Selling or even buying a property is not a straightforward task as it involves a plethora of legal and financial processes before the sale is completed. Real estate disclosures are one of the main prerequisites for selling your property. Essentially, real estate disclosure is a document which informs or reveals important information such as defects and faults to the potential buyer. This disclosure is intended to help the buyer make an informed decision and to avoid post-sale conflicts over defects in the property. As any real estate lawyer would tell you, providing a real estate disclosure is not optional, it is a compulsory prerequisite a buyer must fulfill in order to sell his or her real estate property.
What do you need to disclose in a real estate disclosure document?
Essentially the purpose of a real estate disclosure is to inform the prospective buyer of any faults and issues with the property which may diminish the value of the property. Major renovations or changes made to the property are the most common type of information divulged in a real estate disclosure.
In case any renovations or improvements were made by the seller, he or she might be asked whether they sought the required permit(s) from the relevant authorities. This information is required as any renovation work done on the property without a permit from the local municipality would not be up to the standards set by the law.
Furthermore, other potential issues which need to be included in a real estate disclosure are termite or pest issues, neighborhood issues or any major or minor defects in the primary utility system installed within the property.
Do you need to conduct an inspection for complete disclosure?
No, a real estate disclosure requires the seller to reveal the defects or faults of the property that he or she already is aware of. Disclosure is only limited to the seller’s knowledge regarding the defects and is not equivalent to an inspection by an independent third party. Such an inspection might reveal flaws which even the seller might be unaware of. Buyers often tend to seek an inspection as it gives them a clear indication of the value of the property they are purchasing. Therefore, in most cases, sellers themselves acquire the services of a property inspector prior to listing their property for sale.
For further information or to schedule a free consultation, contact Casement Law Group, P.C. today at (847) 888-9300 to speak with a real estate lawyer on this issue.