Saturday, September 22, 2007

Disclosure – Why You Should Disclose or Risk Getting Sued

I believe the #1 reason why buyers and sellers end up suing each other is because of disclosure. As a home-seller, you’ll want to keep in mind that if there is anything that would affect the salability of the property, it’s important the buyer knows.

Here are a few things that would affect the value of the property:
1. Leaky roof
2. Mold
3. Galvanized pipes
4. Fire or water damage
5. Death on the property
6. Outdated Kitchen & Bathrooms
7. Old carpet

Keep in mind that your agent is a trusted advisor. Please do not keep any information from your agent which knowingly can be financially damaging to all and do not plead ignorance. During the transaction process, there are many forms which will filled out concerning the house in general. One form is called the “Transfer Disclosure Statement (TDS).” This form is filled out by the seller and asks various questions concerning the property.

Some agents/brokers will also have additional forms in-case specific questions are not asked on the TDS form. If you should not understand a specific question, please consult with your agent. On occasion, a buyer will have questions of their own.

As a buyer, you’ll want to do your due diligence and perform a home-inspection by a qualified general contractor who is also CREIA Certified. A company I have used in my home-inspections is Larocca Inspection Associates. Your inspector will note specific issues which then you can hire specific professionals who can offer their advice and cost to get it fixed. Don’t purchase any property without it first being inspected.

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