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
model depicting on paper what a structure physically looks like. The dimensions are draw on a proportionate basis to the real thing. An example is a scale of an existing or proposed office ...
The unadjusted basis of assets is the actual price paid for purchasing an asset without any reductions from depreciation deductions. In order words, the unadjusted basis is an asset’s ...
Giving of a promise or guarantee to the receiver to instill confidence. ...
Deed used to transfer property rights to a governmental authority. ...
The definition of the term right of way is an easement or the right of another person to pass over land owned by someone else to reach a particular destination. An individual is typically ...
Market price pf all the property prior to a condemnation proceeding. ...
Action that is beyond that allowed legally. Examples are charging illegally high interest rate on mortgages and real estate exceeding the amount permissible by legal statute, and a real ...
The occupancy ratio is the ratio of rented or used space to the total amount of space available. An occupancy ratio or occupancy rate is used by analysts when hospitals, senior housing, ...
The term actual notice is used most often in connection with property law, but the concept can also be applied in other law areas. To define actual notice, we can look at the two major ...
Have a question or comment?
We're here to help.