Are There Different Types Of Seller Disclosures?
Wondering what you might have to disclose? Here are some of the common types of disclosures sellers might be required to make to a prospective buyer.
Property Repair History
Sellers may be required to disclose a list of all of the major repairs made in various areas of the property. Buyers will want to know of any past problems. They’ll want to know if an issue’s been fixed and how it was fixed, if it requires ongoing maintenance or if it has the potential to cause problems in the future. Knowing that something’s been repaired can also bring peace of mind and even be a selling point.
Damage, Hazards And Faulty Systems
Common issues that require disclosures include anything that may cause major foundation issues to a property or endanger a prospective buyer or the integrity of the house. These issues and hazards include:
- Water damage
- Cracks in the foundation
- Termites/Termite damage
- Infestations
- Asbestos
- Radon
- Lead paint
- Damaged or malfunctioning systems, including plumbing and electrical
Death In The Home
Most states don’t require the disclosure of a death in the home, and those that do have different rules on timelines and types of death. Some states only require a death be disclosed if it happened within the last year. California requires a death be disclosed if it happened within the last 3 years. Some states require a death in the home be disclosed if it was a murder or suicide.
While a written disclosure may not be required, real estate agents must disclose deaths if specifically asked by the buyer.
HOA Governance
You’ll need to disclose if your property falls under the governance of a homeowners association or condominium association. That’s because there are often fees to pay and specific rules to follow that could turn a buyer off. Either way, they’ll need to know what they’re getting into, so make sure you also include the fees and required rules to follow.
Liens On The Property
A lien on a property is ownership rights given to a lender should the property owner not repay their debt to the lender. If there is a lien on the property, the seller must get the lien holder’s permission to sell the property. If it’s granted, the seller must disclose any existing liens on the property.
With a lien on the property, the new homeowner could essentially lose their home to the lienholder if a debt isn’t paid back. Buying a home with an existing lien is very high-risk and typically not advised.
Items That Stay With The House Or Don’t
In some states, sellers are required to disclose what items come with the property and which ones will be removed when the seller moves out. These can include appliances, lighting fixtures and furniture.
Property Line Disputes
Property line disputes must be disclosed as they can cause issues with new homeowners and neighbors. If there is pending action against your property, potential buyers will need to know that the neighbor has a claim against the land.
Nearby Nuisances
Some states may require the seller to disclose certain types of noises, odors and other neighborhood occurrences that may annoy the new homeowner or make living conditions unbearable. You may need to disclose your home’s close proximity to sources of such nuisances, including farms, airports, shooting ranges, landfills or military bases.
