What Exactly Does a Seller Have to Disclose to Potential Buyers When Listing a Home?
When it comes to selling a home, transparency isn’t just good practice—it’s often a legal obligation. The extent of this obligation differs from area to area. In some areas, sellers have next to no obligations, whereas in others the obligations can be quite extensive. Even in states where disclosure obligations are minimal, sellers still have to disclose known, latent, and material defects.
The following are categories of issues sellers may have to disclose before listing a home.
1. Structural and Mechanical Defects
If there are any known problems with the foundation, roof, walls, plumbing, or electrical systems, sellers must disclose them. For example, if the roof leaks or the plumbing has a history of backups, these issues need to be on the table. Buyers should know about any major repairs that might be needed after the purchase.
2. Environmental Hazards
This category covers a wide range of potential dangers, including lead-based paint (especially in homes built before 1978), mold, asbestos, or radon gas. Sellers are obligated to inform buyers of any known environmental hazards that could impact health or safety.
3. Water Damage or Flooding
Has the basement flooded before? Has the property sustained water damage from leaks, burst pipes, or other issues? These details must be shared with potential buyers. Even if the damage has been repaired, it’s crucial to disclose the property’s history.
4. Pest Infestations
Sellers need to disclose any past or current pest issues, whether it’s termites, rodents, or other critters that might have caused damage to the home. Failing to disclose past infestations could result in future legal problems if the buyer finds out after closing.
5. Homeowners’ Association (HOA) Rules
If the property is part of an HOA, the seller must provide details about the association's rules, fees, and any restrictions on the property. Buyers should understand what they’re agreeing to before making a purchase, including any additional financial obligations.
6. Neighborhood Nuisances
If there’s excessive noise from nearby roads, construction, or businesses, or if there are unpleasant odors from nearby industrial plants or farms, sellers should disclose these nuisances. The same goes for legal disputes involving neighboring properties or ongoing construction projects that could affect the home.
7. Legal Issues
If there are any ongoing disputes, liens, or boundary issues with the property, the seller must inform the buyer. Unresolved legal problems can significantly affect the transfer of ownership, so this information is critical.
Why Full Disclosure Matters
At Snapdoor we inform sellers about which disclosures are required in their home’s jurisdiction. Such disclosures prevent legal headaches for both the seller and the buyer. Most states require sellers to fill out a disclosure form, which provides a clear list of the required information. Full transparency not only protects the seller from future liability but also fosters trust with potential buyers.
Snapdoor believes transparency is key to a smooth and successful sale, for both buyer and seller. This is a reason why Snapdoor, at its own cost, conducts a pre-listing inspection on every home. Such an inspection provides an objective evaluation of the home and allows you as a seller to provide fact-based disclosures. In the end, honesty is always the best policy when selling a home.
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