorney and discuss any potential property issues with them before you fill out the seller disclosure form.
Before you sell, verify the disclosure requirements that apply to your property and complete the proper seller disclosure form carefully. If you are unsure whether a condition, repair history, or other issue should be disclosed, it is wise to ask a real estate agent or attorney before submitting the form. Taking the time to be accurate and thorough can help reduce delays, disputes, and legal risk during the sale.
Sellers generally need to disclose known defects or conditions that could affect the property’s value or safety. Common examples include plumbing problems, water leaks, foundation cracks, insect infestations, and toxic materials such as lead, asbestos, carbon monoxide, or mold.
Failing to disclose known problems can jeopardize the sale and may lead to legal disputes or a lawsuit. If a seller knowingly withholds important information, that omission can be used against them later.
Selling a home as-is does not remove the obligation to disclose known issues. Sellers may choose not to make repairs, but they still should be honest about defects they know about.
A seller disclosure statement is the form used to report known facts or defects about a property before the sale closes. It helps buyers understand the condition of the home and any issues that may be important to their decision.
If specific information is truly unknown, a seller may state that they do not know. The key difference is honesty: not knowing is different from knowingly withholding information.
A pre-listing inspection can help uncover problems before the home goes on the market. That gives the seller a chance to make repairs in advance or disclose the issue clearly, which may reduce surprises during the buyer’s inspection.
No. Disclosure does not automatically require the seller to fix the problem. Disclosed issues often become part of the negotiation between the buyer and seller.
Yes. Real estate disclosure requirements can differ depending on the state. Sellers should confirm the rules that apply in their area with a real estate agent or property attorney before completing the disclosure form.
Known toxic or hazardous materials should generally be disclosed. Examples mentioned include lead, asbestos, carbon monoxide, and mold because they may affect health, safety, or property value.
In some cases, yes. Certain disclosure laws may also require reporting issues involving neighbors or whether the home has a criminal or notorious past, depending on the rules in that state.
Our loan officers are ready and waiting to help you apply for your home loan.
Learn more about the people behind Sammamish Mortgage
Whether you’re buying a home or ready to refinance, our professionals can help.
Mortgage Support — 24/7
No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.
Adjust the parameters based on what you want to track
