When a homeowner puts their house on the market, they’ll prepare a packet of disclosures full of important information about the property.
Real estate disclosure laws vary, sometimes even on a county-by-county basis, but most sellers have a legal responsibility to tell potential buyers about past or present property issues.
Disclosures will usually specify the age and condition of electrical, water, and sewage systems, HVAC units, appliances, roofs, gutters and more. They may also reveal any repairs or upgrades made by the seller.
Sellers are usually required to provide disclosure statements within a week of accepting an offer. Some sellers even make them available during home tours. As a buyer, you should take full advantage of this opportunity to spot any red flags that could come back to haunt you.
You’ll want to get a home inspection once you’re under contract, often before the lender orders a mandatory VA appraisal for the property. But before you shell out any cash for an inspection or the appraisal, look first to the seller’s disclosure packet.
If the seller’s disclosures reveal a major issue with the home, buyers can typically bow out of the deal without surrendering their earnest money.
Details revealed in disclosure packets can also help if you’re hoping the seller will cover the cost of repairs or additional inspections before closing.
It’s a seller’s responsibility to disclose, but it’s your job as a buyer to review disclosures closely. Ask your real estate agent or an attorney if you have any hesitation before signing off on your seller’s disclosure packet.
In general, sellers have a duty to disclose any known issues that may present health or safety concerns. Since undisclosed problems could spell legal trouble for sellers after closing, many listing agents encourage over-disclosure.
Depending on state laws, sellers will disclose information about anything from lead paint to lousy neighbors. In California, for example, sellers must disclose issues as specific as a history of unpleasant odors in the neighborhood. Disclosure requirements can vary depending on where you’re buying.
Check with your real estate agent or consult an attorney about requirements in your area.
Here are some possible items to look out for:
Extensive property knowledge is required to make thorough disclosures, so sellers who have not occupied a home are exempt from standard disclosures in many cases. This applies to homes that are being sold as part of a trust; bank-owned properties such as short sales and foreclosures; and homes being sold by relocation companies.
Overall, some states are more relaxed than others in terms of what sellers must disclose.
Answer a few questions below to speak with a specialist about what your military service has earned you.
Buyers may be able to recoup repair money or damages from sellers who fail to disclose known issues. Every situation is different. You may be able to address the issues directly with the seller or through their listing agent.
Some buyers pursue action through small claims or even state court. Talk with your real estate agent or an attorney about your specific concerns and situation.
Seller’s disclosures are your first step in protecting one of the most important purchases you’ll ever make.
As a buyer, it’s crucial to diligently review seller disclosures before signing them and moving forward with your home purchase. The examples we covered here represent some of the most commonly disclosed items, but it’s crucial to research your area’s specific guidelines.
Requirements can be so different from place to place. Ask your real estate agent or attorney to go through disclosure packets with you. Take every step you can to safeguard your financial future.
VA disability pay for 2023 increased by 8.7%. The new disability compensation rates took effect on December 1, 2022. See the current VA disability pay charts, and calculate your monthly compensation.
Credit score requirements vary by lender. However, most lenders have similar criteria. Let's look at the minimum credit score for a VA loan and what lenders typically expect.