Real Estate Disclosures - What You Have to Share Legally in DFW

When it comes to real estate disclosures, both buyers and sellers often have numerous inquiries. Our guiding principle? Transparency is key. In our recent article, we delve into the legal requirements for disclosure.

Being forthright and transparent as a seller not only safeguards you against potential lawsuits but also establishes you as a trustworthy individual. Concealing defects, pending repairs, or any other issues related to the property will inevitably have repercussions. Whether through legal action or simply as a matter of conscience… if you subscribe to such beliefs.

Most real estate lawsuits occur because of non-disclosure.

So, what precisely are the legal requirements regarding disclosure? Essentially, anything that could impact the property’s value. Here are some key considerations you should address:

Issues with the land, such as drainage, bad soil, and potential for flooding. Bad soil can limit building and low-lying areas can be prone to flooding and water damage.
Foundation level and known cracks must be disclosed. If the house settles more than it already has, it could experience structural damage.
Plumbing problems, sewer issues, and leaky pipes all need to be brought to the forefront. Some of the most expensive home repairs stem from water damage.
Any problems or irregularities with the heating and cooling systems should be addressed.
If you have a problem with cockroaches, rats, ants, termites or moles, you will need to inform your potential buyer.
Have a leaky roof or missing shingles? Tell your buyer before they find out during a rainstorm.
Lead paint is a no-brainer. This disclosure is one of the most common you will see with home sales and rentals.
Are there issues that will affect the title? Or rightful ownership? This needs to be spelled out up front, not during the closing process.
You should also have documentation for repairs and insurance claims you’ve made in the past. You should be able to describe what was done and the materials used.

Furthermore, certain states may necessitate more comprehensive disclosure regarding hazard zones, encompassing flooding, earthquakes, and other environmental factors influencing the land. Additionally, in some states, it’s mandatory to disclose any violent crimes that have occurred in the home. While not every state mandates this, it’s generally advisable to adhere to this practice. Consider what information you would find crucial if you were purchasing a home for yourself!

Disclosures help a buyer learn as much as possible about a house before making their purchase.

You’re selling a wonderful home, right? Keeping information to yourself can lead to minor, necessary repairs escalating into major issues. Many properties encounter unexpected issues during inspections, catching sellers off guard. Just picture your asking price plummeting due to an unforeseen defect. Your home is a complex system with many components. Consequently, numerous sellers opt to have their home inspected prior to listing it for sale. This proactive approach allows them to address necessary repairs beforehand, reducing the potential for buyers to negotiate extensively.

Moreover, an inspection demonstrates good faith in selling. By conducting an inspection, you’re signaling to prospective buyers that you’re committed to presenting your home in the best possible condition.

Keep in mind that disclosure requirements vary from state to state. Your agent, attorney, or broker can provide you with a checklist detailing the specific requirements for your state. Review the list thoroughly and provide as much detailed information as possible, including dates of upgrades and repairs. It’s crucial to complete the disclosure form honestly and comprehensively. If you have any uncertainties, seeking guidance from a lawyer is advisable, as they can address legal matters beyond the scope of your agent’s expertise and mitigate potential liability concerns.

Remember, YOU CAN GET SUED for being dishonest.

Should you be found liable, you could be responsible for covering repair costs, legal fees, punitive damages, and in certain instances, the sale may even be revoked. It’s imperative to collaborate with a reputable professional who can provide guidance throughout the process of real estate disclosures.