3 Must-Disclose Items for Home Sellers

A seller’s disclosure provides important information about a property, but what exactly do you need to include?

The specifics vary by state, but most states require some type of seller disclosure. The goal is to add transparency to the transaction. In this disclosure, a seller provides written information about known things that could impact the property's value. The goal is to add transparency to the transaction. While there are many different things a seller must disclose, I’m going to highlight three often-forgotten yet impactful items.

1. HOA information. If the home is located within a homeowners association, you should disclose that fact. Associations generally impose monthly fees on homeowners, and they can impose rules on their membership that a prospective buyer might or might not find acceptable. You also need to know about the HOA's financial health and provide this information to the buyer so they can make an informed purchasing decision.

2. Repairs. If your home has major structural issues, you have to disclose them to a potential seller. In addition to repairs that need to be made, you must also disclose repairs that have been completed. Buyers need to know the home's repair history so they can have their home inspectors pay extra attention to problem areas.

3. Lead disclosure requirement. If your home was built before 1978, federal law requires that you disclose that the property may produce exposure to lead from lead-based paint. Sellers of homes built before 1978 must also provide buyers with an EPA pamphlet titled "Protect Your Family From Lead In Your Home.” Then, they must give buyers 10 days to conduct a paint inspection or risk assessment for lead-based paint and include a "lead warning statement" in the contract.

If you have further questions about what you need to disclose when selling your home or anything else related to real estate, don’t hesitate to reach out via phone or email.