Buyers Must Declare Defects in House – or Else

The days of “buyer beware” are long gone, with most states requiring sellers to list all known defects of a home when putting it up for sale. Aside from obeying the law, there are several good reasons why you should be truthful when filling out a disclosure form. If you disclose the defect and the buyer decides to buy the home, then you the seller are not responsible for any possible consequences. The areas of a home most likely to come up in a buyer inquiry include plumbing and sewage, any kind of water leakage, including in basements, termites or other insect infestations, roof defects, heating or air conditioning, foundation instabilities or cracks, title, neighbor problems that are not apparent, and lead paint, among others. It is important to remember that you are only responsible to disclose the defects you knew about or should have known about. Your requirement to disclose is another reason why you should have your home inspected before putting it up for sale to determine what needs to be fixed or replaced. If you decide not to disclose any of the physical defects, you could be sued by the buyer after the defect is found. You may then be required to pay for the repairs and other costs associated with the hidden defect. In addition, a judge could “rescind” the sale and you could be forced to reacquire the property, and possibly pay the attorney fees of the buyer. The bottom line: “buyer beware” is done — disclose everything. | Read More