What You Need to Disclose When Selling
Disclosure documents tell a buyer a lot about a home. If you choose not to disclose certain things, this can cause major issues later on.
What should you include, and not include, in your seller’s disclosure?
The easy answer? Disclose everything. Accidentally neglecting to disclose important information could cause you a lot of problems and cost you a lot of money in the long run.
First, what is a seller’s disclosure? A seller’s disclosure is a legal document in which the seller outlines things they know to be wrong with their home. This document helps buyers decide whether to purchase a home and how much they are willing to pay if they do.
The disclosure goes through many topics, including water supply and quality, roof condition, HVAC issues, electric problems, plumbing issues, the presence of pests, erosion issues, water damages, whether the home is in a floodplain, and even fire damages.
Also, even if all past issues have been resolved and there are no current problems with the home, it’s still important to disclosure all of this information. Buyers will feel more secure seeing what issues have occurred and, more importantly, that they have been amended.
Now, let’s say you didn’t disclose these issues, since, technically, sellers aren’t required to include resolved issues in this document. If the buyer discovers past damage while looking into subsequent, unrelated issues, there could be a lawsuit. Even if the current issue is unrelated to past damage or problems, the buyer has no way of being sure of that.
This situation can be avoided entirely by simply disclosing past issues from the start. The seller can then prove that any future issues the buyer may encounter are just a part of homeownership, rather than a result of prior problems.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.