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States are cracking down on sellers' obligation to disclose known material facts about properties for sale - especially conditions not readily apparent, such as a cracked foundation. A material fact is anything that could affect the sale price or influence a buyer's decision to purchase a home.
The major cause of post-sale disputes and lawsuits involve defects and disclosure. Most disputes can be avoided if proper disclosures are made.
Learn the Law
The statutes governing seller disclosure obligations vary:
- State laws
Most states require some form of seller disclosure. The form of disclosure also varies: Some states require a seller to complete a questionnaire about their property's condition; in other states, disclosures can be made verbally. In some states, seller disclosures are voluntary. The only sellers excluded from disclosure laws are banks and mortgage companies with foreclosure properties.
- Federal and local laws
In addition to state mandates, some local and federal laws require sellers to make specific disclosures. Federal law, for example, requires sellers of homes built before 1978 to disclose any known lead hazards.
- Real estate company requirements
Some major real estate companies require prospective sellers to complete a disclosure form before listing their property.
http://houseandhome.msn.com/selling/guides/disclosure.aspx |
