Sure, you've heard the old saying: "Buyer beware." But in today's litigious legal
world, sellers can't afford to take a purely passive approach to real estate
defects. Even an "as-is" contract won't protect you if you knowingly conceal
information from a potential buyer. If you know there's a problem with your
property, it's up to you to point it out -- or face a costly legal
claim!
Just what kinds of problems should you disclose? Anything that's
"material" -- that is, that might make a difference to the buyer. Be sure to
disclose in writing such items as:
Plumbing or electrical defects
Safety concerns or potentially hazardous conditions, such as
an abandoned well or asbestos insulation
Additions or alterations made without a building permit
Encroachments or fences not on the property line
Ask your REALTOR® about other legally required disclosures
in your area. In some states, you may be required to disclose the fact that a
violent crime has occurred on the property, or to notify buyers about the
availability of a list of registered sex offenders. Other mandated disclosures
may include seismic activity reports, earthquake readiness, and other data.
State law may also prevent sellers from having to disclose that a previous
resident had AIDS.
Remember that your best protection against future
claims is always a full and honest disclosure. If you have questions talk to
your REALTOR®.
TIP: Make sure you put all disclosures in writing, even if
you also discuss a matter with the buyer in person. Your REALTOR® can assist you
by providing a disclosure form.
