Full Disclosure
Definition of "Full disclosure"
In a broader sense, Full Disclosure means presenting all information (significant or not, classified or not) related to a certain matter.
In Real Estate, the term “Full Disclosure” can be used in different situations… it can be used as a requirement for a lender to disclose to borrowers the effective cost of a loan; its terms, conditions and all the fine print. But also, and more commonly, to refer to a requirement a real estate broker – or a home seller going the For Sale By Owner (FSBO) route – has of providing all known information about the condition of a property - its structural flaws, its average energy consumption, its blueprint etc. – to the home buyer. If after the sale the home buyer discovers information discrepancy both the real estate broker and the former homeowner are eligible to get sued for not giving the full disclosure.
That’s why the services of a home inspector are so important. It becomes his/her responsibility to disclose all the problems of the house. Any liability becomes his/hers.
There are disclosure forms so no one says “but how would I know I had to look for that?”. There are federal disclosure requirements but also, because every locality has its own characteristics, state disclosure requirements.
Real Estate Tips:
Full disclosure? Find a real estate agent because without them everything becomes much more difficult!
Popular Real Estate Terms
Not paying taxes legally due the government. Examples are the failure to report rental income received and claiming false deductions on real estate holdings. The penalty for tax fraud is ...
Same as term legal description: A description of real property including metes and bounds, government rectangular survey, or lot numbers of a recorded plat. All property deeds have a legal ...
Right of a property owner located adjacent to an airfield to use the airspace above a certain distance to fly an airplane. However, the owner may not be allowed to put structures, signs or ...
Cash payment to a lender so as to lower the interest rate on a loan a borrower must incur. The lower rate may apply for all or a part of the loan term. ...
In order to define the rate of return on investment, or more commonly known as ROI we are also going to explain how it can be calculated and what to look for in the return rate. Investing ...
Payment of the minimum tax by using legal tax planning opportunities such as estate planning. The use of tax avoidance strategies is a sound approach to retaining cash flow. On the other ...
A federal act requiring potential purchasers and lessees of undeveloped land be provide with all necessary information required to make an informed decision regarding the desirability of ...
Cost excluded from the minimum lease payments to be made by the lessee in a capital lease. The lessee reimburses the lessor for the lessor's expense payments. ...
When someone throws around the term “mobile home”, it almost requires further explanation to fully understand what that person is talking about. Why is that? Well, one mobile ...
Have a question or comment?
We're here to help.