ANSWERS: 2
  • Generally any material defects that the home owner is aware of or has fixed/repaired. If there was a leak and it was repaired, it should be disclosed.
  • In many states sellers are required to disclose known defects about the property. Even if not required by law, it is always good policy to disclose known defects. Some states, most notably California, require the seller to provide environmental disclosure. As a seller, it is your responsibility to understand legal requirements for your jurisdiction. We suggest you hire a real estate attorney who can help you meet your legal requirements and negotiate your purchase agreement when the time comes. Areas of Disclosure for Which You May Be Responsible (Examples-www.nolo.com) -Earthquake Fault Zone A seller must disclose that a property is located within an Earthquake Fault Zone if the maps or information contained in the maps are reasonably available; i.e., available at county offices (Public Resources Code Section 2621.9). -Seismic Hazard Zone A seller must disclose that a property is located within a Seismic Hazard Zone if the maps or information contained in the maps are reasonably available; i.e., available at county offices (Public Resources Code Section 2694). -State Fire Responsibility Area A seller must disclose that a property is located within a State Fire Responsibility Area if seller has actual knowledge or when a map is provided to county assessor (Public Resources Code Section 4136). -Mello-Roos Community Facilities District If property is within a Mello-Roos Community Facilities District (CFD), seller must make a good faith effort to obtain and deliver disclosure notice to the buyer from the levying agency (Civil Code Section 1102.6b and Government Code Section 53340.2). -Flood Hazard Area Federal law requires federally regulated lending institutions making any loan secured by real estate to notify the purchaser (or obtain satisfactory assurances that the seller has notified the purchaser), in writing that the property for sale is located within a Flood Hazard Area. Although federal law only requires lenders to make this disclosure, common law principles of disclosure may impose a duty on the seller to make this disclosure as well (42 United States Code Section 4104a; 12 Code of Federal Regulations Section 339.6). Sellers should disclose facts about the home Home owners in most states in the US are required to fill out a form that discloses material facts about the house they are selling. Material facts are details about the condition or legal status of the property, the age of its components and any defects that may exist. The exact questions that are asked vary from state to state, but they cover many of the same topics. Even if your state is one of the few that does not require a written disclosure, the real estate laws probably do require sellers to disclose any known problems with the house they are selling. -Examples of Material Facts Age of shingles and other roof components. Leaks in the roof or foundation walls. Existing mold or mildew within the home. Damage from wood destroying insects. Problems with sewer or septic systems. The amount of property taxes paid per year. The square footage of the home. A planned roadway that will slice ten feet from the property's front yard. Details about an individual who claims to have an interest in the property. Information about a structure on the property that overlaps an adjacent property. The existence of a buried oil tank. -Things That Are Not Material Facts Personal information about a seller, such as impending foreclosure or divorce. The seller's reasons for moving. People with AIDS or HIV are considered legally handicapped by Fair Housing laws. An agent cannot legally answer you if your questions about the home focus on that illness. Seller's agents are not allowed to disclose personal information about sellers. Buyer's agents may disclose personal information about sellers to their buyer clients, except AIDS/HIV as discussed above. -Details that May or May Not Be Material Facts That a death occurred in the home, even if it was a homicide. Neither is considered a material fact in North Carolina, so disclosure is not made unless a buyer specifically asks--then the agent must be truthful. Your state laws may differ. That a home is considered to be haunted. -What Should Agents Disclose Agents are not expected to be home inspectors, but they can be held accountable for material facts they are aware of--or should have been aware of. If a seller covers rotting exterior wood with another siding before an agents sees the home, the agent wouldn't be expected to have knowledge of it. But if that operation is taking place during the listing, the agent must disclose the problem if the owner does not. If an agent notices that sellers have elevated everything that's stored in the basement, the agent should ask if there's an ongoing water problem. If the agent sees that the seller still has pans sitting around after a heavy rain, the agent should question the seller about the integrity of the roof. -Home Buyer's Bottom Line Ask as many questions as necessary about the home before you make an offer. Get responses to important questions in writing. Make sure your offer to purchase is contingent on a satisfactory home inspection. Even if sellers are not required to furnish a property disclosure, they should still disclose known problems. Sellers often declare "no representation" when they are unaware or unsure of a problem. It doesn't necessarily mean they are being evasive. Perhaps the home is part of an estate settlement and the person handling the sale simply doesn't know the answers. Maybe it's a vacation residence that the seller hasn't recently used.

Copyright 2023, Wired Ivy, LLC

Answerbag | Terms of Service | Privacy Policy