As a real estate buyer, it is essential to know the details of the property you plan to purchase considering that such an investment is no joke.
This is not just about prudence but for your protection as a home buyer so that you are made fully aware of the condition and status of the property you will be buying.

The importance of Real Estate Disclosure

A real estate disclosure is simply a document that provides details regarding the status or condition of a house. This is to ensure that buyers understand what the seller knows about the current property and gives the potential buyer the idea of what is in store for them in terms of the real estate property.

For instance, the disclosure could indicate recent renovation works such as a roof replacement, kitchen renovation, etc.

The disclosure not only provides information of what buyers can inherit when purchasing the property, but it also protects the seller from future potential legal action for failure to disclose issues that may arise that could impact the interests of the buyer.

Items covered in a real estate disclosure

Generally, there is a standard form or template provided for homeowners in the event of a sale detailing the items that should be included in the document.
While the list may vary from one area to another, the essence of the disclosure is technically similar.

Homeowner or seller information

Sellers need to include their information particular with their membership in the homeowner’s association where they reside and other requirements related to property ownership in the community or locality.
The disclosure could include boundary or road access issues, the property sharing a wall with an adjacent property, or other fixtures or features that may have been entered into by owners of adjacent properties.

Government claims or concerns

Administrative claims against the property such as county or municipal assessments need to be revealed in the disclosure. The buyer has to know if there is existing litigation or claim on the property, as well as permits that may have been placed on the property, regardless if it is with the current owner or a previous one.
Regulations in terms of claims may vary in different states, so buyers should also be made aware of these.

Environmental issues

This is a critical aspect of the disclosure that should never be neglected, especially for homes that were built before 1978 due to health issues related to lead-based paint and materials made of asbestos.
Other environmental hazards include the presence of mould, contaminated soil, defective drywall, etc.

Home structure and appliances

Information for this disclosure must include the house structure that includes the ceiling, roof, foundation, walls, windows, and passageways. If there is any damage to the structure or on major appliances such as the sprinkler, heating or cooling system, all these need to be indicated accordingly.

Presence of termites or other pests

Sellers need to disclose instances of presence or infestation of termites, fungi, wood rot, or other pests in the property for the buyer’s awareness.

Roof, plumbing, and other permanent fixtures

Any roof-related issue needs to be disclosed by the seller regardless of how minor it is such as the current condition it is in, more so if there are leaks, repairs, replacements, or anything that has been done to it, including when it was undertaken or how old the current roof is.

The same goes with the plumbing system, such as the system type or the source for drinking water. It is also worth disclosing if there have been major repairs done or if there are existing leaks or issues that the buyer needs to be aware of.

Flooding, sinkholes, etc.

Buyers need to be aware of the property is settled or have sinkhole issues. It may not be directly on the property, but in surrounding areas, since it can be a cause for concern especially for the safety and welfare of buyers.

The same applies if the area is prone to flooding or experiences a substantial rise in water level during heavy rains, severe weather, etc.

Should you need help with real estate disclosures, you can consult with your real estate agent or your lawyer especially when a buyer is new to the area, that way they are made aware of policies and regulations that apply with regards to real estate disclosures.