Most of the sellers are unaware of the importance of disclosure of their property. The main purpose of property disclosure is to inform buyer about any potential issues with the property. Nearly 90 percent of the sellers do not understand seller disclosure statement at the time of filling it. But these less than full disclosures can cost you a lot of money in the longer run. It is the duty of every seller to disclose any important issue that may affect the value of a house or its desirability. Laws of disclosure vary from one state to another and it is best to contact an attorney for guidance. This article will discuss some important disclosures that you must mention in the disclosure statement of your property.
Disclosure for Repairs
Any repairs made to the property must be mentioned in the disclosure and even if the issue has been successfully resolved. Some important category of repairs that should be mentioned includes roof repairing, electrical or heating system repair, plumbing repair or even cooling issues that have appeared in past. Any repairs mentioned in disclosure of your previous owner should also be mentioned in your disclosure statement. In short, you have to disclose anything that is not even identifiable by the buyer during inspection.
Disclosure for Water Damage
If the house has water issues in past that required repairing then they must be stated in the disclosure. Any type of water issues including leaking roof, dampness and basement flooded with water are serious issues. Moreover any experienced home inspector can easily identify the sign of water damage even if you have tried everything to hide them. One of the main reasons for disclosure related lawsuits include water damage and similar water related problems.
Disclosure for Lead Paints
Do you have a house that was built before 1978? If yes then you have to mention use of lead-based in your house in your disclosure statement. Further the buyers must have a time period of 10 days to test any signs of lead in the house. You need to mention signed statements from all the involved parties that you have fulfilled the requirement of the disclosure. Failing in any of these requirements may lead to a penalty of up to 3 times the damage caused to the buyer or his family.
Disclosure for Termites
Termites are one of the biggest problems faced by house owners. If there are any termite infestation issues with your house that have been treated previously, then it is very important to mention this problem in your disclosure. This issue can reduce the value of your home to a great extent and the best solution is to get your house inspected for termites before listing your house.
Disclosure for Natural Disasters
In California, the sellers have to mention any natural disaster risk in their disclosure. It is meant to warn the buyers of the potential risk involved in the property and to alert them for the trouble they will face in getting their house insured. Some important natural disasters include earthquake zones areas, wildfires and flood plain.
With the current depressing real estate market, no one would like to give up money over the purchase price. But a full disclosure will ensure that you do not face any lawsuits in future which may lead to spending more money!
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