Posted: April 23, 2010 By: Dave Ralston
When a homebuyer is purchasing a residential property, the seller is required to provide them with a Seller’s Disclosure Statement to detail any pre-existing conditions. Now, the million dollar question is whether or not everything in the disclosure statement is 100% true. Is it fact or fiction?
Consider that the homeowner is filling this form out to the best of their abilities. Typically, the homeowner is not a licensed contractor and cannot expertly diagnose the home’s problems. Also, the homeowner may not have occupied the property (rental/2nd home), and could only disclose issues to the best of their knowledge. On the flipside, what if the owner did live in the home for twenty plus years? They may be accustomed to lifting up and pulling out on the garage door to get it to open as an example. We call this “living with the homes warts” when a homeowner is used to the quirks and doesn’t realize they are there anymore. Yikes! But you need to put your self in the seller’s shoes to better interpret what they disclose to you on your biggest investment.
The homebuyer will have three business days to review the seller disclosure (also referred to as NWMLS Form 17 in Washington). The buyer can option out of a transaction within this time frame or proceed with no action needed. In Washington, transactions involving bank owned (REO) and new construction homes are not exempt from providing a seller’s disclosure and will typically have you waive your right to receive a completed disclosure. Truthfully, they may never have stepped foot in the property and the disclosure wouldn’t hold any merit.
Quite simply, the seller’s disclosure is a starting point for a homebuyer to making their initial buying decision. I always strongly advise homebuyers to use a qualified and licensed inspector to give an expert opinion of the home’s condition. It’s better to be forewarned of your future home’s condition rather than to attempt to prove that the seller committed fraud after the problem is yours to deal with. What recourse do you have with items on a seller’s disclosure? It’s not a part of the “purchase and sale” agreement. Translation: it is not a part of the contract or contract law. So once the transaction closes, the disclosure rights have come and gone. Be prepared, be informed, be safe by working with a real estate broker who will help guide you through the potential mine field of buying your home.
A good agent keeps you safe from harm. Like a personal body guard for the real estate transaction!
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Someone I work with visits your blog quite often and recommended it to me to read too. The writing style is great and the content is interesting. Thanks for the insight you provide the readers!
Thanks for the great compliment. I really enjoy working with homebuyers. I began sharing conversations I’ve had with clients like this one. Glad you found it helpful and if you have any questions or suggestion topics for me please feel free to send me a message.
lol a lot of of the comments visitors submit are so silly, every now and then i wonder whether they really read the content articles and reports before placing a comment or if perhaps they just simply read over the post title and publish the first thing that comes to mind. at any rate, it’s good to browse clever commentary once in a while in contrast to the same, traditional blog vomit that i often see on the internet