Knowledge Focus: Property Disclosures
Property Disclosures
In the purchase and sale of an existing home, the sellers must complete a seller's disclosure statement regarding the home. Disclosures cover a variety of topics, including the condition of title, the availability services, flood issues, easements, zoning, and details regarding the history and the condition of the house. Unless the buyer waives review of this statement, the seller must deliver a completed statement to the buyer for review prior to or within a certain time after the purchase and sale agreement has been signed by both parties. The buyer then may elect to terminate the transaction by giving timely and appropriate notice to the seller. If the buyer does not object, then the disclosures are deemed to be acceptable to the buyer.
Most state laws mandate that disclosures be on special forms the seller must sign and date. Also note, that if there is a real estate broker or agent involved in the transaction, and if they have personal knowledge of any latent defects, the agent is legally obligated to disclose those defects to the potential purchaser, regardless of whether the seller discloses or disclaims.
