Real Estate Disclosure Laws
It is important to realize what disclosures you need to make when a party is selling real estate. You are obliged to disclose potential issues and defects that may impact the property value. In many states it is against the law to conceal major defects and in many states, you have to put the issues in writing. Read on to learn more.
Problem Searching
Most states say you only have to disclose issues you are actually aware of, so you are not under an obligation to use the services of a home inspector. Some states have requirements that are stricter and will identify specific issues you are responsible to investigate. A few states, California is one, have specific and details requirements of disclosure. This is where a real estate expert or lawyer can really assist you with the laws where you live.
Property Inspection
When buying real property, a home inspector can assist you with identifying problems down the road and can help you with written documentation if you did not know of an outstanding issue not mentioned in the report. To get the best value for the property it will help to have a full disclosure on outstanding issues. Nonetheless, there is additional value in the certainty of a home inspection report.
Repairs
You do not have to make repairs for defects in the property, only disclose them. Someone else can deal with the repair. However, the valuation of your property may be impacted so you may want to fix or make repairs so that you are selling a turnkey property.
Federal Laws
Because of the Lead-Based Paint Hazard Reduction Act from 1992, if the house you are selling was built before 1978 you will need to do the following:
Give buyers a disclosure statement regarding any lead-based paint or related hazards;
Give buyers 10 days to test the property for lead;
Provide buyers with the Environmental Protection Agency (EPA) pamphlet entitled Protect Your Family from Lead in Your Home;
Include legal warnings in the sales contract;
Get signed statements from all parties involved verifying legal requirements compliance; and
Keep the signed acknowledgments for three years.
Real Estate Disclosures
Most states say it is mandatory to give real estate disclosures in writing, often so all parties can date and sign the documents. Even if it is not required, disclosures are still best made in writing. Lastly, because of the large amount of monies involved it is advisable to speak with an attorney or real estate broker. Additionally, local laws often dictate the real estate disclosures that need to be made, So make sure you follow all the local rules and state laws.
If you are a recent real property buyer who is now learning of material defects to the property that were not previously disclosed by the seller or seller’s agents, you may have valid claims against seller and its agents for damages. You should consider hiring a real estate litigation attorney and real estate expert witness to help advance your case.
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