Home
Sellers should disclose facts about the home
Home owners in California are required to fill out a form that discloses material facts about the house they are selling. Material facts are details about the condition or legal status of the property, the age of its components and any defects that may exist.
The exact questions that are asked vary from state to state, but they cover many of the same topics.
Even if your state is one of the few that does not require a written disclosure (California does), the real estate laws probably do require sellers to disclose any known problems with the house they are selling.
Examples of Material Facts
- Age of shingles and other roof components.
- Leaks in the roof or foundation walls.
- Existing mold or mildew within the home.
- Damage from wood destroying insects.
- Problems with sewer or septic systems.
- The amount of property taxes paid per year.
- The square footage of the home.
- A planned roadway that will slice ten feet from the property's front yard.
- Details about an individual who claims to have an interest in the property.
- Information about a structure on the property that overlaps an adjacent property.
- The existence of a buried oil tank.
- Death of a violent nature on the property within the past 3 years.
Things That Are Not Material Facts
- Personal information about a seller, such as impending foreclosure or divorce.
- The seller's reasons for moving.
- People with AIDS or HIV are considered legally handicapped by Fair Housing laws.
An agent cannot legally answer you if your questions focus on that illness.
Seller's agents are not allowed to disclose personal information about sellers.
Buyer's agents may disclose personal information about sellers to their buyer clients, except AIDS/HIV as discussed above.
Details that May or May Not Be Material Facts
- That a death occurred in the home, (unless it was of a violent nature within the past 3 years).unless it is specifically asked, then the agent must be truthful.
- That a home is considered to be haunted.
What Should Agents Disclose?
Agents are not expected to be home inspectors, but they can be held accountable for material facts they are aware of--or should have been aware of.
- If a seller covers rotting exterior wood with another siding before an agents sees the home, the agent wouldn't be expected to have knowledge of it. But if that operation is taking place during the listing, the agent must disclose the problem if the owner does not.
- If an agent notices that sellers have elevated everything that's stored in the basement, the agent should ask if there's an ongoing water problem.
- If the agent sees that the seller still has pans sitting around after a heavy rain, the agent should question the seller about the integrity of the roof.
Home Buyer's Bottom Line
Ask as many questions as necessary about the home before you make an offer. Get responses to important questions in writing.
- Make sure your offer to purchase is contingent on a satisfactory home inspection.
- Even if sellers are not required to furnish a property disclosure, they should still disclose known problems.
- Sellers often declare "no representation" when they are unaware or unsure of a problem. It doesn't necessarily mean they are being evasive. Perhaps the home is part of an estate settlement and the person handling the sale simply doesn't know the answers. Maybe it's a vacation residence that the seller hasn't recently used.
