What exactly should you disclose to potential buyers when selling your home? These are disclosures required by state and federal law.
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If you’re selling your home in California, there are certain disclosures that you are required to complete before your sale is final. The purpose of these disclosures is to alert the buyer to any potential issues in the home and generally give them a better picture of how the home has been taken care of. Here are six different disclosures that you may have to complete if you’re thinking of selling your home:
1. Water damage or mold issues. If you’re aware of a leaky roof or dampness in your house, or any evidence of water intrusion, you’ll need to disclose that to the buyer.
2. Lead paint. The federal government requires anyone who has a home built before 1978 to disclose their knowledge of any lead-based paint in the home.
3. Natural hazards. California state law requires sellers to alert buyers of any natural hazard risks in the area such as wildfires, earthquakes, and floods. This is typically done during escrow via a third-party who creates a natural hazard disclosure report.
4. Termite damage. If you’ve had your home treated for termite damage, that needs to be disclosed. During negotiations, a buyer may ask you to provide them with a pest inspection report or wood-destroying organism report. The report identifies active infestations as well as past evidence of an infestation.
5. Repairs and insurance claims. If you have knowledge of any previous repairs or insurance claims from yourself or the previous owners of the home, that needs to be disclosed. I’d disclose these when you list the home.
6. Death. In California, it’s required for you to disclose if you have knowledge of anybody dying in the home within the past three years.
We have a saying in real estate: “When in doubt, disclose.” In other words, it’s better to be thorough and alert the buyer to any and all potential issues upfront. Keeping a binder of receipts and documents that show the different upgrades and improvements you’ve made to the home is smart.
If you have any questions for me or you’re interested in buying or selling a home in the Palm Springs Area, don’t hesitate to give me a call or send me an email. I would love to hear from you.