The disclosure statement is one of the most important documents in a real estate transaction. Its mission: To provide a potential home buyer with as much information about a property as possible before they sign on the dotted line.
That’s why it’s so important for home sellers to set aside some time to fill out these forms thoroughly and accurately. Sellers are required to disclose any physical issues with a home, such as a leaky window or basement that’s prone to flooding. Was the home treated for termites? Was an addition added to the home without the necessary approvals or permits?
Other issues may need to be disclosed as well. Is a new freeway going in close to your home? Anything that affects the property’s value or the homeowner’s enjoyment should be included when filling out a seller’s disclosure form.
While disclosure statements are designed to protect home buyers from purchasing a home with hidden defects, they can also protect sellers from future legal action if the buyer alleges the seller hid a defect in the property. The bottom line: If you know it, disclose it. Want to learn more about disclosure statements? Check out this story.