What lies beneath the surface can be just as important as what meets the eye when buying a property. Many people know sellers must reveal physical problems such as a faulty or leaky. Yet, they must also disclose less obvious issues that can impact a property’s value and your enjoyment.
If you are looking to buy a property, it is essential to understand these disclosures so you can make a well-rounded choice.
Non-physical aspects sellers must disclose
A comprehensive residential property condition disclosure aims to prevent scenarios that can lead to financial strain, stress and even serious health risks for the buyer. This includes revealing more than just visible problems, such as, but not limited to:
- Past insurance claims: Has the seller filed insurance claims for issues like fire, flood damage or other problems?
- Neighborhood disputes: Are there ongoing disagreements with neighbors about boundaries, noise or property use?
- Environmental hazards: Does the property have a history of asbestos, radon, lead paint, or other environmental concerns?
- Zoning or land use changes: Are there any upcoming plans for development, zoning changes or easements that could impact the property’s use or value in the future?
- HOA issues: If the property is part of a homeowners’ association, are there any ongoing disputes, special assessments or restrictions that could affect you as a homeowner?
Suppose you moved into your dream home only to discover your new neighbor throws nightly parties that shake the walls. Or, what if you learn about a planned highway expansion that will drastically increase traffic noise outside your front door?
If the seller had included these problems in the disclosure form, your decision to buy the property might have been different.
It is better to be safe than sorry when making an investment
It is crucial to carefully review the disclosure form and ask questions if you need clarification on any information about the property you want to purchase. Do not rely solely on the disclosure form for your due diligence. Instead, use the experience of an attorney to your advantage to ensure you have protections in any real estate transaction.