Disclosure is the release of all applicable information that could influence the buyer’s decision about a property. It is unethical for home sellers and their representatives to hide listings defects to potential buyers. Buyers could withdraw their offer or take sellers to court if sellers fail to disclose defects associated with their listings.
Examples of disclosures
Property disclosure includes a lot of elements. Everything that is potentials to the quality of the property or influence the buyer’s decision should be disclosed. The following is a list of some elements to be disclosed.
- Leaky roof
- Sunken foundation
- Flood zone location
- Water damages
- Unauthorized repairs on the property
- Plumbing and electrical major issues
- Quality of water in the property
- Chemical damages on the property
Consequences of nondisclosure
Having transparency about the property you are selling is vital to buyers and in the court of law. There are many consequences associated with the nondisclosure of defects and problems associated with your property. The following are some of these consequences.
- Getting sued and dragged in an endless legal battle with the buyer
- Losing money in court
- Losing money on the property
- Wasting time
- Not having your property sold on time
- Conflicts between you and the buyer
- Real estate agents can lose their jobs and reputation
Benefits of disclosure
- Avoid legal actions against you
- You save money by not going to court
- No conflicts between you and buyers
- The house will go faster
- You build good connections with the buyer and buyer’s agent
- You will keep your license (for real estate agents)
Always make sure that you disclose all defects associated with the property you are selling. This will protect you and the buyer from financial and legal issues. By being transparent, you would have achieved some of the basic requirements in real estate.
