Real Estate Disclosures When Selling

You’ve officially taken the first step and listed your home for sale! Now comes the time to invite viewers to take a closer look at the house. While you’ve definitely cleaned up, you know there might be some hidden flaws. Also, as you know, you’ll be required to disclose any major issues with the home. 

If you don’t declare these underlying problems, you might be liable for legal action in the future from the new homeowner. And if you, the seller, lied on a property disclosure statement, that would be a fraud. 

But what exactly do sellers need to declare when selling their homes? And what are disclosures? 

What are disclosures?

A seller’s disclosure document is a legal form where the homeowner answers a series of questions about the property. These are all about the condition of the home, if anything, to their knowledge, is damaged, doesn’t work, or broken. 

The top line features listed are the foundations of the house, skylights, the plumbing, pool (if it has one), heating, ventilation, and air conditioning.

Each state's requirements differ. Some will require you to disclose problems with the land (ground) while others just need clarification on the structure. 

In some states, you’re not allowed to fill out this property disclosure form in the presence of your realtor. So, if you want any assistance you’ll need to contact a real estate lawyer. 

But what exactly is in this form? 

What has to be disclosed when selling a house?

A real estate disclosure form is a very important document. It provides details about the property’s condition that might affect the value of the home negatively. 

There are some common real estate disclosures to be aware of. These include:

Death in the residence  

While it may seem odd, there are individuals out there who are very superstitious. If to your knowledge, someone has passed on in the home, you might be required by state law to disclose it. 

This varies from state to state and would be worth your while to ensure what your state’s laws on the matter are. If you are wondering, “Do you have to disclose a death in a house?” The answer is, it depends on the state. But we recommend you do. 

Neighborhood nuisances   

When we refer to a nuisance, what we’re implying is that there are no noise and odor issues surrounding the home. This would include being situated close to an industrial area, or a factory that emits odors.

If it affects the quality of the life of the new owner, you should share this information. 

In certain states, it is listed on the form and it is worth your while making sure what the law in your area is. 

Disasters

There are homes situated in the direct line of disasters. Like floods and tornadoes. If your house has an increased risk of being damaged by these events, you are required to disclose this to the buyer. 

Depending again on your state’s legislature, this can also vary. 

Homeowners’ Association (HOA)

The potential new owner of the home should be informed that the house is governed by an HOA. Most HOAs usually request a monthly fee to be paid by homeowners as well as other rules which form a part of the membership. 

If potential buyers are not informed that the home is a part of HOA, they can take legal action against you. You will also be required to provide the buyers with the financial health of the HOA. 

Large repairs

If you have made any major repairs, you should share this information. Buyers need to know the home’s history as they can hire professionals to double-check problem areas. Also, they need to know if there is a warranty on the work completed. 

This can include electrical, plumbing, and HVAC work. 

Water damage

If the seller didn’t disclose water damage, they could be in for a world of legal pain. If water gets in where it shouldn't, it can leave long-lasting damage. 

Water damage can cause rot and mold. The latter of the two issues can be a health hazard. If you have any knowledge of water damage, it is always in your best interest to disclose the information. 

Other Disclosures

There are loads of disclosures you can make. It’s for this reason some states do not have a standard disclosure document but instead stick to a Caveat Emptor or Buyer Beware rule. This states that the buyer is totally responsible for figuring out issues with the home. 

Other issues you will want to disclose can include, is the building historical? This would mean special permission is required to complete renovations. Or another is if there is an insect issue in the home. 

You might have a home in a uniquely zoned area, such as it is in a dual residential and industrial area. If so, you should disclose this to the new potential buyer.

As we’ve mentioned that every state has its own disclosure requirements, let’s look at those in Virginia, Maryland, and the District of Columbia. 

What you need to disclose in Virginia, Maryland, and the District of Columbia

As we’ve mentioned multiple times in this article, each state has its own set of requirements when it comes to a seller’s property disclosure statement. We’re going to focus on the main areas that House Buyers of America operates in. 

Starting with our nation’s capital. 

District of Columbia

In the District of Columbia, the seller is required by law to provide buyers with a property disclosure form. This doesn’t include estate sales and foreclosures, as the seller has no real hands-on experience with the property.

This form will list the current condition of all major systems that we’ve spoken about and include the following;

• Age and material of roof

• Fireplace and its chimney

• Basement

• Walls and floors

• HVAC

• Fixed appliances

• Exterior Drainage

• Any damage to the property

• Pest infestations

• Environmental hazard materials and substances

• And whether property has a historical status

You can get a more comprehensive list here. 

Virginia 

In Virginia, it is a very different story. Sellers in the state are generally not legally obligated to disclose anything. Virginia is a buyer's beware jurisdiction. This means most properties in the state are exempt from a full property disclosure during transfer. 

The state uses this disclaimer to confirm sellers make NO representation of the following: 

• Home’s condition

• Area nuisances

• Historical district ordinances

• Resource protection areas

• Sexual offenders

• Water and flooding issues

• Conservation or other easements 

• Solar devices installed

• Defective drywall

• Pending building or zoning violations

This being listed, if there are defects in the materials, the seller must provide a written disclosure before the contract is executed. You can read more here. 

Maryland 

In the state of Maryland, things change again. If you are buying or selling a residential home, the seller has two options. The first is to disclaim, which means the seller is completely unaware of any issues with the property. 

The second option for sellers in Maryland is to complete a document that adheres to the Maryland Property Disclosure Law. The seller needs to provide details on the state of the foundation, basement, roof, structure, HVAC, water, etc. Also, they are required to answer questions about any hazardous materials on the property, if there are zone violations, also if the property has an HOA. 

If you’re required to take the second route, you will need to include the following in your report: 

• Foundation

• Basement

• Roof material and age

• Structural system

• HVAC

• Smoke detectors

• Garbage disposal

• Septic System

• Water supply (is it from the municipality or a well)

• Insulation

• Drainage 

• Infestations of insects

• Hazardous materials 

• Reliance on the combustion of fossil fuels for heating, water, or clothes dryer 

• Conservation or wetland area, flood zone, Chesapeake Bay critical area, or designated historic district

If you’re able to say you’re certain these aspects are in order, all you need to do is fill out page 4 here. And if you have issues you want to highlight, fill-in pages 1-3 on the same form. 

This can be overwhelming, considering that you’re not an expert and this could mean you’d be liable for legal action in the future if you get it wrong. If you live in the Maryland, Virginia, or the Washington DC area, why not sell your home for cash and not worry that the buyer will sue you. 

We buy houses for cash!

At House Buyers of America, we buy houses for cash. This means we can act quickly and buy your home “as-is”. House Buyers of America will buy any home at a fair price in any condition. 

All you need to do is to give us a call at 855-659-3289, or you can use our online form to get started! Our Real Estate Consultants are ready to assist you!

And as the perfect buyer for your house, we’re going to give you a fair cash offer on the phone within ten minutes. 

House Buyers of America will handle all of the paperwork and we’ll do it quickly if you’re ready to sign on the dotted line. 

And once you’ve signed the contract, you will see the cash in your account in a matter of days. 

Currently, House Buyers of America will buy homes in  Washington DC, Virginia, Maryland, and all throughout the Mid-Atlantic.

But why House Buyers of America? 

Why select House Buyers of America?

Since 2001, House Buyers of America has been in the business of buying and selling homes.  We bring our experience and customer service records to the table. 

This means our staff is able to assist with nearly every situation because we’ve been there, bought and sold thousands of houses.

Give us a call if you’re looking for a buyer to purchase your home within 10 minutes!