All About Disclosures
Whether you are a seller or in the market to purchase, here is everything you need know about real estate disclosures.
What is a Real Estate Disclosure?
Disclosure statements are the buyer’s chance to learn all that they can about a property and the seller’s encounter in it.
Sellers get an opportunity to reveal anything that can negatively affect the usefulness of the building. They are required to document any known defects — whether past or present — to potential buyers. Not only are the disclosures meant to guide the customer, but they also protect the sellers in case of future legal actions.
How does a Seller Make a Disclosure?
California has some of the most restrictive disclosure requirements. The law states that sellers sign off on some documents, such as Local and State Transfer Disclosure Statements. Disclosure typically comes in the form of documents where the seller answers a series of questions about their property and their experience in it.
Furthermore, sellers are required to document communication about an existing defect that could have an adverse influence on the enjoyment of the property.
What do Sellers Disclose?
The standard disclosures include previous improvements and whether or not the work was done was with or without a permit. Buyers should counter check the disclosures presented with the city building permits and reports. Typically, operation without a license may not have been done as to the rules, which could result in a health or safety hazard. Other disclosures include leaky windows, any disputes in the property, engagement in bankruptcy proceedings and so on.
When should the buyer receive Disclosure Reports?
In most cases, the customer is presented with the documents once they accept the offer. If the purchaser learns something negative about the asset, he/she usually cancels the offer. In other markets, sellers reveal everything to the buyers before an offer. This decision is smart for both parties because it saves on time and prevents deals from falling apart once they are in agreement.
Buyers should sign off the disclosure and the inspection reports. It is crucial that buyers review them carefully and ask questions if they have to. By laying everything out, buyers can get a sense of comfort, while sellers make their home more desirable than the rest.
For more on this subject read our recent blog, “Should You Buy a House Without Seeing it First?”
Thinking of buying or selling a home in the La Jolla area? As consistent top producers in real estate, Linda Daniels and The Daniels Group are your La Jolla housing specialists. Our team of local experts will ensure that you have a successful real estate transaction. Call us today at (858) 361-5561 or email us anytime by clicking here.