Realtor® Magazine’s definition of disclosures is “federal, state, county, and local requirements of disclosure that the seller provides, and the buyer acknowledges.”  In most states, this means that a seller must let a buyer know about known problems with the property they are selling.  Disclosing issues with a house is important for both buyer and seller. Understand more about property disclosures in this guide: 

 

Disclosures and the Seller 

  • Every prospective property seller will receive a disclosures form from their listing agent.  This form should be filled out truthfully and to the best of the seller’s knowledge. 
     

  • Most states want these items disclosed to the buyer:  lead paint or asbestos, previous repairs or additions, mold or water damage, pest issues, drainage problems, foundation cracks, problems with HVAC and other appliances, and roof condition/age. 
     

  • The listing agent will be aware of all government disclosure requirements--federal, state, and local.  Transparency from the seller is a must at this point of the property sale. 
     

  • “Better safe than sorry,” should be the homeowner’s motto when it comes to disclosures.  For instance, if there is a possibility that mold is an issue under the house, an inspector should have a look. 
     

  • Disclose minor things that you have learned to live with.  Items a seller considers small--such as a rattling window on a windy day, or a repair made many years past--can be big things to the buyer. 

  • The disclosure should be ready before the seller accepts an offer--for their protection. 

 

What the Buyer Needs to Know 

  • Once a potential buyer receives the disclosure statement, they should read it over carefully and without distraction. Any questions should be marked or written down and questions presented before the disclosure form is signed. 
     

  • The added expense of having a home inspection is vital to this part of the sale.  When the buyer meets the inspector, the disclosure form should be in hand so each item can be checked out thoroughly. 
     

  • Check local government building permit and zoning information to make sure any additions were performed legally by licensed people. 
     

  • If negotiations about any disclosure’s issues break down, it may be best for the buyer to walk away from the sale. 
     

  • In the end, doing due diligence is the best way for a buyer to find problems that will be a major issue after the sale. 
     

Disclosures should be a seller’s protection plan, and smart sellers will be completely honest, and even disclose more than necessary.  Sellers should make sure that their state laws ask them to disclose things like traffic noise, undesirable neighbors, or even paranormal activity!  Choosing a Realtor® with experience will help sellers through the disclosures process so that buyers will have full confidence in the property they are purchasing, which makes for a quick and smooth sale! 

 

Courtesy of Chester County PA Realtor Scott Darling. 

 

Photo credit: realtor.com