The home buying process can be complicated, especially if you are on the selling end of the transaction. While some sellers might think that the process is as simple as posting a "for sale" sign in the front yard, there are a number of legal aspects you will need to consider.
One of these aspects that can get you into trouble if overlooked is the information you are legally required to reveal to a prospective buyer. If you conceal any issues with the property, it could come back to haunt you one day in the form of a lawsuit. With this in mind, MSN Real Estate has advice on the things you may be legally required to disclose.
Repairs
If your home needs any repairs, you must tell the buyer about these issues. This can range from a crack in the foundation to a pipe that gets regularly clogged. To keep yourself covered, it's recommended that you get an inspection done on your property to make sure there aren't more problems with your home than you are aware of.
Meanwhile, if you have been good about making regular repairs to issues over the years, you should tell a buyer about any of these fixes you've made in the past, even if the problem is resolved. This way if a problem arises in the future with a past repair, you won't be held legally accountable.
Termites
If your property has a recurring issue with termites, this is definitely something a buyer should be told about. A termite infestation can have a significant impact on the overall value of your home, even if it occurred years earlier. To lessen the impact of this information, it's advised that you get a termite inspection done on your home prior to listing it for sale. This can give prospective buyers the peace of mind they need to want to purchase the property.
Water damage and mold
Damage as a result of excessive moisture is a major reason for disclosure-related lawsuits, so make sure you inform a buyer of any problems in this area. A leaky roof or a basement that regularly floods are both problems that should be brought front and center, since these are issues that can cost a large amount of money to fix.
Meanwhile, water damage, especially if you don't know about it, can lead to mold, which can damage a property's overall value and be a serious health concern. Even if you have treated your home for mold in the past and successfully covered up the evidence with paint or plaster, a good home inspector should be able to pick up on this, so being honest about it is recommended.
Lead
If you home was built prior to 1978, there's a chance that there is a lead-based substance somewhere on the property. The presence of lead can be such a health hazard, especially to young children, that you are federally required to inform a buyer of this issue. If you withhold this information, a buyer is allowed to sue you for three times the amount of damages suffered. With this in mind, you should protect yourself by revealing this information from the get-go to avoid any future lawsuits.
While the disclosure of lead substances is a federal mandate, other information can vary from state to state. Contacting a local real estate attorney or checking with your city planning department for information can help you find out what you are legally required to disclose to buyers.
