What Is A Seller’s Disclosure?

You may we wondering what is a seller’s disclosure?  Disclosure statements, which can come in a variety of forms, are the buyer’s opportunity to learn as much as they can about the property and the seller’s experience in it.

Not only do disclosure documents serve to inform buyers, but they can also protect the sellers from future legal action. It is the seller’s chance to reveal anything that can negatively affect the value, usefulness, or enjoyment of the property.

A seller’s disclosure is a document provided by a seller that answers many questions about their house.  Most seller’s disclosure’s are very detailed and cover many areas of the home such as structural conditions, roof, appliances, electrical, telecommunications, mechanical, water, sewer, utilities, swimming pool, hot tub, sauna, zoning, legal issues, access, parking, drainage, water supply, sewer, environmental conditions, community association, home owner’s association, and general disclosures.

The purpose of the seller’s disclosure is to provide potential buyers with accurate information known about the house by the seller.  Sellers should always answer all the questions accurately.  Smart sellers let buyers know everything they need to know up front. It’s smart because it saves everyone time, hassle and expense by preventing deals from falling apart. Also, sellers set themselves up for potential legal action by providing inaccurate information and not properly disclosing problems with their house.

Buyers should review the seller’s disclosure prior to preparing an offer.  There may be information in the seller’s disclosure that may impact your decision to write an offer and how much you are willing to pay for the home.  Buyers should read and understand the seller’s disclosure.  However, the seller’s disclosure is not substitute for a good home inspection and due diligence by the buyer.

Buyers and sellers need to take the seller’s disclosure seriously and respond accordingly.

Buyers will not receive a complete seller’s disclosure when purchasing bank owned or foreclosed properties. Some land lords that have never lived in a home may not provide a seller’s disclosure. In addition, many of the home flippers will not provide a seller’s disclosure.

It is always a good idea to get the home inspections by a certified and licensed home inspector.

I hope this article answers your question What is a seller’s disclosure?