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All About Disclosure

When a house goes on the market the seller is responsible for truthfully disclosing to any prospective buyer the condition of the property as he knows it to be. In most states, and here in New York, there is a Property Condition Disclosure form that must be signed by both the buyer & seller. Therefore, it is vital that the seller do an inspection of his property and decide whether to repair anything needed, or simply disclose the defect to the buyer.

A certified home inspection will warrant the most accurate and comprehensive results, though there is a cost incurred by the seller (generally between $200 - $300). Having a home inspection is especially important if the home is older and has not been recently updated. In this case a more thorough and professional inspection of the property is most likely warranted.

Having a professional home inspection report to refer to will make the process of filling out the seller disclosure form much easier and certainly more accurate. The Property Condition Disclosure form is a potential minefield that a good inspection will help you navigate through. When a buyer encounters a serious problem after the sale and that problem is not on the disclosure form, lawsuits often result. A pre-sale inspection will help ensure that your disclosure form is as accurate as possible. If a lawsuit should arise, the inspection report could be your only defense.

Having a well researched disclosure form and a copy of a home inspection report available for buyers to review will surely make the buyer feel more confident that you have taken the steps to be honest and forthcoming about the condition of your property, and potentially ease any reservations the buyer may have about making a full price offer.

In certain real estate transactions the attorney may recommend to the seller that he not utilize the property disclosure form. If this is the case, the seller must pay a fee to the buyer at closing. This fee will ensure that the buyer cannot come back and sue the seller for any defects to the property. This scenario is common with the sale of "fixer uppers" or "as is" properties, which are sold at a reduced price and where the potential for numerous defects exists. The buyer is aware of these potential defects and has agreed not to hold the seller responsible. If you have questions about how to proceed with your particular property, contact your attorney for additional information and advisement.

Though it is unlikely, a buyer can sue for damages and it is conceivable that they could force the seller to reclaim the house. Therefore, it is important to have all of the information required when filling out the disclosure form. Be accurate and honest and close the deal right!

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