Every house has its flaws, and while realtors always stress how you can dress up your home for a quick and well priced sale, that doesn't mean hiding all its real flaws. In fact, many disclosures are mandatory. While sale of commercial and residential properties have some differing legal requirements, many of the following disclosures are required for both.
The following are required, in writing, to be disclosed by the seller to any potential buyer:
Neighborhood information, particularly regarding any problems in the neighborhood that will impact the life of a buyer.
Home defects or modifications, appliances to be included and any relevant information about them, and any easements.
In addition, if the home is situated in any known Hazard Zones. This includes flood hazard including inundation (an area surrounding a dam, susceptible in the event of dam failure), and fire hazard, both wherein a property owner is responsible for a certain standard of preventative maintenance and where the state has fire suppression responsibilities. Earthquake fault lines also fall into this category, with sections for the property being located near a fault line, or in an area known for seismic hazards, that is a lot of ground movement during earthquakes. There are pamphlets that must be given to buyers, guides for earthquake safety. Also, if there is lead-based paint in the home, this is another area of disclosure. There are also pamphlets regarding lead paint safety that are required to be provided. Of course, any known hazardous substances on the property must also be disclosed. Further, any environmental hazards in the neighborhood are also relevant, and should therefore be disclosed.
The working condition of smoke detectors must be disclosed. Different states have different laws governing the placement and mandatory minimum number of smoke detectors. Be sure to investigate the laws that apply to you, before you put your home up for sale.
Other than the homes stability and safety, there are a number of other mandatory disclosures. Sellers are required to disclose the tax bracket of the district, especially if it is in an area of special taxes. The seller is also required to disclose the whereabouts of any known, registered sex offenders living in the area. Sellers can do this by notifying buyers of how to access the registered sex offender's database.
This is an idea of the kinds of things that must be disclosed before a real estate sale. While your state may have varying laws that include or disclude certain things, realize that anything a buyer is not told about a property, but that could negatively affect them, could turn into a law suit. To prevent this, it is always best to disclose any and all information that the buyer might find relevant, even if it means your homes flaws stand out like a sore thumb. Any money lost in a sale is sure to be less than that lost in a lawsuit after the fact.
