What is a Seller's Disclosure?

Sellers of residential property are required to disclose any defects that they are aware of that their property has. The disclosure is a protection for buyers that gives them information about the property they are considering purchasing. The disclosure lists items that are not working in the home and also cover the history of the home so can reveal items that even a home inspector may not uncover.

In most cases, depending how a contract is written, a buyer who has signed a contract has the option to cancel the contract after they've received the sellers disclosure if they object to any items on it.

The disclosure is on a standard form and and has to disclose certain items at a minimum. An outline is below:

1. Items that the home has and whether they are working. Items such as cooktop, dishwasher, pool and central A/C
   
2. The roof type and age.
   
3. Defects in the building systems such as the foundation, walls, windows, etc.
   
4. Specific conditions such as asbestos, previous flooding, termites, etc.
   
5. Other non-building items like: Has an addition been added? Is there an HOA? Any deed restriction violations? Any lawsuits? Safety hazards?

For a detailed list please see the example below. The sellers disclosure is a great tool for both buyers and sellers to make sure everyone is aware of the same issues. However as it is only what the seller is aware of always get a home inspection too to find out those issues the seller may not be aware of or that they "forgot"....

As always please email me with any questions, billconover@america-lending.com. Click on the image to see a larger version.