What are Seller Disclosures and Material Facts? Real Estate is a field peppered with language you may not encounter until you are in the process of buying or selling your home. Here’s what you need to know!
What is a Seller Disclosure?
A Seller Disclosure is a list of any known issues with a property and details of any renovation projects undertaken while the seller has owned the home. The Seller Disclosure is completed by the Seller and is usually given to the buyer before close. The buyer has the right to withdraw their offer if the disclosure reveals problems with the property they are not willing to take on in the purchase.
What Is A Seller Obligated To Disclose?
So, what is a seller obligated to disclose? Any Material Fact they are aware of. This can include, structural problems, which appliances are included in the sale, room additions, damage, deaths occurring in the home within a three year time frame, noise problems in the area, etc.
What Is A Material Fact?
” A material fact in real estate is defined as a fact that, if known, might have caused a buyer or seller of real estate to make a different decision with regards to remaining in a contract, or to the price paid or received.” The more a seller discloses up front, the more protected they end up being from future litigation.
Advice For A Seller
Keep in mind, as a seller, just because you disclose a defect does not mean you are obligated to fix or correct it. The purpose of a Seller Disclosure is to eliminate surprises for the buyer and ensure they are buying the property completely aware of the condition it is in.
Advice For A Buyer
As a buyer, it is always wise to view disclosures as soon as possible before investing too much time and effort on a property that may or may not be what you are looking for.
If you want to know more or have specific questions, feel free to contact me anytime!
