3 Seller Disclosures You Don't Want to Forget

As a home seller, it's crucial to understand the significance of including key seller disclosure points and ensure no detail is overlooked. Selling a property involves numerous considerations, from setting the right price to staging the home for viewing.

However, seller disclosures often take center stage amidst the hustle and bustle of the home selling process. While some disclosures may seem obvious, others may slip through the minds of home sellers, leading to potential complications.

Among the critical aspects of selling a home are the disclosure points, which are legal documents that reveal any known issues or defects with the property. Today, we will explore the critical seller disclosure points that home sellers must remember to ensure a smooth and transparent transaction for all parties involved.

Key Takeaways

Seller Disclosure Points Which Home Sellers Should Not Forget

Home sellers should include the following points in a disclosure document:

1. Seller Disclosure Of Property Defects

   The disclosure of property defects is a critical document in property dealings, as it meticulously outlines any known issues or defects with the property. While many home sellers are diligent in disclosing major structural problems or significant damages, several areas within this disclosure warrant closer attention.

   Moreover, one often overlooked aspect is the disclosure of past or present pest infestations. Whether it's termites, rodents, or other pests, their presence can substantially impact the property's value and safety. Home sellers must disclose any history of infestations and provide details about treatments or repairs undertaken to mitigate the issue.

   Furthermore, home sellers should ensure comprehensive disclosure of any maintenance-checklist--'>HVAC system issues. Malfunctioning or outdated heating, ventilation, and air conditioning systems can incur hefty repair costs and significantly affect a homebuyer's decision. Therefore, home sellers must disclose HVAC system issues and provide information on maintenance or repairs conducted.

   Beyond these common disclosures, home sellers should also consider disclosing any history of water damage or flooding resulting in mold growth, structural issues, and potential health hazards. Any issues related to the property's foundation, plumbing, electrical wiring, or roofing should be thoroughly documented and disclosed to potential homebuyers.

2. Seller Disclosure Of Environmental Hazards

   Another critical disclosure often overlooked pertains to environmental hazards. While some home sellers may be aware of these hazards, they may not fully grasp the legal implications of non-disclosure.

   Moreover, lead-based paints, prevalent in older properties built before 1978, pose a significant health risk, particularly to children. Federal law mandates home sellers to disclose any known lead-based paint hazards and give homebuyers a lead disclosure pamphlet.

   Similarly, mold infestations can compromise both property integrity and occupant health. Home sellers must disclose any past or present mold issues and detail remediation efforts.

   Furthermore, home sellers should know the property's underground storage tanks, asbestos insulation, or radon gas. These substances hold severe health risks and legal liabilities if not disclosed to potential homebuyers. Therefore, home sellers must conduct thorough inspections and assessments to accurately identify and reveal any environmental hazards.

3. Seller Closing Disclosure

   The seller closing disclosure represents the final financial summary of the real estate transaction, detailing the sale price, closing costs, and other pertinent expenses. While home sellers may be well-versed in the closing process, specific aspects within the seller closing disclosure demand careful consideration.

   Moreover, one critical aspect of the seller closing disclosure is the inclusion of home seller concessions or credits. These concessions, agreed upon as part of the sales contract, encompass funds the home seller allocates toward the homebuyer's closing costs or other expenses, such as property repairs or upgrades.

   Therefore, home sellers must ensure that all agreed-upon concessions are accurately reflected in the seller closing disclosure to avoid disputes or delays during the closing process.

   Furthermore, home sellers should carefully review the prorations section of the seller closing disclosure, which outlines the division of expenses between the homebuyer and property seller, such as property taxes, homeowners association fees, and utility bills.

   Any discrepancies or inaccuracies in the prorations section of the seller closing disclosure could lead to disputes or financial complications, emphasizing the importance of a thorough review of the seller closing disclosure document.

Parting Words

The successful sale of a property hinges on a transparent and comprehensive disclosure. While some disclosures may seem straightforward, others may be easily overlooked but are equally important in facilitating a smooth transaction.

As you prepare to sell your property, remember the importance of seller disclosure of property defects and environmental hazards and the seller closing disclosure.

Let’s ensure you provide the necessary seller disclosure details before closing your home sale deal!

FAQs

1. What happens if I forget to disclose a property defect in a seller disclosure?

Forgetting to disclose a property defect can lead to legal complications and potential lawsuits from homebuyers. It's essential to disclose all known issues upfront.

2. Are there any exemptions to the seller disclosure requirements?

While disclosure laws vary by state, some states may have exemptions for specific properties or transactions, so it's crucial to consult a real estate attorney for guidance.

3. What should I do if I discover a new issue with the property after completing the seller disclosure?

If you discover a new issue with the property after completing the disclosure, you should promptly notify your real estate agent and update the disclosures accordingly.

4. Can I provide additional documentation or reports to supplement my seller disclosure?

Additional documentation or reports, such as inspection reports, repair receipts, or maintenance records, can help support the information in the seller disclosure.

5. Does Texas require a seller's disclosure?

Yes. Seller disclosures are required by Section 5.008 of the Texas Property Code for all sales of single-family homes. It comes with a disclosure script you can follow to ensure compliance.