Disclosures
SELLER’S PROPERTY DISCLOSURE STATEMENT or SPDS are not discussed often. But they are a critical part of the home buying/selling process. You generally read about sellers property disclosure statement from a buyers point of view. The seller must realize that these disclosures are serious and legally binding.
RESIDENTIAL SELLER’S PROPERTY DISCLOSURE STATEMENT (SPDS):
(To be completed by seller): Sellers are obligated by law to disclose all known material facts about the property to the buyer.
The SPDS are designed to assist you in making these disclosures. If you know something about the property that is important and is not addressed on the SPDS, add that information to the form. Prospective buyers may rely on the information you provide.
The seller must be completely honest and disclose all known defects. Should a buyer discover a problem later and the seller did not disclose it…there may be litigation. DISCLOSE ALL!
Roof problems? No roof is great!
Here is an illustration of the possible consequences. Family buys an new home. The flooring is new but not to their taste. They pull out the flooring. They discover the slab is badly cracked. They discover the business card of the flooring contractor. They call and ask if he would install new flooring for them….they thought his workmanship was good but preferred other finishes. The contractor says he would love to install new flooring for them….oh and would they like him to repair the slabs…the previous owner choose not to. The previous owner did not disclose the problem…..there is proof he knew there was a problem. He is now liable for the repairs.