10:58 am - Wednesday December 13, 2017

Important Disclosers to Be Done While Selling Land to Avoid Legal Hassles In Future


You might invest huge amount of money to buy your dream house. It needs to be perfect and according to your requirements. What if you find defects in the house after say one month of purchase? What if the roof starts leaking when it rains? At that time, you might feel that someone has betrayed you. This article consists of some ways you need to take into consideration before buying a property.

Before making any kind of transactions in real estate, the seller needs to disclose details about the property. Buyer has the right to know the year of establishment of property, material used in constructing roof, dimensions of the house and other details. Before buying any property, you need to gather information regarding the property repairs in past few years.

Property in Europe

Property in Europe (Photo credit: Images_of_Money)

What are the Responsibilities of the seller?

Various defects like leaky roof, termites, malfunctioning heating, rotting wood, flooding basement and many others could cause serious damage to the property. Besides this, they might cause personal damage as well as death in severe cases. If you are aware of these defects, you need to disclose them. Even if you are not sure about the danger that might occur due to the defect, disclose it anyway. Otherwise, the buyer might file case against you.

Materials facts could often affect one’s decision of purchasing a particular property. If a death or crime has occurred in the property, it’s your duty to disclose it. Let the buyer know about the external issues like floods, earthquake, pollution, noise and many other hazards. It is the buyer’s right to know whether the property is situated at a high risk area.

Understanding different types of defects

Two types of defects are common in a property namely latent defect and patent defect. Patent could be referred as obvious defects which one could see. Buyers fail to observe some defects on a normal inspection. Such defects are often known as latent defects. Such defects include illegal basement apartment, improper foundation and other serious basement problems. If you are aware of these conditions, you need to inform the buyer.

Before selling a property, seller needs to complete certain documentations as mentioned below-

  • Lead based paint disclosure statement
  • Seller’s disclosure statement

How to prepare seller’s disclosure statement

While preparing the seller’s disclosure statement, you need to mention about the condition of property. You could mention the details about plumbing, electricity, heating, poor water drainage and many others. While determining the price of the property, you need to take into consideration the items disclosed.

 It is advisable to prepare this disclosure with candor and honesty. If you disclose the facts, the buyers would be able to generate trust in you. This will help you to succeed in the real estate field.

Before preparing the disclosure document, you might get your home inspected. Hire a trustworthy inspector for the same. It will make it easier for you to include minute details in the documents. If you want to sell your property at good prices, you could make all the minor repairs.

Duty of the buyer

Being the buyer, you need to follow certain precautionary measures. You could ask the real estate agent whether the property is stigmatized. It is advisable to investigate well before making the final decision. To prevent yourself from buying defected property, you could consult a well known real estate seller or agent. Browse the internet to get the details of trustworthy sellers. You could-

  • Have a look at the history of the agent
  • Ask your relatives or friends  to recommend a trustworthy agent

Author’s Bio:

Kevin has been writing a lot of articles related to real estate, mortgage, and finance topics. He also explains about the importance of nhdirect report for those who wish to purchase land for construction purposes.

 

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