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Frequently
Asked Questions
Selling
Your Home - Q & A
Disclosure
Q. Whose obligation is it to disclose pertinent information about
a property?
A. Obligations
to disclose information about a property vary from state to state.
Under the
strictest laws, the seller and the seller?s broker, if there is
one, are required to disclose all facts materially affecting the
value or desirability of the property which are known or accessible
only to him.
Items sellers
often disclose include: homeowners association dues; whether or
not work done on the house meets local building codes and permits
requirements; the presence of any neighborhood nuisances or noises
which a prospective buyer might not notice, such as a dog that
barks every night or poor TV reception; any death within three
years on the property and any restrictions on the use of the property,
such as zoning ordinances or association rules.
It is wise
to check your state's disclosure rules prior to a home purchase.
Q. Do sellers
have to disclose the terms of other offers?
A. According
to experts, sellers do not have to disclose other offers.
Q. Will a
neighbor problem reduce the value of my property?
A. While
it may not reduce the actual value, a cluttered landscape can
detract from the positive aspects of your home. Review your local
laws, which should be on file at the public library, county law
library or City Hall.
A typical
"junk vehicle" ordinance, for example, requires any
disabled car to either be enclosed or placed behind a fence. And
most cities prohibit parking any vehicle on a city street too
long.
It also may
be worthwhile to check into local zoning ordinances. An operator
of a home-based business usually is required to obtain a variance
or permanent zoning change in residential areas.
In addition,
if a neighbor's repair work produces loud noises, he may be breaking
local noise-control ordinances, which are enforced by the police
department.
Before bringing
in the authorities, you may want to make a copy of the pertinent
ordinance and give it to your neighbor to give them a chance to
correct the problem.
Resources:
* "Neighbor Law: Fences, Trees, Boundaries and Noise,"
Cora Jordan, Nolo Press, Berkeley, Calif.; 1991.
Q. What are
the standard contingencies?
A. Most
offers include two standard contingencies: a financing contingency,
which makes the sale dependent on the buyers' ability to obtain
a loan commitment from a lender, and an inspection contingency,
which allows buyers to have professionals inspect the property
to their satisfaction.
A buyer could
forfeit his or her deposit under certain circumstances, such as
backing out of the deal for a reason not stipulated in the contract.
The purchase
contract must include the seller's responsibilities, such things
as passing clear title, maintaining the property in its present
condition until closing and making any agreed-upon repairs to
the property.
Q. What repairs
should the seller make?
A. Most
sellers like to make all minor repairs before going on the market
in order to seek a higher sales price. In addition, nearly all
purchase contracts include a buyer contingency "inspection
clause," which allows a buyer to back out if numerous defects
are found. Once the problems are noted, buyers can attempt to
negotiate repairs or a lower price.
Q. How do
I get the real scoop on homes I am looking at?
A. Home
inspections, seller disclosure requirements and the agent's experience
will help. Disclosure laws vary by state, but in some states,
the law requires the seller to complete a real estate transfer
disclosure statement. Here is a summary of the things you could
expect to see in a disclosure form:
- In the
kitchen -- a range, oven, microwave, dishwasher, garbage disposal,
trash compactor.
- Safety
features such as burglar and fire alarms, smoke detectors, sprinklers,
security gate, window screens and intercom.
- The presence
of a TV antenna or satellite dish, carport or garage, automatic
garage door opener, rain gutters, sump pump.
- Amenities
such as a pool or spa, patio or deck, built-in barbecue and
fireplaces.
- Type of
heating, condition of electrical wiring, gas supply and presence
of any external power source, such as solar panels.
- The type
of water heater, water supply, sewer system or septic tank also
should be disclosed.
Sellers also
are required to indicate any significant defects or malfunctions
existing in the home's major systems. A checklist specifies interior
and exterior walls, ceilings, roof, insulation, windows, fences,
driveway, sidewalks, floors, doors, foundation, as well as the
electrical and plumbing systems.
The form also
asks sellers to note the presence of environmental hazards, walls
or fences shared with adjoining landowners, any encroachments
or easements, room additions or repairs made without the necessary
permits or not in compliance with building codes, zoning violations,
citations against the property and lawsuits against the seller
affecting the property.
Also look
for, or ask about, settling, sliding or soil problems, flooding
or drainage problems and any major damage resulting from earthquakes,
floods or landslides.
People buying
a condominium must be told about covenants, codes and restrictions
or other deed restrictions.
It's important
to note that the simple idea of disclosing defects has broadened
significantly in recent years. Many jurisdictions have their own
mandated disclosure forms as do many brokers and agents. Also,
the home inspection and home warranty industries have grown significantly
to accommodate increased demand from cautious buyers. Be sure
to ask questions about anything that remains unclear or does not
seem to be properly addressed by the forms provided to you.
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