The Importance of a Seller’s Disclosure

| July 8, 2010 | 1 Comment

I have been asked many times, “Why do I need a Seller’s Disclosure when it’s an “As Is” sale?”

For a seller in an “As Is” sale, they are still required to disclose any defects known to them even though they are selling the home in “As Is” condition.  This does not ever release the seller from their obligation of disclosure required by law.  This is why as a listing agent you must insist that your seller really thinks about their entire home when completing the Seller’s Disclosure.  Don’t forget to remind them to remember to disclose those things that may have never worked since they moved in, for example: windows, electrical outlets and appliances.  Many times a seller will forget these defects because they have lived with it, or never used the defective item.

A buyer purchasing a home in “As Is” condition should always expect a Seller’s Disclosure to understand any possible issues they may be purchasing.  Keep in mind that in today’s market, many institutional or investor sellers will not complete a Seller’s Disclosures as they have not lived in or sometimes even seen the property.  This does put a lot of risk on the buyer.  So, when representing the buyer in any transaction especially in one where there is no seller disclosure, you must strongly advise the buyer to obtain a professional home inspection.

A home inspection is good for both the buyer and seller.  For the buyer, it reveals possible issues and future maintenance items.  For the seller, it will relieve some responsibility for defects they may not be aware of that could become an issue after the closing. 

My belief is that there is no such thing as too much disclosure! The more that is on the table, the less that can come back later in possible litigation.

Posts in this category are compliance guidelines. Nikki is not an attorney nor is she giving legal advice.

Category: Nikki's Compliance Corner

About the Author ()

Nikki along with her husband Gary, became licensed in 1986 and over the years built a mega sales team that has served over 3700 families with a volume of 560 million dollars in sales. They both hold the CRS designation. Nikki is also the broker/owner of 3 Keller Williams Realty offices, 2 Title companies and the operating partner for the South Florida region for Keller Williams Realty. Nikki has spoken and trained for FAR, CRS, Howard Brinton Star Power, Numerous real estate boards, Aetna insurance, The Rotary, Tampa Bay Builders association, and the YMCA to mention a few. She is a master trainer for Keller Williams University and has helped to write many courses for real estate professionals. Being a firm believer in education she is continually sharpening her skills through education and walks the walk by sharing her knowledge and experience.

Comments (1)

Trackback URL | Comments RSS Feed

  1. Toni Mace says:

    Excellent! I would love to receive more articles like
    this one.

    Thank you!

Leave a Reply

Your email address will not be published. Required fields are marked *