Selling a house can be a complex process that requires a lot of attention to detail.
If you’re thinking about selling your home, you may be wondering what to tell prospective buyers about that roof leak you had last year, or that DIY repair you made a while back, or the neighbors noisy dog. When selling real estate, it’s important to understand your legal responsibilities as a seller, and one of those obligations is honest disclosures.
These disclosures are designed to protect buyers and ensure that they have all the information they need to make an informed decision about purchasing your property. In this blog post, we’ll go over what you need to know about real estate disclosures when selling your house in Surprise.
What are real estate disclosures?
Real estate disclosures serve as a crucial tool for buyers to understand the potential risks and liabilities associated with the property they intend to purchase.
A property disclosure statement is the actual documentation of a seller’s disclosure. It’s a required form in real estate transactions and outlines any problems with a property that would impact the home’s value or safety. These documents provide a comprehensive overview of the property’s condition, alerting buyers to any potential issues that may impact their decision. Sellers are legally required to disclose these issues, but by fully documenting them on the disclosure statement, sellers are better protected from future legal action (say, if a buyer was to sue the seller post-sale for undisclosed issues).
For instance, the disclosure may indicate whether the property has any structural defects, pest infestations, electrical or plumbing issues, or any other hazards. It may also specify whether the property has had any recent repairs or renovations, and whether they were performed by licensed professionals. By disclosing all relevant information, real estate disclosures help buyers make informed decisions about whether to proceed with a purchase, negotiate the terms of the sale, or even back out of the deal altogether if necessary.
Why are real estate disclosures important?
In addition to protecting buyers from unexpected surprises, real estate disclosures also help to promote transparency and honesty in the real estate industry. It is the responsibility of the seller to disclose any known issues with the property, such as water damage, mold, or structural problems. By doing so, the seller is being upfront and honest with potential buyers, which can help to build trust between the parties involved in the transaction.
Furthermore, real estate disclosures can also help to prevent legal disputes between buyers and sellers. If a seller fails to disclose a known issue with the property and the buyer discovers it after the sale, the buyer may be able to take legal action against the seller. However, if the seller provided full disclosure of any issues with the property, the buyer cannot claim that they were misled or deceived by the seller.
What needs to be disclosed?
When it comes to real estate disclosures, everything must be disclosed. This includes any known defects or issues with the property, any renovations or repairs that have been done, and any problems that have been encountered during ownership. Some common things that need to be disclosed include:
- Health and safety hazards: Mold disclosure is common, as are radon and asbestos disclosures. Foundation issues can also be considered a health and safety issue.
- Mechanical issues: HVAC condition or age, water, sewer and appliances
Structural defects: Issues with the foundation or roof - Flooding: Previous water damage, either environmental or due to plumbing issues
- Renovations: Work you’ve had done on the home must be disclosed, whether it was permitted or not. If you can’t decide if a remodeling project seems big enough to disclose, it’s always best to err on the side of disclosing.
- Pests: Termites and rodents, among others
- Legal issues: You also must report liens against the property or bankruptcy proceedings that could affect the sale.
Less common seller disclosures
These less common disclosures can vary by state, but in general, they’re not as common and often fall outside of the ‘real property’ qualification.
- Property line or zoning disputes
If the property was the scene of a crime or murder, or if it’s known to be haunted (seriously!) - Square-footage discrepancies
- Bad neighbors or nearby noise
- If the home is subject to a homeowners association (HOA)
- Nearby sex offenders
- Nearby toxic materials, like contaminated soil
- Nearby airports
If you’re unsure about whether or not something needs to be disclosed, it’s always better to err on the side of caution and disclose it anyway.
When don’t you need a disclosure?
The property disclosure process is only skipped in rare cases. Here are a few examples, but again, be sure to check your own state laws:
- In bankruptcies and estate sales
- Bank-owned homes and foreclosures
- Gifting or transferring of a property, usually between relatives
- Transfer between spouses in a divorce
- Business transfers, usually in cases where two or more investors co-own a rental property
What happens if you don’t disclose everything?
When selling a property, it’s crucial to disclose any issues or defects with the property to the buyer. Failure to disclose everything could result in serious consequences. If the buyer discovers a problem with the property that you didn’t disclose, they may take legal action against you. Not only could you face expensive fines, but you could also be required to buy back the property from the buyer. This can be incredibly costly and time-consuming, and could even harm your reputation as a seller. For these reasons, it’s always best to be upfront and honest about any issues with the property before completing the sale. This can help you avoid potential legal trouble and ensure that both you and the buyer are satisfied with the transaction.
What if your house needs work?
If your house needs work, it may be better to sell directly to professional homebuyers like Fresh Start Homes AZ. These companies buy houses as-is, which means you don’t have to make any repairs or renovations before selling. This can save you time and money, and you can avoid having to disclose any potential problems with the property.
When you sell your house to Fresh Start Homes AZ, you won’t have to worry about real estate disclosures or any potential legal issues that may arise as a result of not disclosing something. Fresh Start Homes AZ will make you a cash offer for your house and take care of all the paperwork and legal fees associated with the sale. This can make the process of selling your house much easier and less stressful.
Bottom Line When it Comes to Real Estate Disclosures
Real estate disclosures are an important part of selling a house. By disclosing everything upfront, you can protect yourself from potential legal issues and ensure that buyers have all the information they need to make an informed decision about purchasing your property. If your house needs work, consider selling directly to professional homebuyers like Fresh Start Homes AZ. This can save you time and money, and you can avoid having to disclose any potential problems with the property. Contact Fresh Start Homes AZ today to learn more about how we can help you sell your house quickly and easily in Surprise and the surrounding areas. (928) 421-2678 and (928) 239-7573