Understanding real estate disclosures is a crucial issue in your home buying process! Knowing your rights as a home buyer and your responsibilities as a home seller can be different for different types of transactions.

Yes, not all transactions are treated the same when it comes to disclosure laws, depending on your state. To make matters more confusing to need to consider that some disclosures are Federally mandated and once again, they can vary depending on the transaction and age of the home.

Different contracts may be used in different types of transactions, and some types of sales are exempt from specific disclosures. 

Some of the typical differences could be:

  • Traditional Sale - (non foreclosure)
  • REO - Lender Owned Foreclosure
  • Probate Sales
  • Age of Construction
  • In CA, some sales (where a notice of default is filed & the buyer is an investor, etc. etc.) a different purchase agreement is required containing additional disclosures.
  • Properties listed and sold by the same company & representing more than one buyer.

From a practical point, one of the issues I see most often is when buyers receive disclosures late in the transaction, and homeowners documents (although may technically be disclosures, they usually represent a contingency) are notorious for being presented at the last minute.

Again, depending on the laws of your state and/or county, and the terms of your purchase agreement, some disclosures may have a rescission period that allows for a buyer to disapprove and withdraw their offer to purchase.

  • If you're a home buyer, know your rights and work with a REALTOR who understands the contract and the disclosure requirements.
  • As a home seller, if you're in doubt about a disclosure, it's pretty simple..."When in doubt spell it out!"

View my other videos by clicking on the real estate contract video and another on the final walk through video.Preferred Home Brokers

 

My company is Preferred Home Brokers, I'm the Broker and Owner. We've successfully represented home buyers and sellers for more than 35 years. You can reach me at Lynda@PreferredHomeBrokers.com. You can also call direct or text at (714) 595-1494.

-CA Broker's License #00402040

 
Post is included in group: VBloggers

41 Comments on Real Estate Disclosures 101 ~ Right and Responsibilities for Home Buyers & Sellers

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SEP
14
2010
606,747 Points 9 Featured Posts Localism Sponsor Outside Blog Called Shot Master
Good Morning Lynda - very good post and video regarding disclosures. You have done an excellent job of presenting this very important information.
11:27am • #23
606,747 Points 9 Featured Posts Localism Sponsor Outside Blog Called Shot Master
Good Morning Lynda - very good post and video regarding disclosures. You have done an excellent job of presenting this very important information.
11:27am • #24
861,817 Points 174 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Good post.  The obligation and timing of disclosures is often lost on clients and agents.  I'm especially unhappy when an agent has no disclosures (even the minimum legally required) when an offer is presented.  We're in the process of releasing simplified disclosures in Santa Clara and San Mateo counties via PRDS.  They incorporate all the required SBSA disclosures as well as those required by the major brokers into a single 16 page document.
1:19pm • #25
532,041 Points 15 Featured Posts Localism Sponsor Outside Blog

Good morning and nice to hear from you all.

Cal & Dorie ~ Thank you.

Claudette & Brian ~ So you are saying the sellers have no duty to disclose knowndefects? If so, then what happense upon disclovery? Do your agents have any duties in this regard?

Bill, Michael, Jim & Phil ~ Thank you.

Patricia ~ So you're saying it's an "acceptable" practice of non-disclosure? Sellers & agents alike?

Hi Karen ~ Interesting, do agents have any (state) disclosure responsibilities in VA?

David ~ Yes and good question. After a property inspection and defects are discoveredthe buyers (although our CAR contract is as-is) have the right to make "requested" repairs, yet sellers has no duty to do so. At that point a buyer can cancel the contract within the time specified in the purchase agreement.  If that happens, (which it does occasionally yet not routinely) the sellers then have the duty to make the defects known to future buyers. 

 

 

 
1:23pm • #26
532,041 Points 15 Featured Posts Localism Sponsor Outside Blog

Patricia ~ Thank you.

Manuel ~ Good points.

Got to run for now, will be back to read more later, thanks so much, Lynda
1:24pm • #27
4 Featured Posts Outside Blog

Lynda - thanks for a good post- disclosures 101 was full of greatg info!
2:21pm • #28
532,041 Points 15 Featured Posts Localism Sponsor Outside Blog

Richie ~ I agree, tell-em right up front and there's rarely a problem.

Teri~ You're right, many companies do have their own (btw if they do the agent needs to be even more vigilant in reading those too so they know what their buyers are signing) we use the CAR forms in my office, I think they do a darn good job.

Ryan ~ You're right, that's one of the distinctions I pointed out in my post, REO sellers are exempt from many, yet not all of the disclosures.
10:09pm • #29
532,041 Points 15 Featured Posts Localism Sponsor Outside Blog

Barbara Jo, Brent & Deb and Sharon ~ Thanks so much.

Bryan ~ Your comment abut "The obligation and timing of disclosures is often lost on clients and agents" is true imho. At times, it's total overload for consumers.

So your new disclousre are local issues, is that correct and will be on one form? Is that what you're saying?

 
10:12pm • #30
SEP
15
2010

Great post Lynda.  I like how you have both video and explanation.  
9:37am • #31
SEP
16
2010
469,049 Points 18 Featured Posts Localism Sponsor Hit Router Attended Rain Camp Called Shot Master

Lynda--You are calling it Disclosure 101, and maybe it is for buyers and sellers, but I am always surprised at how few realtors know about the properties that do not require disclosures.  This was very professionally done!!
12:09am • #32
1,142,806 Points 242 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp Called Shot Master

Hi Lynda!  I just love your video--you ARE a natural!  Great information for both buyers and sellers and as Pat said, you really do have to know which properties require which disclosures.  Awesome job!
1:06am • #33
532,041 Points 15 Featured Posts Localism Sponsor Outside Blog

Hi Melissa ~ I appreciate your time and comment.

Pat & Debe ~ You are both right imho, and thank you.
2:39am • #34
SEP
17
2010
316,022 Points 2 Featured Posts

Lynda - Great information and I love the video.  In my area, we let the seller signs up all the disclosure form at the time of the listing except the property disclosure form.  We told them to ask their attorney to help them answer all the questions.  However in the last 8 years I have been in real estate, only one client filled it up.  The attorney advised the sellers to pay the $500 refund in lieu of answering the questions.  It is an unforceable disclosure in the NY metropolitan area.  They figure it is cheaper to pay the $500 than sitting down and answering the questions and if something comes up later and was misrepresented, they don't want to get sued.   
9:17am • #35
SEP
18
2010
532,041 Points 15 Featured Posts Localism Sponsor Outside Blog

Hi Rosalinda,

That's an interesting take on disclosures and the first time I've heard anything like that.  In our case in CA some of the disclosures are not optional, therefore the owners are mandated to complete the forms to the best of their ability.
12:00am • #36
188,806 Points 2 Featured Posts Attended Rain Camp Called Shot Master

Wow Lynda! Killer video... you did an outstanding job breaking it down, showing a sample of just how thick those files can get and it was all well put together. Good job!
12:56am • #37
135,926 Points 1 Featured Post Called Shot Master

Hi Lynda -

The HOA documents are a personal issue with me.  Most of the management companies want an extra $100 "rush fee" to provide them in less than the legally mandated 10 days.  Most escrows won't order them until the escrow instructions have been returned, but from now on, I'm just going to get my sellers to order them and pay directly to the HOA and have them sent to escrow as soon as we list the property. That would eliminate the rush, or extension of contingencies.

Since the HOA documents are a legally required seller disclosure, I believe the seller should be prepared to pay for them.  Like everything else the costs can be negotiated.  I've had agents on the other side of my transactions who insist that it is always my client's expense, whether I have the buyer or seller!  The cost of providing them is much less than the potential cost of a delayed closing!
9:11pm • #38
SEP
20
2010
587,503 Points 106 Featured Posts Outside Blog Called Shot Master

Which just goes to show... you top agents have to know a LOT to stay on top of helping both your buyers and your sellers.
11:40pm • #39
532,041 Points 15 Featured Posts Localism Sponsor Outside Blog

Hi Maria ~ Oh you made my day, thanks!

Vicki ~ I couldn't agree with you more, it's a huge issue when it comes to the HOA docs.

Thank you ~ Marte.

 
11:56pm • #40
OCT
21
2010
233,724 Points 3 Featured Posts Localism Sponsor Outside Blog Hit Router

Great Info Lynda,

You touched on some details that many agents do not even know about.
11:41am • #41
532,041 Points 15 Featured Posts Localism Sponsor Outside Blog

Hi Tina,

Thank you...also I would like to ACKNOWLEDGE my friend that YOU were the really GREAT agent on the other end of the transaction referred to in my video.

I will say Tina Maraj...YOU were an absolute pleasure to work with!
11:52pm • #42

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Orange Co. Real Estate~Lynda Eisenmann, Broker-Owner,CRS,CDPE,GRI,SRES, Brea,CA

Brea, CA

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