WHAT IS A HOME SELLER REQUIRED TO DISCLOSE?

Author: Jeannine L. Bolhouse
Date: 10/06/2009

Buying a home is one of the largest purchases a person will make in their life. There are many legal requirements involved in completing the transaction for both buyers and sellers. One important legal requirement is the Seller Disclosure Act.
The Act requires sellers to provide the purchaser a timely, specific, and detailed disclosure concerning the physical condition of the premises, its structures and certain fixtures in it, as well as certain broader and historical data such as the presence or absence of environmental hazards.
Today, the disclosure is a relatively standard form that can be supplied by most realtors. Sellers are required to disclose all information regarding the condition of the home within their knowledge. Sellers are not required to obtain inspections or any independent analysis. Therefore, sellers will generally only get into trouble if they intentionally conceal defects with the home of which they were personally aware.
From the buyer’s standpoint, it can be extremely risky to rely on a Seller Disclosure Statement as a complete or accurate assessment of the property. If the home contains defects of which the seller has no personal knowledge, those defects will not be in the Seller Disclosure Statement and the Seller will not be liable for their failure to disclose them. Furthermore, the Seller Disclosure Statement is not a warranty for any of the items in the home. Therefore, Seller Disclosure Statements are not overly reliable and should never be a substitute for independent inspections of the property by an expert.
Interestingly, there are a few notable exceptions to the seller disclosure requirements including, but not limited to: newly constructed residential property, transfers pursuant to court order such as foreclosures, and transfers of more than 4 residential units.
If you have questions regarding the requirements of the Seller Disclosure Act or any real estate issues, one of our real estate attorneys would be happy to assist you.