Sneed Company Realtors
6645 Stage Road
Memphis, TN 38134
Phone: 901.372.4667
msneed@sneedcompanies.com

 


Disclosure:
What Sellers Need to Know

States are cracking down on sellers' obligation to disclose known material facts about properties for sale—especially conditions not readily apparent, such as a cracked foundation. A material fact is anything that could affect the sale price or influence a buyer's decision to purchase a home.

The major cause of post-sale disputes and lawsuits involve defects and disclosure. Most disputes can be avoided if proper disclosures are made.

Learn the Law
The statutes governing seller disclosure obligations vary:

State laws
Most states require some form of seller disclosure. The form of disclosure also varies: Some states require a seller to complete a questionnaire about their property's condition; in other states, disclosures can be made verbally. In some states, seller disclosures are voluntary. The only sellers excluded from disclosure laws are banks and mortgage companies with foreclosure properties.

Federal and local laws
In addition to state mandates, some local and federal laws require sellers to make specific disclosures. Federal law, for example, requires sellers of homes built before 1978 to disclose any known lead hazards.

Real estate company requirements
Some major real estate companies require prospective sellers to complete a disclosure form before listing their property.

TIP:
A fact that is material to one buyer may not concern another. If you're wondering whether something should be disclosed, consult your real estate agent or a property attorney. Ask yourself if you'd want to have the information if you were the buyer. If the answer's yes, then disclose.

Disclosure and Property Value
The disclosure of a defect can influence the sale price of your home; the level of influence depends on the market, the size or significance of the defect, and the buyer's comfort level. For example, in a highly desirable neighborhood or in a seller's market with many listings, you probably can sell your home at prevailing prices, even with a leaky roof. However, in a buyer's market in an average neighborhood, A buyer might expect you to lower your price or make the needed repairs.

Defects as Deal Breakers
Homebuyers frequently back out of real estate deals when their home inspection reveals a problem. To avoid the prospect of failed deals and the inevitability of having to disclose a newly found defect, have your property inspected before you put it on the market.

RETURN

©2014 Sneed Company Realtors