As a seller, you should be aware that both state and federal
law takes a strict approach to the information you must tell buyers what you
know about the condition of your home. This is particularly important for details
that aren't obvious or visible to a potential buyer. After all, a buyer isn't
able to open up the walls or look under the house. A buyer must rely on getting
accurate information from you, the seller, about the operating condition of
your home's systems and appliances.
In order to comply with the law, when you go to sell your home your real estate agent will give you a federally-required and possibly state-required disclosure form, known as a Condition Report, Property Condition Disclosure, or Real Estate Disclosure Statement. On this form, you have to disclose the non-obvious details which you're aware of: for example, if you know that your home has lead paint, asbestos, radon, or other toxic products, you must mention this on the form.
You are not required to go out and do tests for the presence of toxic substances in order to fill out the forms. However, you must disclose them if you're aware they're present, and the buyer's lender may require you to supply proof of testing or pay for remedying any problems you did disclose. If there was water or fire damage, you may have to pay to fix it.
All questions on the form must be answered as truthfully as possible. Your real estate agent can't answer them for you -- you must fill out the form yourself, though your agent is allowed to help you understand the form. Of course, if in doubt, it's better to disclose too much information rather than risk not disclosing enough.
Yes, the form does let you check an "I don't know" box if you genuinely don't know about the condition of some item. However, if you claim not to know about the condition of something you use regularly, the buyer may get suspicious. It's hard to believe the homeowner wouldn't know whether the sinks and bathtubs are in good shape.
In case you're concerned about this process, hiring a licensed professional home inspector is the best way to be confident about your home's condition. (Ask your real estate agent for recommendations.) In exchange for a few hundred dollars, the inspector will be able to tell you if your home is ready to go on the market or if you need to fix a particular problem.
If you do fix a problem that you subsequently disclose to the buyer, make sure you provide them with copies of invoices, receipts, and work orders to demonstrate the work was done professionally. If you didn't fix the problem, the buyer will probably ask you to arrange a repair, or the buyer may offer less for your house.
Incidentally, this is why it's important to get your house inspected and repaired before you put it on the market. The more problems left unrepaired, the greater the buyer will discount his or her offer if he or she even decides to make one. Homes in good condition sell best.
However, you don't need to fear the seller's disclosure. It's designed to do just one thing -- protect both you as well as your real estate agent as long as you've disclosed the true condition of your property. The last thing you want is for the buyer to have room for complaints or litigation after the closing is complete.
If you want an idea of what questions a disclosure will ask you, you can find disclosure forms at FindLegalForms.com.
Again, the disclosure is all about making the deal, not killing it.
In order to comply with the law, when you go to sell your home your real estate agent will give you a federally-required and possibly state-required disclosure form, known as a Condition Report, Property Condition Disclosure, or Real Estate Disclosure Statement. On this form, you have to disclose the non-obvious details which you're aware of: for example, if you know that your home has lead paint, asbestos, radon, or other toxic products, you must mention this on the form.
You are not required to go out and do tests for the presence of toxic substances in order to fill out the forms. However, you must disclose them if you're aware they're present, and the buyer's lender may require you to supply proof of testing or pay for remedying any problems you did disclose. If there was water or fire damage, you may have to pay to fix it.
All questions on the form must be answered as truthfully as possible. Your real estate agent can't answer them for you -- you must fill out the form yourself, though your agent is allowed to help you understand the form. Of course, if in doubt, it's better to disclose too much information rather than risk not disclosing enough.
Yes, the form does let you check an "I don't know" box if you genuinely don't know about the condition of some item. However, if you claim not to know about the condition of something you use regularly, the buyer may get suspicious. It's hard to believe the homeowner wouldn't know whether the sinks and bathtubs are in good shape.
In case you're concerned about this process, hiring a licensed professional home inspector is the best way to be confident about your home's condition. (Ask your real estate agent for recommendations.) In exchange for a few hundred dollars, the inspector will be able to tell you if your home is ready to go on the market or if you need to fix a particular problem.
If you do fix a problem that you subsequently disclose to the buyer, make sure you provide them with copies of invoices, receipts, and work orders to demonstrate the work was done professionally. If you didn't fix the problem, the buyer will probably ask you to arrange a repair, or the buyer may offer less for your house.
Incidentally, this is why it's important to get your house inspected and repaired before you put it on the market. The more problems left unrepaired, the greater the buyer will discount his or her offer if he or she even decides to make one. Homes in good condition sell best.
However, you don't need to fear the seller's disclosure. It's designed to do just one thing -- protect both you as well as your real estate agent as long as you've disclosed the true condition of your property. The last thing you want is for the buyer to have room for complaints or litigation after the closing is complete.
If you want an idea of what questions a disclosure will ask you, you can find disclosure forms at FindLegalForms.com.
Again, the disclosure is all about making the deal, not killing it.
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