NCR - Berkeley Reduced Fee Real Estate Broker
  • Home
  • SELLERS
    • Seller Signup
    • What's My Home Worth?
    • FAQ
    • 2022 Fall Sellers Guide
  • BUYERS
    • Buyer Rebate Program
    • 2022 Fall Buyer Guide
  • SEARCH HOMES
    • BERKELEY HOMES FOR SALE
    • EL CERRITO HOMES FOR SALE
    • OAKLAND HOMES FOR SALE
    • EMERYVILLE HOMES FOR SALE
    • SAN FRANCISCO HOMES FOR SALE
    • WALNUT CREEK HOMES FOR SALE
    • DANVILLE HOMES FOR SALE
    • SAN RAMON HOMES FOR SALE
  • Resources
    • How To Sell Your Home Fast!
    • Home Buying Guide
    • Room By Room Workbook
    • One Cool Thing
    • Videos
  • My Blog
  • CMA
  • About Me
  • Contact

Real Estate Matters

Required Disclosures When Selling U.S. Real Estate. What you need to disclose to potential home buyers about your property.

7/29/2015

Comments

 
Picture
Copyright NOLO 2009
When selling your home, you may be obligated to disclose problems that could affect the property's value or desirability. In most states, it is illegal to fraudulently conceal major physical defects in your property such as a basement that floods in heavy rains. And many states now require sellers to take a proactive role by making written disclosures about the condition of the property.
What You Must DiscloseGenerally, you are responsible for disclosing only information within your personal knowledge. In other words, you don't usually need to hire inspectors to turn up problems you never had an inkling existed.

Some states require more. However, some states' laws identify certain problems that are your responsibility to search for, whether you see signs of the problem or not. In these cases, or where you could have seen a particular defect but turned a blind eye, you could ultimately end up in court, compensating the buyer for the costs of your failure to speak up sooner.

California's Stringent Disclosure RequirementsCalifornia sellers must fill out and give the buyers a disclosure form listing a broad range of defects -- such as a leaky roof, deaths that occurred within three years on the property, neighborhood nuisances such as a dog that barks every night, and more. In addition, California sellers must disclose potential hazards from floods, earthquakes, fires, environmental hazards, and other problems, in a Natural Hazard Disclosure Statement. California sellers must also alert buyers to the availability of a database maintained by law enforcement authorities on the location of registered sex offenders.


Consider getting an inspection. While it's not usually required, some sellers hire a property inspector to look things over before they put the house on the market. (See Home Inspections: A Crucial Step.) The results will help you determine what items or house features need repair or replacement and will assist you with preparing any required disclosures. An inspection report is also useful in pricing your house and negotiating with prospective buyers.

Err on the side of disclosure. If you have even the faintest question about whether or not to disclose something to potential buyers, avoid the potential for liability and tell all. Full disclosure of any property defects will help increase the buyer's confidence that you're dealing fairly. And it will protect you from legal problems later, such as buyers who want out of the deal or who claim damages suffered because you carelessly or intentionally withheld information about your property.

And remember, just because you disclose a problem doesn't mean you must repair or correct it. The buyers have an interest in getting the deal closed as well, and often overlook minor issues. Or, the disclosed item can become a point of negotiation between you and your buyer.

Disclose lead-based paint and hazards. If you are selling a house built before 1978, you must comply with a federal law called the Residential Lead-Based Paint Hazard Reduction Act of 1992 (U.S. Code § 4852d), also known as Title X. You must:

  • disclose all known lead-based paint and hazards in the house
  • give buyers a pamphlet prepared by the U.S. Environmental Protection Agency (EPA) called Protect Your Family from Lead in Your Home
  • include certain warning language in the contract as well as signed statements from all parties verifying that all requirements were completed
  • keep signed acknowledgements for three years as proof of compliance, and
  • give buyers a ten-day opportunity to test the house for lead.
If you fail to comply with Title X requirements, the buyer can sue you for triple the amount of damages actually suffered. For more information on lead hazards, prevention, and disclosures, contact the National Lead Information Center -- by phone at 800-424-LEAD, or check its website at www.epa.gov/lead.

How to Find Your Area's Required DisclosuresCheck with your real estate agent or attorney or your state department of real estate for disclosures required in your state. Nolo has also summarized the laws in select states. Also, check with your city planning department for information on local ordinances and disclosures that affect your sale. Finally, be aware that real estate agents are increasingly requiring that sellers complete disclosure forms, regardless of whether or not it's legally required in their state.

How You Must DiscloseMost states' laws mandate that disclosures be on special forms the seller must sign and date. Be sure the buyer acknowledges receipt of the disclosures by signing and dating the forms as well. If your state doesn't require a specific disclosure form, be sure the buyer otherwise affirms receipt of your disclosures, in writing.

Copyright Nolo 2009

This article is provided by Nolo. This article provides information about legal, financial and practical issues for individuals and their families. But information is not the same as professional advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a professional such as your lawyer or financial advisor if you want professional assurance that the information here, and your interpretation of it, is appropriate to your particular situation.
Comments
    Picture
    Save Thousands of Dollars When Selling Your Home and Keep More of Your Equity
    Picture
    What is My Home Worth?
    Picture
    Picture
    Things to Consider When Buying a Home Fall 2022 Edition
    Picture
    Things to Consider When Selling Your House Fall 2022 Edition
    Picture
    The Super Secrets of Credit Repair
    View my profile on LinkedIn

    MONTHLY NEWSLETTER

    Archives

    October 2022
    December 2018
    September 2017
    June 2017
    December 2016
    September 2016
    May 2016
    April 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015

    RSS Feed

    Reviews on Zillow
    3354592
    "We met Mike when we were house hunting in Albany, one of the most prized neighborhoods in the bay area. Mike with his honest and charismatic ... more "
    5.0/5.0
    by manelle ouaaz8
    2103529
    "Michael assisted me in locating a home and financing the mortgage. First, being new to the area, he was patient as I gathered information about the ... more "
    5.0/5.0
    by MichaelGoetz8
    1271135
    "Mr. Michael Ertem has been the top real estate professional I have been working with nearly 20 years. I have had half a dozen successful business ... more "
    5.0/5.0
    by pekkan6

    Mortgage Calculator



Northern Crest Realty
930 Dwight Way Suite  10A
Berkeley, CA 94710
Cal Bre # 01977989
© Copyright Northern Crest Realty 2015
About Us
​Downloads
Search Homes
Privacy Policy
Photos used under Creative Commons from DncnH, StockMonkeys.com, aag_photos, bluelotus92, bobbi vie, Eldkvast, West Midlands Police, Rennett Stowe, Usine Collaborative, Montgomery Cty Division of Solid Waste Services, singlerentinmobiliaria, KAZVorpal, wsilver, shrinkin'violet, Perfect Homes, Dima Bushkov, Daddy-David, ruimcosta, Biblioteca General Antonio Machado, Professional Copywriters' Network, AJC ajcann.wordpress.com, Seniju, Keith Williamson, rikkis_refuge, CommNetwork, fabola, the real Kam75, Soon., GotCredit
  • Home
  • SELLERS
    • Seller Signup
    • What's My Home Worth?
    • FAQ
    • 2022 Fall Sellers Guide
  • BUYERS
    • Buyer Rebate Program
    • 2022 Fall Buyer Guide
  • SEARCH HOMES
    • BERKELEY HOMES FOR SALE
    • EL CERRITO HOMES FOR SALE
    • OAKLAND HOMES FOR SALE
    • EMERYVILLE HOMES FOR SALE
    • SAN FRANCISCO HOMES FOR SALE
    • WALNUT CREEK HOMES FOR SALE
    • DANVILLE HOMES FOR SALE
    • SAN RAMON HOMES FOR SALE
  • Resources
    • How To Sell Your Home Fast!
    • Home Buying Guide
    • Room By Room Workbook
    • One Cool Thing
    • Videos
  • My Blog
  • CMA
  • About Me
  • Contact