Seller Disclosure
The seller disclosure is a statement made in good faith regarding the condition of the home he/she is trying to sell. There is a seller disclosure form – called “Form 17” - that is required by most states in the USA and, in it, the home seller must make it known to the home buyer any known structural defects like plumbing and electrical problems, and any history of problems with flood, sinkholes or other prior relevant damages to the property and its land.
Although deliberate misrepresentation within this statement can result in liability charges, the seller disclosure is not a substitute for a home inspection, nor warrants anything.
The contents of a seller disclosure can vary from state-to-state - sometimes from county to county! - but a typical form 17 contains information about:
- Structural, electrical and plumbing status of the house
- Title of the home and any ownership problems
- Hazards like lead paint, toxic mold, asbestos, radon etc.
- Water sources, rights and contamination
- Flood danger and previous flood damages
Most of these forms have questions for the home seller to reply to or boxes to check with “don’t know”, so it’s normal that one detail or another slips away. Plus, a lot of times you will deal with a home seller that has no “in-person” knowledge of the home. Like an investor who bought the house to flip it, so he/she doesn’t know what it “feels” like living in there and their seller disclosure might misrepresent some details of it. That’s why, like we’ve said, a home inspector is still needed to avoid nasty surprises down the road.
Real Estate Tips:
The home inspector is a must, but a good real estate agent will go through everything within the seller disclosure and will be able to point out other non-structural red flags for you too. And the place for good real estate agents is right here! Feel free to contact the one you like the most and good luck!
Popular Real Estate Terms
An upper limit on the interest rate that can be charged in a variable rate mortgage over its life. For example, a variable rate loan is initially offered at 7% loan rate, and its interest ...
Investments you can hold on to all your life or sell for a profit when they have appreciated in value. Real assets are those investments you can put hands on. Real property includes real ...
Surveyor's use of hypothetical lines to portray a properties position. North to South in the meridian line while East to West is the base line. ...
Interest rate on an adjustable rate mortgage based on the total of the current value of an index and margin applicable to the mortgage. The rate is the basis for the computation of monthly ...
Final property appraisal estimate arrived at by applying appropriate appraisal methods. ...
Involves the transfer of property from one individual to another for a consideration in the form of sale. It is the most widely used type of real estate deed with a period of bargaining ...
The real estate world features many tricky terms and concepts. One that often sneaks up on even the most experienced buyers and sellers is the "red herring." What is the meaning of red ...
Real estate, home and life insurance use numerous ambiguous terms you should know because you can significantly benefit from them. Let’s discover what the word boot usually applies to ...
Legal order for a person to present at a deposition or trial documents in his possession, such as related to a real estate transaction. ...
Have a question or comment?
We're here to help.