Necessary Disclosures in Real Property Transactions

When there is a buyer interested in purchasing a real estate property, it is important that the seller disclose any defect, complications or problems with the building or land to avoid issues later. However, knowing what information the seller must disclose is important, so a lawsuit does not occur once the property is no longer his or hers.

Real property in a real estate deal may possess defects, problems or complications within or outside the building such as with the land itself. In most states, the seller must disclose these issues or face losing through litigation to the buyer. Some of these matters are serious, and others may have fewer effects on the person that chooses to buy the property. However, some disclosures are requirements based on state and national laws. The information is either put in paperwork or the seller may explain it to an agent of the sale to pass on to potential purchasers.
Disclosures in Writing
Many states require the seller to place all issues and negative details in paperwork for the seller to view. These could detract from the sale if the defect is serious enough and costs a great deal to fix. A building that has a marsh underneath could end with the home sinking into the land. Another defective issue could entail rusted pipes that need repair. Some of these the seller must resolve before he or she sells the house. However, others such as appliances that come with the house not working are sometimes items the buyer must fix. Some issues require an assessment or survey of the land and building by the buyer.

Searching for the Problem
Due to the laws in most states where the property owner only needs to disclose any issues he or she is aware of, the potential buyer may need to have a survey or assessment of the land or building completed before the purchase. This could help him or her avoid any unnecessary complications, but certain locations frown on a buyer not completing this step before the paperwork finalizes. However, in other states, the requirements are strict, and adherence is not optional. The seller must search out any problematic issues, defects or complications with the property to avoid a lawsuit.

It is important to research the laws of the state where the property exists to ensure that the buyer and seller have a mutually beneficial deal. Some states have detailed disclosure requirements, and others are more vague with only the barest mention of what is necessary for each party. In these locations, the buyer may need to search out everything specifically to ensure the deal is sound and without problems. The seller is often given more leeway in these areas, and the buyer could end up with a home that has severe defects unknown prior to the purchase.
The Inspector
Often, it is important to have a professional inspect the property for defects and problems. Even if it is not a requirement, it is usually beneficial to ensure someone else looks for the issues. The report may provide a better conclusion to the deal. The new homeowner may use the report to explain how he or she was not aware of the problem. When the seller uses the inspector, this would lead to his or her disclosure of the defect. It could prevent possible disaster through litigation, but the seller may drive away others from the knowledge in the issues within the house.
Repairs and Laws
When the seller is disclosing information about the defects in the house, he or she is not responsible for repairs in usual circumstances. However, he or she may make repairs and increase the cost of the deal. If the defect still exists at the time of the sale, this could decrease the valuation the appraiser places on the home, and then the seller may not have an option to keep the cost higher. The seller must also comply with lead-based paint laws if any hazards exist and provide a ten-day testing for the house. Various warnings are necessary and information about the Environmental Protection Agency.
The Real Estate Lawyer in Real Property Disclosures
The seller may need to hire a real estate lawyer to ensure that all laws remain in adherence when selling the house. If any other state-specific laws need following, the lawyer would explain these and inform the seller of any other requirements. Legal representation may decrease any possible litigation that may arise after the sale.