Seller Disclosure
The seller disclosure is a statement made in good faith regarding the condition of the home he/she is trying to sell. There is a seller disclosure form – called “Form 17” - that is required by most states in the USA and, in it, the home seller must make it known to the home buyer any known structural defects like plumbing and electrical problems, and any history of problems with flood, sinkholes or other prior relevant damages to the property and its land.
Although deliberate misrepresentation within this statement can result in liability charges, the seller disclosure is not a substitute for a home inspection, nor warrants anything.
The contents of a seller disclosure can vary from state-to-state - sometimes from county to county! - but a typical form 17 contains information about:
- Structural, electrical and plumbing status of the house
- Title of the home and any ownership problems
- Hazards like lead paint, toxic mold, asbestos, radon etc.
- Water sources, rights and contamination
- Flood danger and previous flood damages
Most of these forms have questions for the home seller to reply to or boxes to check with “don’t know”, so it’s normal that one detail or another slips away. Plus, a lot of times you will deal with a home seller that has no “in-person” knowledge of the home. Like an investor who bought the house to flip it, so he/she doesn’t know what it “feels” like living in there and their seller disclosure might misrepresent some details of it. That’s why, like we’ve said, a home inspector is still needed to avoid nasty surprises down the road.
Real Estate Tips:
The home inspector is a must, but a good real estate agent will go through everything within the seller disclosure and will be able to point out other non-structural red flags for you too. And the place for good real estate agents is right here! Feel free to contact the one you like the most and good luck!
Popular Real Estate Terms
(1) Temporary and symbolic payment showing good faith and obligating two or more individuals until a final transaction takes place. The binder is typically returned if the final agreement ...
Opinion of a judge having no direct legal or binding effect on the outcome of a pending judicial decision. An obiter dictum is considered to be an incidental judicial remark about some ...
Metal or wood channel attached immediately below or along the eaves of a building for the purpose of channeling rainwater away from the structure. The gutter prevents rain runoff from ...
The time period a real estate investment is held. The return is tied to the time period of the investment. The period is used for income tax purpose to determine whether a profit earned or ...
Geographic area that is attractive to prospective tenants. Square footage in an office building or apartment house that may be rented by a tenant. ...
Fee charged by a mortgage lender to a buyer, seller or both for transferring a mortgage when the mortgage property is sold. ...
Rate of return of capital invested in building improvements. Is segregated from land investments and provides a method of separating property income streams between improvement and land ...
Money set aside to buy new assets when the older ones are no longer appropriate for the intended use. An example is when the landlord must replace a deteriorating and malfunctioning air ...
Contract containing provisions of the insurance policy specifying who the parties are, what amounts and due dates, deductibles, time period, ceilings, kind of property., location of ...
Have a question or comment?
We're here to help.