SolveYourProblem
Real Estate Article Series
Laws of Property Disclosures
If you’re considering selling your home with
out the use of a realtor, then you need to understand that
there are conditions backed by laws of the state and federal
government governing the sale of your home. By following
the rules and regulations you will save yourself money, time
and
later possible unpleasant legal ramifications. All of these
conditions must be investigated and settled before you attempt
to advertise your home for sale. Ideally make sure you understand
first the full responsibility of selling your home independently
before you place your home on the open market, and realize
that this is the first step in the process of home selling.
Most states in the US require that if you’re selling your
home whether through a real estate agent or as a FSBO (For
Sale by Owner) you must give to a potential home buyer
a Seller Disclosure of Property Conditions form. This form discloses
information about your property that would affect the living
conditions or the resale able value of the home. Disclosure
of property conditions includes any past or current problems
with the property. Check out the different categories of property
disclosure, and make sure that you list the necessary information
required under each one. This list may or may not include issues
that you would need to be concerned about, so make sure to
check with your state and local agencies for complete information.
House
Systems – Includes areas such as plumbing, electrical,
appliances, doors and windows, security system, pool, sprinklers,
sump pumps, cooling and heating.
Foundations/Structures/
Basements – Includes leaking and repair
issues and drainage problems surrounding the house.
Roof
– Includes age, leaking and repair issues, second and
new roof installation, time frame of roof repairs, and when
or how often the roof leaks.
Land/Drainage
– Includes soil permeability issues such as
drainage or flooding problems, or are there any other water
sources such as a lake, spring or creek.
Boundaries
– Includes survey issues such as boundaries of
property line, markage of known property lines by what means,
such as moveable property stakes as rocks or trees. The allowable
property easements for your area, as well as any other obstructions
to property such as encroachments by other property owners.
Water
– Includes source of water and water pressure issues,
and purification systems and tests conducted on water quality.
Sewer
System – Includes how property is serviced for sewage
waste, such as septic, public utilities or cess pool. Dates
of inspection and known sewer problems.
Construction/Remolding
– Includes information on any new buildings or remolding
to existing structure, and the necessary building
permits.
Homeowner’s
Association – Includes information of any homeowner’s
association rules and guidelines.
Miscellaneous
– Includes many areas to numerous to list, but
some areas of information encompasses testing for radon gases,
termite damage, abandoned under ground storage areas such as
septic tanks or cisterns. Issues such as warranties, legal
actions, or weather related damage such as tornadoes.
Just as important as you’re state and local laws is the federal
laws that regulate selling your home. Two issues of
primary importance are disclosing lead paint and the conformity
to
the fair housing laws. According to federal law you must disclose
if your home was built or remodeled before 1978. This law was
passed and is now enforced by the EPA (Environmental Protection
Agency) because of test results that show that lead based paints
can cause detrimental affects on human health, especially in
babies and small children. Lagging mental function and stunted
growth can occur if sufficient amounts of lead based paints
are consumed or particles inhaled. Disclosure of test results
and the opportunity to test is federal law. Also, fair housing
laws require adherence to the selling of your house, although
if selling as FSBO the regulations are a bit more lax. The
Fair Housing Act, under the Civil Rights Act of 1968, requires
that sellers may not discriminate when selling a property.
Discrimination is not allowed based on race, color, national
origin, religion, sex, familiar or handicapped status.
Another area to consider before you advertise your house for
sale is how to weed out the lookers among the potential
serious buyers for your home. Many FSBOs can request that buyers become
pre-approved by a financial institution before a bid will be
accepted. During the home tour you can set parameters too by
inquiring on the buyer’s ability to quickly obtain financing.
You might not want to wait while they must sell their house
first in order to buy your house in a timely manner.
Sticky decisions concerning the contract should fully spell
out the conditions of the sale, such as any deposits that are
required and the ability of the buyer to have their deposit
returned. Protection is provided to both when a contract is
clearly written for both parties, as for example the ability
of you to keep any monies from a buyer that backs out because
of an unjust cause. Always make sure to consult an attorney
when writing up your contract to sell your home. Remember too
that laws fluctuate from state to state and being prepared
is the best defense against an unsold home.
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SolveYourProblem.com : 2007
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