What Is a Disclosure Statement?
What you see is only what you see---there may be surprises hiding out of view. Disclosure statements or documents are designed to eliminate these unwelcome surprises; they range from type of real estate agent to an owner's property disclosure.
Other People Are Reading
-
Description of Disclosures
-
Many states now require a seller's property disclosure, and some require other types such as agent disclosure forms; homes built before 1978 require a lead base paint disclosure form. More examples can be found at the Colorado governmental regulatory site. If no federal or state form is available, some real estate agencies have their attorney create one, or they add a written statement to a contract offer.
Realistic Expectations for Form
-
Even with disclosures, as the book "Investing in Real Estate" observes, it doesn't mean everything is clear. A seller can't disclose items she doesn't know about---and some items are subjective. As well, if no disclosure is required, and no one asks about a potential issue---such as radon---there will be no discussion.
-
Managing Issue Behind Disclosures
-
Disclosures are best supplemented with thorough review and inspection of the purchase process and the property in the state of residence, determining typical issues in the local region and following up with experts for areas a home inspector has noted may be problematic. The book "Buying a Home" suggests an inspection even before an offer, but because that is extra cost, certainly after.
-
References
Resources
- Photo Credit house image by Byron Moore from Fotolia.com
