A Seller’s Disclosure is a legal document that requires sellers to provide previously undisclosed details about the property’s condition that prospective buyers may find unfavorable. These disclosures can include known deficiencies in the home, zoning and building code violations, or other pertinent details. Understanding what a Seller’s Disclosure is, why it’s essential, and how to complete one correctly will help you make a more informed purchasing decision. In the event of a lawsuit following the sale of real estate, it is commonplace for the seller to be held liable for any misstatements or omissions on their disclosure form that might have misled the buyer about any property conditions.
1. Why is a seller’s disclosure necessary?
A seller’s disclosure is a legal document protecting both the seller and the buyer. Potential buyers are often in a rush during the home shopping season and may not have the time to research a potential home’s condition thoroughly. This is when sellers’ disclosures can help buyers determine if there are any defects in the property that would negatively impact the buyer’s decision not to buy. It also safeguards the seller from potential liability from the seller’s failure to disclose such information. A seller’s disclosure helps both parties throughout the entire home-buying process. It gives the buyer a better idea of what they are getting into and protects the new homeowner if there is something wrong with the property after they bought it. Proper disclosures not only provide you with details on what to expect in your new house but also allows you to make an educated decision. Dissatisfaction is no stranger to home buyers, and sellers’ disclosures may help prevent that by providing accurate details on what you are getting into before signing on the dotted line.
2. When should a seller provide the disclosure?
A seller’s disclosure should be provided at the time of sale, not before or after. A seller’s exposure can be made on paper or electronically in a database. It is up to the state or local jurisdiction to specify the format in which the disclosure must be present. That said, a seller’s disclosures should contain all details about the property and be easy for buyers to understand.
3. How a seller’s disclosure can impact a home sale
If a seller is not willing or able to disclose specific details about the property, it can negatively impact the sale. Buyers should get a seller’s disclosure when buying a home, whether they are buying their first or 10th home. If the seller refuses to give you a seller’s disclosure, you should feel free to bring this up in negotiations with the seller. You may also want to “walk away” from the sale if you think that there are troubling aspects of the property that the seller has not revealed.
There are several disclosures, but not all will be mandatory in your state. Work with Megg Homes to understand your situation better, and keep your eyes open when viewing the property. Most problems can be spotted early on and corrected before they get out of hand.