What Needs to Be Disclosed to a Real Estate Agent When Selling a Home?

In the current real estate market, many homeowners are looking to downsize. The pandemic has affected many homeowners’ sense of financial stability and diminished their confidence in being able to make their mortgage payments. For homeowners who are eager to sell their homes quickly, it may be tempting not to disclose information that may influence the sales price. 

However, is it worth the risk? Non-disclosure can result in termination of a sales offer or even damages against the seller and real estate agents involved. 

Real Estate Disclosure Requirements

If you are selling your house, you must understand the disclosure requirements of your state. Local laws differ in their disclosure requirements, and some even have loopholes. 

In California, a seller of any single-family real property subject to the law is required to complete a Transfer Disclosure Statement (“TDS”) as soon as “practicable” before transfer of title. (See Cal. Civil Code Section 1102, et seq.) If an item is checked off, supplemental facts should be provided to the prospective buyer in the space provided.  However, a seller is expected to disclose only “material” defects or facts. “Material” in this sense simply means something that is important for or determinative in the buyer’s decision to purchase the home. This puts the buyer on actual or inquiry notice related to the property’s condition. It is always important to disclose more facts about the property, if possible.

Property sellers should consult with a real estate attorney to understand and disclose exactly what is required to potential buyers and real estate agents. Even if the law does not directly require sellers to make disclosures, the law may still require real estate agents to disclose relevant information and materials about the property to potential buyers, in accordance with fiduciary duty. 

Toxic Hazards 

Although disclosure requirements are governed by the states, the federal government mandates that lead-based paint must be disclosed on any property constructed before 1978. Water damage

Plumbing leaks and flooding problems can compromise the integrity of the house and lead to mold growth. There are many risks in buying a home without a home inspection, as water damage may be undetectable during warm seasons or dry spells.

Pests and historic districts

If a home is in a historic district, potential buyers should be made aware, as this can increase the cost of repairs and maintenance.

Homeowners’ Association Rules & Fees

Associations that govern and charge monthly fees on homeowners can impose rules through their membership that a prospective buyer might not find acceptable. A lack of knowledge about these rules and fees can rack up and become the new owner’s unforeseen burden; sellers may be then sued for not disclosing that a home is governed by a homeowners’ association. 

Death

Certain states have laws that require disclosure of a property’s history of death, suicide, or murder. While these may not affect the property’s physical condition, some local laws require disclosure for a property that is believed to be stigmatized or haunted.

Disturbances

Some states require sellers to disclose noises or odors from commercial, industrial, military sources surrounding the property, or from nearby farms, landfills, airports, or shooting ranges.

If you have questions about what you need to disclose to potential buyers or real estate agents, call San Diego Real Estate Lawyer Christopher Villasenor to help you with next steps.

Call Us Today: 619-375-2956
Email Us: chris@sdlawfirm.net

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