What buyers and sellers should know about disclosure
Have you heard the saying that what you don’t know won’t hurt you? Well, when it comes to buying real estate, that’s not the case. You need to know if the house you’re buying had a flooding issue in the past or has a defective roof.
That’s why full disclosure—a seller’s obligation to disclose facts about properties for sale—is critical for a successful real estate transaction. Buyers need to know material facts about a home—that is, anything that could affect the sale price or influence the buyer's decision to proceed with the purchase.
Most states, including Texas, require some type of formal seller disclosure to avoid disputes and lawsuits accusing the seller of not disclosing problems he knew about before the sale. Here’s what you need to know.
What’s on a disclosure form?
A disclosure form is a notice most residential sellers are required to give potential buyers on or before an agreed upon date in the contract. The document covers the seller’s awareness of any defects in the property before the sale in reasonable detail.
You can access a copy of this form on the Texas Real Estate Commission’s website for public use; however, you should ask your San Antonio area REALTOR® any questions you have about completing the form and what should be included. For example, if you’ve had a termite problem in the past, that’s something that prospective buyers should know. Or, if the roof has a leak, buyers need to know that, too.
There are also federal laws about disclosure your REALTOR® will discuss with you. For example, someone selling a home built before 1978 must disclose any known lead-based paint problems.
Honesty is the best policy when selling
Intentionally withholding information...