Tag Archives: sellers disclosure

Importance of a Sellers Disclosure

13 Aug

Seller Disclosure: What Is It and Why It’s Important

What to tell potential buyers about the home you want to sell


By Wendy Dickstein
Seller disclosure is a statement of material facts regarding the property for sale. The seller, not the agent, signs the disclosure forms. What needs to be contained in these disclosure forms varies from state to state. Seller disclosures prevent buyers from bringing lawsuits against the seller, in the event that defects that were not disclosed before the sale are discovered by the buyer after the property is sold. It is therefore in the seller’s interest to let the buyer know in advance if there are any problems with the house that need to be taken care of before the sale.
An example of such a problem is lead paint, which was used in homes before its risk to health was known. Any house built before 1978 must be checked for lead paint and a disclosure form to that end must be signed by the seller. This is a federal requirement.
External Disclosures
Some states require sellers to make what are called external disclosures about the property. External disclosures relate to issues such as zoning changes that might be imminent; whether the property constitutes a fire hazard or is on a fault line for a possible earthquake; or is in a flood zone. Other external disclosures relate to whether the house is in an area that has substantial noise, air or ground pollution which might not be immediately apparent to the buyer before he buys the property and moves in. Sellers often disclose whether someone died on the property, and in the state of California this disclosure is a requirement.
Disclosing Home Repairs
A seller may want to disclose the fact that major repairs were done to the plumbing, the roof, the electrical system or other infrastructure of the house and grounds. The seller does not have to guarantee that everything is now perfect, but often potential buyers are reassured to hear that the previous owners have taken care of these repairs, and this will be a plus for them in wanting to purchase the house.
Disclosures about the Basement and the Foundation
Houses with basements often have problems with water seeping in from the ground. The stability of a home’s foundation is another crucial matter that needs to be disclosed before the house is sold. Making a disclosure about the actual situation in the basement and the foundation will save both the seller and the buyer trouble later on. The seller will have peace of mind knowing that there will be no risk of a lawsuit, and the buyer will know in advance whether he needs to repair the basement and stabilize the foundation before he moves in or whether he can rely on the seller’s representation concerning the state of the property. Seller disclosures therefore represent a win-win situation for both parties to the transaction.
Article provided by www.Realtor.com
Keller Williams VIllage Square Realty
257 E. Ridgewood  Ridgewood, Nj 07481