Disclosures and Why They Are Important is a subject I'd like to talk about today.
In the State of New Jersey, when a homeowner lists their property for sale, there are many forms to complete with the listing agent. Amongst the many forms, one that we believe is the most important is the Seller Disclosure Form.
The purpose of this form is for the Seller to disclose everything they know to be true about the home.
There are very important items listed on this form that a Buyer will want to know about the home before they consider making an offer.
Seller Disclosure Forms are not standard and if the real estate office representing the seller doesn't use them, the Seller won't be expected to complete this form. Some of the items disclosed in a Seller Disclosure Form are as follows:
1. Age of Roof and descriptions such as whether it is a full strip off or a second layer. Names & contact information of the contractor who may have done any work on the roof.
2. Age of Furnace, Boiler, Air Conditioning Components, Hot Water Heater. Names & contact information of the contractor who may have done any work or replaced these components.
3. Underground Tanks such as Oil Tanks, Septic Tanks, Pool Liners. If a tank was abandoned it would be prudent and save alot of headaches if the Seller disclosed the manner in which it was decommissioned as well as any supporting paperwork.
4. Electrical work including updated panels and wiring should be disclosed with names of contractors & their contact information.
5. Land - The soil and whether it's shifting, has any fill - flood zones, drainage, encroachments, easements and whether or not it is located in an earthquake zone.
6. Termites and Pests and whether or not the home had ever been checked by a professional and/or treated. This should be supported by documentation as well as any warranties that may be transferred to the new owner.
7. Basements & Crawlspaces and whether or not there are sump pumps, french drains or ever any attempts to control water seepage or moisture related problems.
8. Structural Items that may be deteriorated or cracked as well as any remodels done by current owner or previous owners that is known by current owner. As always, supporting documentation and contact information of contractors.
9. Plumbing related issues such as water softeners, Wells, sewage issues, leaks, back-ups etc.
10. Toxic substances that may be known such as asbestos, radon, lead paint and mold should be disclosed, if known by the current owner.
11. The age of the home and the date it was purchased by the current owner are key to know.
12. The items being left or taken by the current owner should also be disclosed here along with their condition. If the Seller is not currently occupying the home, that is something worth mentioning.
It should be mentioned that the Seller Disclosure is not intended to replace a home inspection but rather to assist the buyer in determining the value of the property they are considering.
In the hustle and bustle of both listing a property as well as considering a home to purchase, this document can be a huge help to both the Seller as well as the Buyer for obvious reasons.
This list may not be complete according to all real estate offices. However, this list is one that is worth printing out if you are considering the Sale or Purchase of a home. The Sale and Purchase of a home is one of the largest transactions most people undertake in their lifetimes. The history of a home can have many hidden secrets that could very possibly affect the saleability by it's owner as well as by an uninformed buyer. It can even help add value to the home.
This is the story of Seller Disclosures and Why They Are Important.
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