Required Disclosures When Selling Real Estate..
What you disclose to home buyers about your property.
(Note: House To Home Inspections In No Way Enforces Any Disclosure Statements)
Eventually, your buyers are going to conduct a home inspection. During that home inspection they will be very interested in confirming any disclosure statements that have been prepared by you. Home buyers will not only be confirming disclosure statements but also, other not so easily apparent problems at the time of the inspection. This is why they hire a professional home inspector. Home Inspectors not only inspect for defects and problems but also in the minds of home buyers, assure confidence in whom they are dealing with. This works both ways between the buyer and seller. Home buyers know the advantages of using a professional home inspector to their advantage so we are going to explain the advantages to home sellers (below).
When selling your house, you may be obligated to disclose problems and defects that would affect the property's financial value or desirability. In most states, it is illegal to fraudulently conceal major defects in your home and property such as a basement that floods in heavy rains or a heating system that quits below 40 degrees. States are increasingly requiring home sellers to take a proactive role by making a written disclosure on the condition of the property.
What You Must Disclose
Your real estate representative or real estate lawyer usually covers disclosure rules for your particular state. The information given below is not an attempt to give any legal advice but rather to have you more prepared of the events that are about to transpire.
Generally, you are responsible for disclosing only the information within your own knowledge. You don't usually need or want to hire a home inspector to turn up defects or problems you never had an inkling existed. However, some laws identify certain problems that are your sole responsibility to search for, whether you see signs of a problem or not. In these cases, or where you could have seen a particular defect or problem but turned a blind eye, you could ultimately end up in the courts, compensating the home buyer for the costs of your failure to speak up sooner. By conducting a pre listing-disclosure of property home inspection, you are not only protecting your financial interests but, also have a good overall working knowledge of what repairs to and not to expect. The buyer could hire a novice inspector who reports on a component that is not really defective. By comparing inspection reports, you will be able to call this error to the home buyer’s attention. This could save you the sale of your house at the time that you want it sold.
While it's not usually required, some home sellers hire a inspector to inspect the property before the purchase (see buyers section in the site). The results will help you determine what needs repair or replacement and will help assist with preparing any required property disclosures. A home inspection report is also very useful in pricing your house and negotiating with prospective home buyers.
If you have even the slightest question about whether or not to disclose something to potential home buyers, avoid the potential for liability and tell all. Full property disclosure of any defect will increase the home buyer's confidence that you're dealing very fairly. It will also protect you from potential legal problems later, such as home buyers who want out of the deal or who try and claim damages suffered because you carelessly or intentionally withheld pertinent information about your home. By using House To Home Inspections to conduct a Pre-listing/disclosure inspection, you are essentially passing your disclosure liability to us. This is why we request a hard or rough copy of your disclosures before we perform your home inspection.
And remember, just because you disclose a problem doesn't mean you have to repair or correct it. The disclosed item can become part of the negotiation between you and your home buyer. House To Home Inspections does not enforce any disclosure statements but we will ask you for a copy or a rough copy of the disclosure statement that you plan to file to aid us during our inspection.
Sellers Must Disclose Lead-Based Paint and Hazards |
If you are selling a house built before 1978, you must comply with a federal law called the Residential Lead-Based Paint Hazard Reduction Act of 1992 (U.S. Code § 4852d), also known as Title X. You must:
- disclose all known lead-based paint and hazards in the home .
- give home buyers a pamphlet prepared by the U.S. Environmental Protection Agency (EPA) titled Protect Your Family from Lead in Your Home.
- include certain warning language in the contract as well as signed statements from all parties verifying that all requirements were completed.
- keep signed acknowledgements for up to three years as proof of compliance, and
- give buyers a ten day opportunity to test the house for lead.
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How You Must Disclose
Most states' laws mandate that property disclosures be on special forms the seller must sign and date. Be sure the home buyer acknowledges receipt of the property disclosures by signing and dating the forms as well. If your particular state does not require a specific property disclosure form, be sure the home buyer otherwise affirms receipt of your property disclosures. In writing!
Check with your broker or attorney or your state department of real estate for property disclosures required in your state. Also, check with your city-planning department for information on local ordinances and property disclosures that affect your home sale. Finally, be aware that real estate brokers are increasingly requiring that home sellers complete property disclosure forms, regardless of whether or not it's legally required.
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