March 1, 2016 by Jed Bratt
Some of the most important parts of selling and buying a home or other real property are the Seller DISCLOSURES. Full transparency in seller disclosures is KEY to a successful transaction and beyond— in fact my guess is that non-disclosure is probably the most common cause of lawsuits in real estate!
This cannot be overstated: when you’re selling a property, it’s EXTREMELY important that you disclose anything and everything you know about the property that may in any way be a concern to the buyer.
The definition of “Material Fact” according to USLegal.com is “a fact that is important, significant or essential to a reasonable person in deciding whether to engage or not to engage in a particular transaction, issue or matter at hand.”
Look, as a seller, it is your responsibility to disclose any known Material Facts to the buyer. If you have to ask if you should disclose something, then most likely the answer is most likely “YES.”
On many occasions, a home seller will ask me if they should “mention this” or “say anything about that…” adding “—it was all repaired.” Here’s the thing— most buyers will appreciate (and expect) your honesty when you do mention the leak in the wall that was repaired, or the part of the driveway that pools water when it rains. First of all, if it’s a big deal and you’re worried about it scaring the buyer away (think a cracked slab)— then that’s one of the most important disclosure to make!
Take it from my personal experience— there are many things buyers will perceive as minuscule when properly disclosed during escrow, that the same buyers may perceive as major and passionately pursue the seller for once discovered after the transaction has closed (and many times win).
Take away: When selling your home, cover your own butt and make sure to disclose every possible material fact that you know about the property.
Also don’t miss this free Home Seller’s Guide for a play-by-play of what you need to do to get your San Diego home sold.