Disclosures

Just about every home seller in the U. S. must provide potential buyers with a Disclosure of Property Condition Form. Owners who are selling houses built prior to 1978 are required to produce a Lead-Based Paint Disclosure form as well. Disclosing the condition of the property to a prospective buyer protects both the seller and the buyer. The buyer, by signing the disclosure, acknowledges the condition of the house and can't later complain about defects listed on the form. The disclosure form should cover the overall condition of the house as well as the condition of the appliances and other components. In the 'overall condition' of the disclosure form, the seller covers areas like the basement/foundation, roof, well, pump, septic system, sewer system, heating systems, plumbing, and electrical systems, and any information about groundwater contamination. This form also covers the presence of asbestos and radon. Asbestos is usually present in the furnace insulation and duct work of older homes. It is now a suspected carcinogen. Radon is a colorless, odorless gas that is known to cause serious health problems, including lung cancer. Naturally, buyers would want to be aware of the presence of either of these substances in a home they're about to buy Sellers also need to tell a prospective buyer about the range, refrigerator, dishwasher, alarm system, pool heater, wall liner, sump pump, and fireplaces and chimneys. If the appliance or the component isn't going to stay in the house, its condition is of no consequence to a buyer, and does not need to be disclosed. Items that remain in the house need to have their condition assessed as accurately as possible. You should indicate 'unknown' when you're not sure of the actual condition of a particular item. You may know that the roof shingles are 15 years old, and that the roof does not leak, but unless you've been up on the roof recently and can report that the shingles are in great shape, 'unknown' should be indicated. To assume that the shingles are in good condition is not a good idea. Lead-based paint was often used in properties built before 1978. It is now known that children are at risk for lead poisoning because of lead-based paint, and so its presence must be disclosed. If the seller knows there is lead-based paint in the house, and has reports on the matter, the buyer may inspect the reports. The buyer will acknowledge receipt of copies of the information and/or reports, and then has the opportunity to conduct a risk assessment on how to rid the house of the lead-based paint. Honesty is the best policy when it comes to disclosures. Be up front and truthful. Semantics might be helpful in avoiding the disclosure of something potentially negative, but could end up getting you sued. If you don't know for sure about a particular area, say 'unknown.' Disclosures not only offer the buyer awareness and peace of mind, but extend protection to the seller as well. If you aren't clear on any item, talk to your real estate professional on how to answer.   Copyright 2004 PropertySource Network

 

Jeannie Hamilton
ABR, CRS, e-PRO, GREEN, GRI, SRES
Broker/Owner

Hamilton Properties
1100 Deer Trail Road
Boulder, CO 80302-9437

Office: 

Cell: 

Email webmaster@jeannierealtor.com with questions or comments about this website.

Copyright © 2012 Jeannie Hamilton, Inc

Page Last Updated: January 24, 2012