Buying real estate can be exciting, but it can also be risky. Making a six- or seven-figure investment requires thorough due diligence. Buyers hoping to acquire real property need to know the condition of the property so they can feel confident about affording and maintaining it. They may have a basic idea about the property’s condition after a viewing or open house, but they could overlook concerning details.
The real estate transaction process includes multiple forms of systemic protection for buyers. Typically, mortgage lenders mandate both inspections and appraisals. That process can uncover signs of issues with the property. The law also requires that sellers make written disclosures about property issues.
Sellers can provide disclosures that uncover issues that could otherwise be hard to identify before something goes horribly wrong. What kinds of disclosures can buyers rely on during real estate transactions?
Sellers must disclose actual property defects
The law is very clear that those who own real estate have a responsibility to make honest and thorough disclosures when listing that property for sale to others. The law requires the disclosure of both visible and latent property defects.
Sellers have to advise prospective buyers about foundation issues or concerns about moisture incursion. They cannot simply list the home in as-is condition or indicate that they don’t know about the property’s condition when filling out disclosure paperwork. If they attempt to avoid making disclosures, then buyers may have the right to take legal action later.
Failing to disclose known defects can be grounds for litigation. However, buyers may need to do local research in addition to having an inspection done and reviewing disclosures carefully. Technically, state law does not require the disclosure of details that might affect how people perceive the property.
The law does not force sellers to disclose deaths or suicides at the property or information about allegations of hauntings. That being said, if there are physical issues with the property, the seller has a legal obligation to inform potential buyers about those issues.
Filing a lawsuit can help buyers recoup their losses in a situation involving inadequate or inaccurate seller disclosures. The courts can award damages to the buyers or make sellers accountable for certain expenses. Those who buy homes with undisclosed defects may be able to hold sellers accountable for their misconduct.