Blue Ridge Real Estate

Disclosures - What are they?

Disclosure is the legal obligation to disclose pertinent information about the product being bought and sold, and all the terms of the sale. Most pertinently this speaks of all such information known by the seller which might be thought to induce the exchange in question, and all that affects both the desirability and value of the property, most especially those which may not be so favorable to the party needing disclosure. These disclosures are addressed differently according to the laws of each state, but the basic requirement is to openly disclose such information and in such manner as the average non-real estate professional can understand.

Because it is the seller who has familiarity and control of the product being exchanged, and because some of this information is accessible to no other party to the transaction, it is he to whom this responsibility accrues in the strictest manner. The agent, though he is generally working for and being paid by the seller, nevertheless has a fiduciary relationship with both buyer and seller. It is incumbent upon him as the real estate professional to urge full disclosure of all pertinent data and to work toward that end. However, in the end it is the seller to whom this responsibility applies most.

There is of course a long list of disclosable information: First on the list would be all such latent defects, or those not readily visible to inspection, whether the property is in violation of local codes in one fashion or another, and whether or not all such permitting has been done. Examples of this would be the condition of the foundation and slab since that is as difficult a matter to determine as any; the major mechanical systems in the house (heating and air conditioning), plumbing and wiring if known, especially that which is behind sheetrock or under the slab, or the existence of septic tanks and fields, past problems and likely condition.

Also in question are municipal water supplies, public and neighborhood nuisances or disturbances which would be of deleterious interest to the prospective buyer especially if the neighborhood has been particularly susceptible to burglaries in the past, or amenity limitations such as electric tower radiation causing poor reception on radio and television, or restrictions on the use of the property by either zoning ordinance or local property association. And one that is on the books of most all states is the requirement on the part of the seller to disclose if there has been a violent death in this home in the last two to three years.

The seller must also disclose if part of the property is an easement or if they have knowledge that is will soon be seized by the city for city purposes.

Note, however, sellers are under no moral or legal obligation to disclose any information beyond these things, such as whether or not they have other offers on the table or the terms of these offers. That information is in no way required to be disclosed.

In few instances is the golden rule more applicable than with the need for full disclosure, and numerous lawsuits have resulted from its neglect. It would be most advisable that both parties to the exchange would explore the local and state laws that pertain to this subject before full consummation of the purchase of the house. In some states there is a requirement whereby the owner of the property must present to the prospective purchaser a formal real estate disclosure statement. In such instances the real estate agent will so advise the seller and guide him through this process.

What items might be expected on this real estate disclosure form?: Basically it is a checklist detailing foundation, framework such as joisting and rafters, exterior siding, roof and roofing integrity, doors, windows, floors, etc. and then outside the house in auxiliary buildings or other improvements, wells and their relationship to septic systems, driveways, sidewalks, fencing etc.