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.
Tip:
A fact that is material to one buyer may not concern another. If you’re wondering whether something should be disclosed, consult your real estate agent or a property attorney. Ask yourself if you’d want to have the information if you were the buyer. If the answer’s yes, then disclose.
Toxic Hazards
Structural defects are one thing; health risks from exposure to toxic chemicals are another issue altogether. Homebuyers are becoming increasingly concerned about environmental hazards and toxic materials in houses, especially in older homes. Common toxic substances include lead paint, lead pipes, asbestos insulation, asbestos ceilings, formaldehyde insulation and glues, and carbon monoxide or radon gases. Have your home tested for these substances. More buyers are requesting such tests, and may expect you, the seller, to correct the problem or offer a lower price to cover the cost of removing toxic substances.
Article Source: http://realestate.msn.com/selling/article.aspx?cp-documentid=25077
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