So, you are selling your house? What do you need to disclose? What should you keep to yourself? Selling and disclosures go hand in hand and we think honesty is the best policy.
Selling and Disclosures:
In general, a disclosure document is supposed to provide details about a property’s condition that might negatively affect its value.
Sellers who willfully conceal information can be sued and potentially convicted of a crime. After all, it is illegal to know about serious housing problems and not disclose them. Selling a property “As Is” typically does not exempt a seller from disclosures.
Disclosure rules can affect anyone selling a home. Still, they’re especially likely to affect property flippers, who buy properties to upgrade them and resell them for a quick profit. Property flippers often deal with properties in poor condition. Sometimes, the poor conditions are not adequately taken care of. Thus, leading to problems down the road.
It’s the law in most places to disclose knowledge of any material defects. You may be required to reveal known problems of your home’s roof, walls, foundation, basement, plumbing, heating and electrical systems, as well as past pest problems and the presence of hazardous materials such as radon, lead paint and asbestos. This is rare, but if it happens you are required to report it.
Choices for Disclosure:
Honesty is always the best policy. From a legal standpoint it is important to be honest but also karma – you will most likely buy and sell a few properties, you don’t want bad karam following you!
Even if you don’t disclose problems, the buyer’s home inspector is likely to discover them and your lack of transparency could cause the buyer to walk away.
Worst case scenario, if the buyer discovers the problem after the sale closes, you could be sued for misrepresentation or omission in your disclosure. You don’t want that looming over your head.
You could proactively hire a home inspector to identify small and big problems that you can have fixed before listing your property. The cost of a home inspection will run you about $450 to $700.
The fee may vary depending on the age, size and construction of the house.
As always, if you need help buying, selling or appraising your home do not hesitate to contact Gregg Bamford or Ryan Bamford.