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We're Not Hiding Anything Just Because It's Not On The Disclosure Form!

By
Real Estate Agent with Transaction Alliance 513.520.5305 www.LizTour.com SAL.2002007747

Full disclosure We're Not Hiding Anything Just Because It's Not On The Disclosure Form!

So you're looking at Warren County houses for a new home.  You found something you like, you're looking at the home a little closer.  You've even got a copy of the Ohio Residential Property Disclosure Form and you're checking through the form to see what home defects the homeowner has disclosed as being current or repaired.

And then it happens, you stroll down in the basement and you see a crack on the wall.  And it's obviously been repaired!  And there's NOTHING on the disclosure form about it!  "That LOWLIFE JACKWAGON <FCC CENSORING IN PLACE> HOME SELLER!!!  HOW DARE THEY HIDE STUFF FROM ME!!!"

BEFORE you go all judge, jury and executioner on the home seller, there's a couple of things you need to understand about the Ohio Residential Property Disclosure Form (and note we're talking about OHIO, practices in other states WILL vary). 

There are some caveats to the information provided by the seller.  If something is a KNOWN current, unrepaired defect, they're required to let you know about it.  The four pages of the disclosure form are pretty comprehensive, so chances are there's a question on there that will cover what would concern you as the home buyers.  And we're talking MATERIAL, not COSMETIC defects here. 
Excerpt from Ohio Residential Property Disclosure Form

But you also have to consider a few things. 

  • The seller is not responsible for issues for which they don't have direct knowledge, so don't expect them on the disclosures.. 
  • Repairs made prior to their ownership of the home and that have NOT recurred won't be on the disclosures.
  • Repairs made by the current owners in excess of five years ago that have NOT recurred, also will probably NOT be on the disclosures either.

So that crack on the basement wall?  If the home was built in the early 2000's and that crack was repaired prior to 2007 and not had any issues since?  Well the seller is compliant with the intent of the Ohio Residential Property Disclosure Form to make no mention of it.  It doesn't mean they're hiding anything from you, but the fact that a problem hasn't cropped up again in five years should tell you the issue is (most likely) completely corrected. 

Excerpt from Ohio Residential Property Disclosure Form

So if you think there's a problem with a home and think the sellers might not be disclosing something, have a conversation with your buyer's agent (you do have one, right??).  They can ask questions of the listing agent (and sellers) to clarify any concerns you might have.  And if more information is still needed before proceeding with that home, a professional can be brought in to assess the concern.

Sellers know there are consequences for not disclosing defects.  They don't want to jeopardize the sale of their home NOR do they want to be in court after the sale.  So a few minutes of clarification may be all that is needed to keep that home on your short list!

Serving Warren County's residential real estate needs,
Liz and Bill aka BLiz

Posted by

Serving Warren County Ohio & Adjacent Areas

The Liz Spear Team of Transaction Alliance
Elizabeth Spear, ABR, Ohio License SAL.2002007747

William (Bill) Spear, Ohio License SAL.2004011109  Kentucky 77938
Ask for us by name if you visit the office!

EHO
Bill Direct:  513-520-5305
Liz Direct: 513-265-3004     
Fax: 866-302-8418

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Comments(80)

Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Bob, I'm pleading the 5th before some attorney reads this post and gets itchy to employ their degree :)

Aug 28, 2012 06:43 AM
Clint Mckie
Desert Sun Home, commercial Inspections - Carlsbad, NM
Desert Sun Home, Comm. Inspection 1-575-706-5586

Hi Bliz Team,

Why all the hoopla about a disclosure statement in the first place? I mean to say, if a buyer hires a good inspector then the inspection will sort out any and all issues if any. A disclosure statement is only as good as the person writing it.

If the buyers have a question about an old repair then let the buyer ask the seller. I think it's funny to see a statement letter or form that keeps saying to the best of my knowledge I don't know of any lead in the home. Then the I don't know goes on and on just to say I have no knowledge of "----" in the home. When you know darn good and well they knew about the Uh..."Asbestos in the attic". They were told by the mechanical contractor when the new ductwork was being installed.

It's really funny how buyers find the smallest thing to try to get at the seller. On the other hand the seller tries to "I hope they don't see that".

Have a really good evening and Congratulations on the Featured post.

Best, Clint McKie

Aug 28, 2012 09:06 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Clint, That's our feeling.  Hire a good home inspector who works FOR YOU and doesn't have other interests to conflict.  Whether a seller means to or not, writing negative things about their own home and source of pride can't be easy.

Aug 28, 2012 11:16 AM
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Buyer beware!  The buyer should always have the inspections done to protect their interest.

Aug 28, 2012 11:47 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Kathy, Definitely.  Relying on the seller alone to know and report everything just isn't reasonable.

Aug 28, 2012 08:02 PM
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

Good advice. I always advise to disclose everything you know.  Even further I say if you were the buyer and would like to know it, disclose it. Of course there is always the disclaimer...if it is readily/easily observable disclosure is not required in Florida.

Aug 28, 2012 10:39 PM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Liz, what a great post to help Buyers understand the Sellers Disclosure form. I agree with Greg Nino, the disclosure is a "visual tool."  Buyers need to have their own inspections to determine if the property meets their expectations.

Aug 28, 2012 11:57 PM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Gary, Interesting to see the state to state variation.

Sharon, I think Greg's comment captures what I think the true purpose is.  It's a starting point.

Aug 29, 2012 12:49 AM
Travis "the SOLD man" Parker; Broker/Owner
Travis Realty - Enterprise, AL
email: Travis@theSOLDman.me / cell: 334-494-7846

We don't have Disclosures locally, so the explanation of the details is nice since we MAY eventually start using one.

THANK YOU!!

Aug 29, 2012 01:35 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Travis, If your area has to create them, you can find quite a few varieties detailed in the comments above.  Personally, I prefer having some line in the sand for dates on fully corrected items.

Aug 29, 2012 02:00 AM
Susan Neal
RE/MAX Gold, Fair Oaks - Fair Oaks, CA
Fair Oaks CA & Sacramento Area Real Estate Broker
Hi BLiz - Buyers need to know that their best protection is having an experienced agent representing them. Our California disclosure forms are pretty extensive, but they can't anticpate every tiny detail. A buyers' rep will review them and ask about anything not covered by the forms. Also, the agents on both sides of the transaction should complete an Agent's Visual Inspection Disclosure, which will cover some of the little easily spotted things that a buyer with stars in his eyes might not notice.
Aug 29, 2012 02:10 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Susan, Put all that together with a professional home inspector and you'd hope the buyer would have 99% of what they need to know covered.

Aug 29, 2012 02:29 AM
Dorte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Bliz,

Even though home owners think they know their homes well, they are often surprised, when something shows up on the home inspection, that they did not disclose or even see, while living in the home. Amazing, what we can overlook, when we are comfortable.

Aug 29, 2012 05:43 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Dorte, No doubt, have seen it plenty of times.  They either don't know it's wrong, or don't notice it.  It's home and it's comfortable.

Aug 29, 2012 05:58 AM
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

There is a big misunderstanding about disclosures. I hate filling out mine too. I often am asked why something which shows up on the inspection isn't on the seller disclosures

Aug 29, 2012 06:35 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Karen, And I think more often than not it comes down to the sellers aren't professional inspectors.  They either don't know at all, or they think "it's no big deal".  They've been living with that drippy faucet (or whatever) for years.

Aug 29, 2012 10:02 AM
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

I found this from a reblog!  I just want to pop in and say hola!  I recently had a buyer threatening to sue ME because he felt the seller didn't fill out the SRPD correctly.  Things slip people's minds and when in doubt - always get a thorough home inspection!

Nov 08, 2012 03:05 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Renee, Our Ohio disclosure form changes effective 1/1/13, so they're transferring the generic 5 year rule to specific sections (or at least that's what I gathered from my initial reading).  Buyers need to get a home inspection, PERIOD.  Don't blame the listing agent if you skipped doing it, and if our buyer wants to skip we want a signed statement that you acted counter to our advice.

Nov 08, 2012 03:51 AM
Wayne B. Pruner
Oregon First - Tigard, OR
Tigard Oregon Homes for Sale, Realtor, GRI

It would be pretty easy to forget about a repaired crack in the basement. The Buyer needed to be coached a little better.

Nov 16, 2012 12:48 PM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Wayne, Our observation was the buyer's agent had very little influence with her client.

Nov 16, 2012 08:50 PM