What are Real Estate Disclosure Agreements?March 25, 2021
Older homes are often touched up and repaired before being listed on the market. These touch-ups and repairs increase the initial appeal of the home but can also hide any glaring issues or potential flaws. That is why it is important for buyers to request a real estate disclosure agreement from the seller. Also known as a property disclosure statement, this document lists any current defects, repairs, and other significant property details to give buyers a complete picture of the home. Understanding what real estate disclosure agreements are and what is included in them is crucial for ensuring peace of mind during the purchasing process.
If you need to create a real estate disclosure agreement or need assistance obtaining previous statements, Sidhu & Associates can help. We provide complete real estate solutions to ensure that you have all the information you need to make an informed purchasing decision.
What Should be Included in a Real Estate Disclosure Agreement?
The following information should be disclosed in any real estate disclosure agreement:
- Any work performed on the house (upgrades, replacements, repairs, etc.).
- Past problems with pests (termites, rats, etc.).
- Neighbourhood disputes (property lines, etc.).
- Defects or serious malfunctioning of heating/air conditioning and appliances.
- Major damage from flooding, weather, or accidents.
- If there are any liens on the property.
- If the seller has declared or is currently declaring bankruptcy.
By having this information on hand, buyers will be able to determine if they want to proceed with the purchase and submit an offer.
Is a Real Estate Disclosure Agreement Required?
Though property disclosure statements are extremely helpful, they are not required by law. Sellers can opt to not provide one if requested by potential buyers as there can be certain legal ramifications if the information provided is not completely accurate. For example, if the seller claims that a roof is 5 years old, but it is actually 6, buyers can use that information as a form of warranty. If a home is not being sold by the primary resident or the seller is using an attorney, a real estate disclosure agreement will be difficult to obtain.
Despite the lack of legal requirement, failure to provide a real estate disclosure agreement may make it look as though the seller is trying to hide something. This means that providing a disclosure often becomes a balancing act between transparency and trying to avoid potential legal issues.
To learn more about real estate disclosure agreements, reach out to the experts at Sidhu & Associates through our online contact form or by phone at 604-859-4825. Our team will assist you with any information you need for real estate disclosure agreements and other areas of real estate.