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
Imagine someone asking you about the definition of the real estate market. At first sight, it may seem like an easy answer. But wait! Could the real estate market meaning be more complex ...
In general terms, a licensee means a person or legal entity who has received authorization or permission to perform a particular activity through another party (the licensor in our case.) ...
The Federal Reserve Bank's regulation applying to the amount of credit that may be advanced by brokers and dealers to customers to buy securities. ...
Enclosed building that stores agricultural products (hay, livestock or farm equipment). ...
The term mortgage amortization is the steady switch occurring to each mortgage payment between how much interest is covered and how much principal each month. Simply put, mortgage ...
List of business property. ...
Regulation of the Securities and Exchange Commission (SEC) establishing the criteria to avoid a private offering. For example, John wants to sell shares in an apartment house to several ...
Charge levied against property owners to finance an improvement made by the local government which benefits the homeowners and commercial businesses. Examples are sidewalks and sewers. ...
Those factors causing the movement of people, industry, and business from the central city to the outside central city areas, suburbs, and/or small cities. Elements of the dispersing force ...
Have a question or comment?
We're here to help.