5 things you need to disclose when selling your home￼
A disclosure is very important for both home buyers and sellers. When an owner sells a property they are required to disclose information in a written document. The requirement will differ based on state and local laws.
A disclosure document must provide details about a property’s condition that might negatively affect its value. Selling a property “As Is” will usually not exempt a seller from disclosures.
What do I need to disclose when selling my house?
1. Pre-contractual disclosure obligations
Under the common law, the seller is responsible for disclosing defects in the property title to potential buyers. The legislation can vary from state to state, but generally, title defects include:
It’s a section of land registered on your property title. This may give someone the right to use the land for a specific purpose, though they’re not the land owner.
Covenants are an obligation that require a property owner to abide by certain rules.
In this process, the property remains under an agreement for a period of time after settlement.
The legislation can vary from state to state when it comes to zoning. For example, in Queensland and New South Wales, you must disclose if your property is in a flood zone.
2. Building consent
If any renovations are made in your property, then you should provide the necessary code compliance or building consent certificates to show all works are up-to-date and approved.
If neighboring properties have got the permit to fencing, trees or buildings that affect your property, tell the buyer your position on whether you gave or withheld consent. So they can understand the situation in case of any dispute.
3. Property defects
Almost all the states require a seller to disclose issues such as structural problems, insect infestation or problems in appliances or fixtures. So the buyers should get building inspection reports before making an offer.
4.Neighbor disputes or boundary issues
If your fence is 1 foot inside your neighbor’s property line, it may not be a big deal for you, but it can affect a new owner down the road. Even a small neighborly dispute could actually become a major one when you sell your home to another person, so it’s wise to disclose it upfront.
5. Noise pollution and other environmental hazards near the home
If there are any issues that affect the marketability of the property it needs to be disclosed, including environmental hazards near the home and other off-site conditions.
If there are waste plants and other contaminants near your area, the buyers must know. In some states, a disclosure should include if the home is located in an earthquake zone, in a flood-prone area, or if the surrounding area is prone to wildfires.
You should never fail to disclose if your living area is near by airport or railways because it could be noisy all the time.The loud noises could affect the buyer’s decision in purchasing the home.
Along with the main disclosures listed above, you must provide your buyer with any additional information about the property that may be helpful for them.