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Disclosure of Real
Estate defects
The law requires a seller to provide prospective buyers with a written
disclosure statement covering such items as appliances, structural defects
and modifications, possible easements, neighborhood problems and other
material fact that may affect the principal's decision in a transaction.
All residential transactions require these be accomplished prior to closing.
As far as known Hazardous Substances on the Property, the State law requires
that disclosure of known environmental contamination or hazards on a subject
property be made to prospective Buyers
Real estate agents and sellers are being held to ever more stringent and
higher standards with regards to disclosure. The number one claim on Errors
& Omissions Insurance is "failure to disclose" some item that a Buyer felt
was material.
Although there is no way to completely prevent law suits, there are some
general guidelines to help protect against non-disclosure liability.
Make all disclosures in writing and obtain acknowledgment signatures.
If there is any doubt, don't wait for the buyer to ask, just disclose it! |
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