When you decide to sell your home, there are plenty of steps that need to be taken. One of those will be the filling out of various legal documents that are needed. There will be a contract you’ll need to complete with the Realtor who is selling your home, if you’re using one. There will also be a property disclosure. This document is several pages long, and it’s very important that you fill it out accurately. It will ask you all about the property, so when a buyer goes under contract to purchase your home they can review it and see if you’ve listed any problems with the house.
Don’t Hide From Property Problems
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You might be tempted to leave things off of the disclosure because you don’t want to scare the buyer away, but that’s something you should avoid doing. The disclosure is a legal document, and when you fill it out and sign it, you’re saying that what you’ve noted on it is true and correct. You could potentially be sued if you lie about the property. If you’re not sure of something or you don’t have knowledge of a particular question, say so. Then you won’t be held liable later if there’s an issue with that particular system.
If you’ve had things fixed or corrected while you lived there, it’s best to note that there was a problem and it has been fixed. Give the date it was corrected and be sure to provide documentation if the Realtor or the buyer asks for it. The more you are honest about the property on the disclosure, the less legal risk you’ll be putting yourself in, because you didn’t try to hide defects just to get the property sold. Buyers don’t take very kindly to that, and failing to disclose issues is a serious matter. Your real estate may not want to continue to work with you if it’s found that you haven’t been honest, making it harder to sell your home, as well.
Know What You Have to Disclose
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Of course, one of the things you don’t want to do on the disclosure document is detail every tiny thing that has ever been wrong with the property. Especially if it’s a very old house, there were likely fixes and upgrades done before you ever got access to it. You may have also had things done. Read the disclosure questions carefully and answer them truthfully. As long as you do that, you should be fine. However, if you’re at all uncertain, consult with a real estate attorney and find out what the law says about disclosing things. That way you’ll be better able to complete the disclosure for your property in a way you feel completely comfortable with.
There is often a fine line between opening yourself up to legal liability and just not talking about problems that no one asked about. It’s better to err on the side of caution, but it’s also better to be well-informed about the laws in your state. Your real estate agent can be a good source of information, but they won’t substitute for an attorney who has a much more complete understanding of the law. Realtors also cannot provide you with legal advice, so they must be careful what they say when asking you to fill out the disclosure on your property.
There’s More Than Just a Property Disclosure
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While the property disclosure is one of the biggest documents you need to complete, it’s not the only one. You have the contract to sell your home that you’ve completed and signed for the real estate agent, and you will also have the purchase and sale contract you will enter into with the buyer when they decide they want to purchase your home. There will be several addendums to that contract, depending on where you live and the age of your home, along with other factors. There may be HOA documents, for example, and if your home is older you’ll have a disclosure for lead paint. You may also have one for asbestos.
Read the contract carefully before you sign it, and make sure you understand everything in it. You want to be sure you don’t agree to anything you’re not clear on, and a contract is a legally binding document. Be sure you know what you agree to do, and what the buyer agrees to pay, along with any contingencies (such as inspection and financing) on the buyer’s offer. The more knowledge you have, the more of an informed decision you can make as to whether you should sign the contract or work on negotiating with the buyer instead.
Signing at Closing Can Take a While
When you get to the closing table, you’ll have plenty of things to sign. The buyer will have more paperwork to complete, most likely, and that’s especially true if they’re getting a mortgage. Still, you’ll have some paperwork to sign, and you want to look things over to make sure they are correct, as well. You’ll need to sign documentation to transfer the deed to the buyer, and there will be a closing statement that shows all the money on both sides of the transaction. Depending on where you live, the paperwork you’ll sign at closing can vary a bit.
Just be sure to look over your name, address, social security number, and any other personal information, along with the details of the transaction, such as the selling price. If anything is wrong, stop and discuss it before you sign. The closing is binding, and you don’t want to end up with less money than you intended or an obligation you weren’t expecting.
