Seller’s disclosure, also known as real estate disclosure, is a document that is legally required by the seller to provide to potential buyers. It outlines known issues or defects in your home that may affect its value and safety. Whether you are purchasing a home in Phoenix, Arizona, or preparing to list your property in Minneapolis, Minneapolis, seller disclosure is essential to both parties in the real estate transaction.
This Redfin article explains what is usually included in a seller’s disclosure form, what a sale means when necessary, “no seller’s disclosure” and how this document protects all involved.
What is a seller’s disclosure form? Why is it important?
Seller disclosure forms are legal documents designed to protect both buyers and sellers at home sales. It provides buyers with transparency regarding the state of their property so that they can make informed decisions. It helps sellers avoid future legal disputes if problems arise after sale.
Disclosures often include defects that sellers recognize, such as past floods, roof problems, and foundation cracks. By signing the form, the seller confirms that he has disclosed everything necessary under state or local law.
Are you thinking about selling it?
Lock the competitiveness of your next home.
When do real estate require sellers to disclose?
In most states, a seller’s disclosure form is provided immediately after the parties sign a purchase agreement. Some agents may offer it early to speed up the process during your home tour. Disclosures must be accurate and thorough, and buyers are usually given several days to review it and back out without penalty if a serious problem is discovered.
In each state, there are different laws regarding sellers’ disclosure, allowing sellers to provide more casual information. However, most states use standardized forms.
What is included in a typical home disclosure report
The requirements vary, but here are the general items that are usually listed on the seller’s disclosure form.
Types of disclosure Structural issues refer to the repair of flood history, mold presence or past leaks of asbestos, radon, lead paint, or soil contamination due to foundation, roof leaks, or cracks in wall damage, or wall damage water. Unresolved permits death or criminal death related to a home condition or known violent crime
Federal law also requires disclosure of lead-based paints in homes built prior to 1978.
What is a “seller’s disclosure” sale?
Sometimes the house is sold without a formal disclosure form. This is known as a “seller-free disclosure” sale and can occur in certain circumstances, such as:
Foreclosure or bank-owned real estate inheritance or sale transfer between a spouse or family member of a real estate sale is a sale as a sale where the buyer agrees to waive disclosure.
In these cases, the buyer usually has a due diligence period (usually about 14 days) to perform an inspection and cancel the contract if a major issue is found.
Can the seller be liable for not disclosing?
yes. If the seller fails to hide or disclose important issues, he or she may be sued for fraud or breach of contract. The buyer can recover damages if he can prove that the seller knows about the matter.
That’s why it’s often said: when you’re suspicious, you disclose. It is recommended to be overly transparent rather than risking legal trouble later.
If the seller is not responsible
Sellers are responsible for disclosing known defects, but they cannot be held responsible for issues they truly didn’t know. For example, if a hidden termite invasion is discovered after sale and the seller doesn’t know about it, they probably won’t be held liable. The law generally protects sellers from liability for undisclosed or private issues that have brought their attention.
However, this also means that buyers will need to do their own due diligence. If something appears to be off or not clearly explained, it is up to the buyer to investigate further.
Always have your home inspected, even if the seller discloses it.
Seller disclosure is a useful document, but it does not replace an inspection of a professional’s home. Buyers should always hire a licensed inspector to assess the facility thoroughly. Inspections can reveal hidden issues that even sellers may not know.
Final takeout for seller disclosure
Seller disclosure notifies buyers of known issues and protects sellers from liability. Requirements vary by state, so check local laws or consult with a real estate agent. Some sales, such as foreclosures and real estate transfers, may not require disclosure. Always have your home inspected, even if detailed seller disclosure is provided.
Understanding seller disclosure and how it works can help you buy and sell with more confidence.
