The Seller’s Disclosure Is Suppose To Disclose – Look For The Clues That The Seller May Not Want You To Know
A seller’s disclosure is a document that allows the seller to tell you, the buyer, what they know about their home. This document is part of the Purchase and Sale Agreement and is intended to help you make a good buying decision.
Here’s what you need to know about How to look at a seller’s disclosure:
1. Bank-owned homes, investor purchased homes and new construction will not include a seller’s disclosure.
2. You will need to study this document closely, looking for the age of depreciable items and any item that is marked with a “yes” or “don’t know”as a disclosure. Any “yes” needs to have an explanation that is detailed with what, when, how etc… If the item is not detailed, ask for further explanation. “Don’t know” should be taken seriously and approached by your inspector.
3. The disclosure also tells you what is included in the sale. This list includes the mailbox; kitchen knobs, light plates and many small items that buyers think automatically come with the home. Make sure that you ask for any items that are in the house that you want included in the sale by comparing the disclosure against your own list.
4. The document will also tell you about neighborhood assessments, warranties on things in the home and any bonds that are on the home. Make sure that you follow-up to make sure that you have the paperwork on these items at closing.
5. Use the disclosure to also have your inspector search for specific problems that the seller has claimed on the disclosure. Remember that “don’t knows” need to be thoroughly inspected.
6. If the inspector finds something that the seller has not disclosed, you may be able to get out of a contract based on fraud during your inspection period if your contract is restrictive. The seller has the obligation to tell you everything that should have seen or known about the property.
7. Sellers should use the disclosure that was given to them by the previous seller if the home was a resale when they purchased it.
8. Read the document twice to make sure that you understand the disclosure that the seller is making to you and then proceed accordingly.
Should you find anything that needs to be updated by the seller, ask the listing agent to get the seller to make the corrections and add Revised, the date and their initials. This is a very important document and it should be taken very seriously. Take your time when you are understanding this document.
We hope that you like reading about How to look at a seller’s disclosure.