The Infamous “Seller Disclosures”
The term “Seller Disclosures” has been known to strike fear into many a home seller! It can sound very ominous and daunting. But with some understanding a few tips, the process of disclosing the condition and features of a property for sale can be reasonably straight forward.
“Sellers have an affirmative duty to disclose to buyers all material conditions, defects and/or issues known to them that might impact the value or desirability of the Property.” * Disclosing information about a property for sale is a very serious matter. One should not rush the process nor take it lightly. Here are some tips homeowners can apply—some even if they do not plan to sell in the near future.
Keep Records
Keep all inspection reports, invoices for large repairs (e.g. HVAC or leaks) in a file and keep a log of all major renovations or repairs. This can be done in a computer file or even a notebook. Remodeled the kitchen? Jot down the month and year. Replaced the windows? Jot it down. Purchased a new pool pump? —keep a note of any major repair, renovation or upgrade. If you haven’t been doing so, start now! This will save stress and time if you decide to sell your home. In your file, it is helpful to label exactly what the invoices are for. We think we will remember, but it’s not always the case five years down the line. You may be asked to provide documentation regarding a condition you disclose.
Allow Time to Complete Disclosures
If you do decide to sell your home, ask your real estate agent for disclosure forms right away. In California, Seller Disclosures are due after seven days of going into contract unless otherwise agreed. By completing forms before you even go into contract, you allow yourself time to do the job right and decrease stress of rushing.
What Should I Disclose?
If you are unsure about whether something should be disclosed or not, you should probably disclose it. Share information about any condition, defect or issue which may affect the value or desirability of the condition. Most buyers are aware that homes are generally not perfect—nearly every home has had an issue: rodents, leaks, faulty dishwasher… to name a few. They key is to be honest and factual. Even if an issue has been rectified, share it and provide documentation of the repair.
When to Consult a Real Estate Attorney
It is recommended by the California Association of Realtors that you consult a qualified California real estate attorney for advice when:
- You have any questions about the applicability of any law to your property.
- You need help regarding what to disclose, how to disclose it, or what changes need to be made to your disclosure forms.
While providing Seller Disclosures is very important and required in most real estate transactions, with some preparation the process can go very smoothly.
*From California Association of Realtor’s Disclosure Information Advisory form.
Debbie Austin is a realtor associate with Keller Williams, Roseville and has been helping clients buy and sell property in the area for 16 years. If you have a specific real estate question you wish to see addressed, contact Debbie at debbieaustin@kw.com or debbieaustingroup.com.
