Full Disclosure
Definition of "Full disclosure"
In a broader sense, Full Disclosure means presenting all information (significant or not, classified or not) related to a certain matter.
In Real Estate, the term “Full Disclosure” can be used in different situations… it can be used as a requirement for a lender to disclose to borrowers the effective cost of a loan; its terms, conditions and all the fine print. But also, and more commonly, to refer to a requirement a real estate broker – or a home seller going the For Sale By Owner (FSBO) route – has of providing all known information about the condition of a property - its structural flaws, its average energy consumption, its blueprint etc. – to the home buyer. If after the sale the home buyer discovers information discrepancy both the real estate broker and the former homeowner are eligible to get sued for not giving the full disclosure.
That’s why the services of a home inspector are so important. It becomes his/her responsibility to disclose all the problems of the house. Any liability becomes his/hers.
There are disclosure forms so no one says “but how would I know I had to look for that?”. There are federal disclosure requirements but also, because every locality has its own characteristics, state disclosure requirements.
Real Estate Tips:
Full disclosure? Find a real estate agent because without them everything becomes much more difficult!
Popular Real Estate Terms
Agreement between the seller and buyer involving the terms of sale. ...
Some real estate sales require court confirmation of purchase to protect heirs and debtors from financial wrongs. These sellers have to sell their property due to unique circumstances. They ...
A financial obligation comes in several ways. In general terms, the meaning of liability refers to the amount of money an individual or company owes to a lender. We define the party holding ...
Tax credit aimed at encouraging the conservation of natural resources, as well as the development of alternative resource. ...
Placed by the federal government on a individual's real property for federal estate tax or income tax law violations. In the case of a federal estate tax lien, upon the owner's death, the ...
A clearly stated notice that an owner or operator will not assume responsibility for an inherent risk. For example, at a parking garage, a large notice of nonresponsability clearly states ...
The logical definition of both words is almost enough to understand what is earnest money. Money is a form of exchange between people to assert value to something and Earnest equals ...
Another residence in addition to the main residence where a person or family resides. An example is a second home out of the city used on weekends and during vacations. Interest and real ...
Taxable profit or loss arising from a sale. It is reported in the income statement. ...
Have a question or comment?
We're here to help.