All Topics Real Estate, Buying Real Estate

The Importance of Disclosures

If I am so fortunate as to one day act as your Realtor consider this blog post just a quick little heads up on disclosures, a big topic we will discuss when selling your home. Section 10.2(a) of the Utah REPC states “Buyer is purchasing the Property in it’s “As-Is” condition without expressed or implied warranties of any kind;” Following section 10.2 is section 10.3(a) which states “Seller agrees to: (a) disclose in writing to Buyer defects in the Property known to Seller that materially affect the value of the Property that cannot be discovered by a reasonable inspection by an ordinary prudent Buyer…” Section 10.2 only protects the seller in the event the sellers abide by section 10.3 and discloses everything!

As the listing agent of a home it is incredibly important to me that the entire process of selling a clients home goes smoothly. The process of selling a home includes the following 4 stages; Stage 1, preparing the home to go on the market. Stage 2, putting the home on the market. Stage 3, being under contract with the prospective buyer and closing on the home. Stage 4, the indefinite period of time after settlement.

How do disclosures come into play during all 4 stages? All sellers disclosures are filled out during Stage 1 however, if at any point during Stage 1, 2, or 3 a new problem arises, an old problem resurfaces or the home is modified in any way, the disclosures MUST be updated! All of this work protects the seller in the long run because the buyer understands all the ins and outs of the home and truly is agreeing to purchase it “as is”. All of this work during stages 1, 2, and 3 gives the seller the best possible chance to move on after selling the home without ever having to look back! If the seller fails to disclose something about the home the buyer could potentially take action after settlement (stage 4), in some way against the seller.

Now that I’ve emphasized the importance of disclosing everything, what does everything include? Everything a seller know’s about the home. For example; Has the roof been repaired? disclose it! Has the property been sprayed for wasps by a pest control company? Disclose it! Has an HVAC company inspected or repaired any equipment in the home? Disclose it! The list of examples is endless. Disclose, Disclose, Disclose.

When selling a home it is important to be able to answer yes to the following 5 questions!

  1. Did you disclose defects in the home?
  2. Did you complete the sellers disclosures?
  3. Did you deliver the property in the same condition that it was in on the date of acceptance?
  4. Did you remove all personal belongings and leave the property in broom clean condition?
  5. Did you repair any moving related damage?

I am a licensed Utah Realtor so if you live in another state ask your Realtor about the rules that are specific to your state. If you do not have a Realtor and would like me to refer you to one I am happy to do so.

Thanks for reading! JD

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