For Sale By Owner Property Disclosures and You
Filed Under For Sale By Owner |
As a for sale by owner home seller, you are responsible for completing many of the steps that a real estate agent would typically handle for you. Most likely you’ve already fixed up the interior and exterior of your home, set a reasonable asking price for your home, and have begun advertising your home for sale.
Now you’re ready to accept an offer on the home, right? Well, not quite. Before you begin entertaining offers from prospective buyers, you first need to prepare property disclosures.
Property disclosures for a for sale by owner home includes the Real Estate Condition Report. This is information that pertains to the property’s condition or location. Examples include information like the age of the property, issues with the property, and easements that might extend beyond property boundaries. Any of these facts could affect the buyers decision to purchase the home and must be disclosed.
You are required to fill out property disclosure forms about your home. If you are not sure what property disclosures you have to give you can consult a real estate professional such as an agent or an attorney. These professionals are well versed in real estate law and can give you guidance on the necessary information to give your buyers. You can also contact me as well and I’d be happy to answer any questions you may have.
Another example of a property disclosure that you must complete is the lead-based paid disclosure if your home was built prior to 1978. This is a property disclosure that is required by federal law and must be provided regardless of the state where you selling your home. With this property disclosure, the buyer is given 10 days to conduct an inspection for lead based paint. You could face a lawsuit if this is not done and the buyer later discovers that the home indeed has lead paint.
Buyers must also be given material facts. This is any information about the home that would affect the buyer’s decision to purchase or the price they would offer for your home. You are required to tell buyers any defects about your home, especially if these defects could potentially cause the buyer not to ultimately complete the purchase of your home. At first thought, you might be cautious to reveal this information because it could cost you a sale; but consider the alternative of being sued for thousands of dollars because the buyer was negatively impacted by a material fact that you were required to disclose.
While it might not first seem like it, property disclosures are designed to protect both the buyer and the seller of your for sale by owner home. Buyers are given all the facts they need to make an informed purchase decision. Sellers are protected from lawsuits by buyers that claim they were not informed. You should keep a record of property disclosures given to your buyers, especially the buyer that ends up closing the deal.
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