Sellerís Obligation to Disclose Certain Material Conditions

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It is important for a seller to disclose various material conditions to potential buyers to avoid litigation at a later time if the purchaser discovers defects or severe complications within the property. Many of these details depend on state laws, but it is the sellerís obligation to ensure the buyer is aware of certain material conditions and facts.

When selling in various states, it is the law to disclose various material facts to the potential buyer. Even in states without these laws, there are still requirements in disclosing various details about the property. Whether the seller must disclose all facts or the already known issues, depends on where the property resides. There are certain forms that the seller must have with him or her when disclosing facts to ensure the document filed has everything cited and checked off. The necessary paperwork transfers to the appropriate department, and the seller is then free of responsibility if he or she completed it properly.

The Disclosing of Facts

For land, buildings and holdings sold to a private buyer, any issues, defects or complications with the property require disclosure to the potential buyer. Even if the buyer does not perform a survey or assessment of the house or land, some state laws force the seller to ensure the individual purchaser is aware of such problems. Many have specific forms provided by the state or local area which the seller, his or her agent or another party involved in the sale will fill out. Once completed, the form along with all other documentation is available and copied to the correct office. If a claim arises later, the paperwork referenced may or may not condemn the seller for completing necessary actions in the deal.

What to Address and Disclose

There is a basic framework in each state that explains to the seller what he or she will need to disclose to remain in adherence to any specific laws regarding real estate disclosures for potential buyers. When provided with the paperwork, the seller may follow the sections one by one. He or she may also need to hire a surveyor or assessor to determine if there are any additional defects or problems that need repair or explanation to the purchaser. Material conditions may also increase or decreased based on regulations in the state, city or local town. However, all material facts need disclosure even when not in the provided paperwork.

Much of the material the seller will cover in his or her necessary disclosure will require details such as a refrigerator that leaks. If the appliance causes a puddle, the new owner could slip and fall. Then, he or she may attempt to pursue legal action against the seller for his or her injury. When disclosed property and in accordance with the laws, the seller may remain free of liability in the situation. However, if the information was kept from the buyer, litigation could succeed. It is important to follow any legal regulations in these matters to the letter and ensure no stone remains unturned.

The Sale Details

It is critical in real estate deals to determine what state laws apply based on where the property resides. Because some states have more lax rules for the seller and they affect the buyer more, the seller may have fewer obligations in disclosures. However, known defects or problems the seller has even a possible awareness of may require communication with the potential buyer.

However, if the seller discovers the issue after the sale completes, he or she may have no responsibility in telling the person that purchases the house. In regard to material conditions, the seller must disclose what he or she knows about the property. This may even extend to the land issues, rights and deeds of sale.

If the knowledge that the land has a marsh that could sink other buildings exists with the seller, he or she would need to disclose this if the decision to buy may change with the purchaser. These material conditions could alter the deal, change the mind of the buyer or complicate sales. Even if the seller is unable to finalize the paperwork after disclosure, he or she has an obligation by law to follow through.

Real Estate Lawyers in Material Conditions

To prevent litigation or defend against it, the seller should hire a lawyer. Legal representation may need to hire a surveyor or someone to assess the property as well as ensure necessary disclosures occur.


Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer.

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