What Home Sellers Must Disclose to Potential Buyers

All home sellers can feel apprehensive about disclosing problems to potential buyers.  This makes sense as the problems in a house are typically what stops a buyer from wanting to make a purchase.  

As a result, home sellers who want their home to seem as appealing as possible may be tempted to avoid talking about these problems.  This can only lead to trouble because many problems are ones that a homeowner needs to disclose to a potential buyer.

The Federal Requirements

There are actually few federally required disclosures that home sellers must make to a buyer.  The one that every homeowner should know already is the disclosure of the presence of lead-based paint.  Homes that were built after 1978 do not need to worry about this issue but a homeowner of an older home will need to think about it.

Title X or the Residential Lead-Based Paint Hazard Reduction Act of 1992 outlines what must be disclosed.  Plain and simple, if the home seller knows there is lead-based paint they have to disclose this fact. They will provide a pamphlet about the paint and have the buyer sign a document outlining the fact they know about the paint.  This statement needs to be retained for three years and the buyers get a ten-day window to have the house tested.

State Requirements

State requirements are more extensive than federal requirements.  In general, any problem that the home sellers know about should be disclosed to the buyer.  Although it can vary from state by state as to which problems absolutely have to be disclosed without the sellers facing legal trouble.  

While going through a home sale the sellers will have a disclosure document that they need to sign and fill out.  This document will outline what is required to be disclosed within their state.  

Working with a real estate agent can make it easier for a seller to know exactly what they will need to disclose.

Some items that should be disclosed include any problems with water getting into the home, previous water damage, and the presence of mold.  If the house used to have pests or currently has an infestation, this information needs to be shared with potential buyers. Any major repairs or even claims to the insurance company are items to note even if they have been resolved.

Other Problems

A homeowner never wants to be in a situation where a buyer claims that a problem was hidden from them with ill intent. If there is a problem that has not been included in this list the homeowner should disclose it to the buyer.  Sellers should do this even though it could stop some buyers from making an offer. Doing so only helps to protect the seller if a buyer decides they have regrets about buying the home.

Any concerns that home sellers have about disclosures can go through their real estate agent.  An agent will know the state and federal requirements to help aid them in deciding what to disclose and what is not important.  A problem that concerns the the home sellers enough to ask about is likely something they need to disclose, if only to help the buyer make an informed decision.