5 Things Sellers Should Know About Property Disclosure

5 Things Sellers Should Know About Property Disclosure | IgeJohnson.com

As a home seller, it’s your responsibility to make sure that you dot the i’s and cross the t’s before closing. And one of the most important steps you need to do is to fill out your property disclosure form.

What is a Property Disclosure Form?

A property disclosure form or property disclosure statement is a document that details the known issues, problems, and defects that affect the livability or value of the property you’re selling. These can include things like plumbing problems, termite issues, foundation defects, and so on.

What Do You Need to Know About Property Disclosure?

  1. Property disclosure is a must.

    There are no ifs or buts about it — property disclosure, or seller disclosure, is necessary. Aside from the legal ramifications of failing to disclose, you could also lose the transaction and be labeled as an untrustworthy seller if the buyer thinks that you’re consciously keeping something from them.

  2. Seller disclosure varies per state.

    There are general guidelines about what to disclose for home sellers in the United States, but the specifics really vary by state. You can look up the rules in your state online, or if you want to be doubly sure, you can also get the services of a real estate attorney.

  3. Anything that could potentially affect your home’s value should be included in your disclosure.

    Rickety windows, moldy carpets, a toilet that doesn’t flush properly — if it’s a known problem, disclose it. Remember that home buyers do property inspections as a rule these days, so even if you try to hide something, there’s a big chance that they are going to find out about it soon enough.

  4. Property disclosure should be in writing.

    Telling a potential buyer in passing that your house is so-and-so isn’t enough, you have to give them a Property Disclosure Form which is a legally required statement. Having your disclosure in writing also protects you from any future legal problems.

  5. Property disclosure is not the same as property inspection.

    A property inspection is not required for property disclosure. You don’t have to find problems in the house you’re selling; you just need to make sure that all known issues are included in your seller disclosure form.

If you want to have a smooth-sailing home selling process, you need to disclose before you close! Failure to disclose properly can lead to you being sued for failing to disclose the problems and paying more in the long run.

If you’re unsure about what to disclose, a professional realtor can help you out. Book an appointment with us today, and we will happily help you out with all your home selling needs!