Real Estate Disclosures:
What You Need to Know
Disclosing the Secrets to Disclosure
Sellers are required to share some information about their homes when you buy one. When touring a house, you may have noticed some details that you might have missed without a seller’s disclosure. Even if you cannot see the problems in a house, you should know if there are any.
It can be a huge surprise when you purchase a home and find out that it needs major repairs or renovations. You might think that the seller would have to disclose any big issues with the property. However, it is possible for you to inherit a major home issue without ever knowing about it and without a seller’s disclosure. You should review real estate disclosures carefully to make sure they include everything you need to know.
In Real Estate, What Is A Disclosure?
In a real estate disclosure, a seller explains the condition of their house. Buyers should understand what the seller knows about the home through the seller’s disclosure. In the disclosure form, the current sellers would disclose that the roof was replaced while they lived in the house.
Disclosures are intended to notify buyers of what they can potentially inherit in a home, but they also serve another function: protecting the seller from any legal actions in the future. The buyer cannot sue the seller if something goes wrong after taking over a home knowing what they saw in the disclosure.
In a real estate disclosure, what must a seller disclose?
There can be differences between sellers’ disclosures in different parts of the country. Local and state laws differ. The disclosure information you have may differ from what is listed here.
An average property disclosure includes the following information:
Home structure and appliances:
The structure details such as ceilings, foundations, walls, and windows will be visible. In addition, you’ll be informed about any damage done to major appliances, such as the heating and cooling system, electrical units, and sprinkler system, if necessary.
Pests and termites:
A seller should notify the buyer that the home has been attacked by wood-destroying insects, including termites, fungi, and other pests.
Flooding:
Water intrusion, drainage, and flooding problems are things that you must know as a buyer. As well as finding out if the property is in a flood hazard area, you’ll learn whether flood insurance is necessary (not every property requires it).
Plumbing:
You should consider and look into the source of drinking water in your potential future home (such as public, private, or well). If the owner has owned the property for a long time, find out if there have been any defects in the plumbing system or water system.
The roof:
If the seller knows of any roof-related issues, including leaks, repairs, replacements, or anything else, he or she should disclose them. A roof’s age must also be disclosed by the owner.
Sinkholes:
There’s a possibility that a home you’re considering has problems with settlement or sinkholes. Sometimes it’s not the house you want to purchase, but the homes nearby.
Information for homeowners:
When a seller discloses information about homeowner associations or similar requirements, the buyer has the right to ask about them. Furthermore, you’ll find out if there are any concerns regarding access roads or boundaries. A property you’re considering buying may share walls, fences, or other features with an adjacent property, for instance.
Concerns about the environment:
A disclosure about lead-based paint must be provided to prospective buyers if the home was built before 1978. Among other things, you will learn about asbestos, mold, defective drywall, contaminated soil, and other environmental hazards.
The government claims:
Any claims raised by municipal or county assessments as well as administrative claims must be disclosed by the seller. A buyer has a right to know about any litigation or claims that the seller is aware of. Whether the permit was pulled by the seller or the previous owner, the seller must share it with the buyer.
Is there a way to find out more about home disclosures?
There may be a need to visit the city office since disclosures vary by state, county, and jurisdiction. For your potential home, you will be able to find out about records, permits, and building inspections at your city’s building services department.
It is also possible to get the home disclosure from your agent or lawyer. Once both parties agree to an offer to purchase the home, the real estate disclosure should be available to you from the seller’s agent or attorney.
Disclosures are different from home inspections. Disclosures are forms that sellers provide to buyers describing their knowledge of their home and possible issues. The home inspection is performed by a licensed professional who inspects every aspect of the house. Home disclosures cover those areas, but issues may be found that the seller didn’t disclose or didn’t know about. A buyer has the right to sue a seller who intentionally hides defects in a property.
Buyers may need to address issues discovered during a home inspection before closing on a house. In order to obtain home insurance, the seller may need to replace outdated electrical panels. Depending on the condition of the structure, the seller may have to make repairs or updates before closing on a home. The closing date might be pushed back as a result. In spite of this, there is a possibility that you will not be able to buy a home without home insurance. Having the right disclosures in place coupled with a home inspection can be the deciding factor when it comes to buying the right house. Use our tools to get started if you want to sell your home and make sure you have all the necessary paperwork in place. It’s important to prepare for the sale of your home if you’re considering selling your house yourself. These forms are excellent starting points, including seller disclosures and lead paint disclosures.
