In a property sale, property details go beyond just the basic amenities list and developer information. There are other particulars that need to be disclosed which are beneficial to both you as the seller and the buyer.
According to the Code of Ethics & Responsibilities for Real Estate Service Practitioners, a broker must “endeavor to present the full disclosure of pertinent and material facets on the subject property” especially in its advertisements. This is particularly important when the buyer is making the final decision to purchase the property.
Full disclosure can relieve stress for the buyer because it simplifies the decision making process; as well as for you as the seller since it lightens your legal liability. Proper communication can save both parties time in sealing the deal as well as the need to file lawsuits due to lack thereof.
So what are important details that need to be disclosed? Listed below are 5 of the must seller disclosures.
1. Death in the home
There are superstitious buyers and you may want to disclose to them any deaths that have happened recently or throughout the years within the property.
If deaths are due to natural causes or accidents that are completely unrelated to the property, they do not need to be disclosed unless asked by the buyer. However, if the nature of such deaths are due to accidents related to the condition of the property, suicides, murders, or anything that involves violent crimes that happened within the property, disclosure may be required.
Note: It is better for the buyer to know about it from you rather than from their neighbors or from outright experiencing paranormal activities inside the home.
2. Damages or defects in the property
It is important to disclose any damages or defects in the property that can make it inhabitable. This includes leaky roofs, foundation cracks, water damages, plumbing defects, and electrical defects among other things.
But likewise, it is also important to disclose any repairs that have been made in the property. This is to prepare them for any problems that may arise in the future from the repairs that have been made.
3. Natural and off-site hazards
It is vital to inform the buyer of natural hazards such as if the property is located in an earthquake zone, a flood-prone area, or has a surrounding area that is susceptible to wildfires. Aside from natural hazards, there are also off-site hazards that may affect the safety of the future occupants of the property or could impact the property itself such as toxic wastes or contaminants present within the vicinity.
Disclosure of these things will aid them in preparing for such hazards or in deciding whether they should purchase this property in the first place.
4. Neighborhood nuisances
A nuisance can be anything that can irritate the future occupants of the property. This can be as simple as noise from the neighbors or rowdy events that happen in the area every week, or as big as ongoing commercial and construction projects or odor from the landfill that is near the property.
You may opt to not disclose smaller nuisances unless asked but buyers must be informed about the bigger ones so that they will not regret purchasing the home.
5. Homeowners Associations and memberships
It is required to disclose whether there is a homeowners association within the neighborhood the property resides in. Associations usually have memberships for those that live in the neighborhood with monthly fees that they need to pay as well as rules and regulations that they need to abide by.
Bottom Line
As much as you want to successfully seal that deal, it is important to assist potential buyers in making an informed decision of purchasing the property. Not only does this save you from any legal liability, but it also contributes to your credibility as a seller. If you’ve created a good and trustworthy first impression with your buyer, it is best not to betray that.
Sources:
Gassett, B. (2021, March 19). Real Estate Disclosure: What Do You Disclose When Selling a House. Retrieved June 11, 2021, from https://www.maxrealestateexposure.com/what-disclose-selling-house/
Investopedia. (2021, June 10). Buying a Home: 8 Disclosures Sellers Must Make. Retrieved June 11, 2021, from https://www.investopedia.com/articles/personal-finance/061214/real-estate-flipping-8-disclosures-you-must-make.asp