Do I need to submit seller disclosure statement???

Question

I am still working on getting my first deal under contract and while I was going over docs I may/may not need I became curious if I would need to submit a seller disclosure statement when I bought or sold a property. Is this only required for realtors? I got this form from the Nevada Division of Real Estate and it wouldn't be a major problem to have a seller fill out when I am getting a contract but for me to fill out as a seller could be risky as I have NO KNOWLEDGE of the property and wouldn't be qualified to accurately disclose anything.

This may differ by state and I am in Nevada but all opinions are appreciated.

Wayne Brooks · Answer

Brian is right.  You are required to disclose what you Know of.  The requirement has nothing to do with a Realtor being involved, it's a requirement of a seller.

Steve Babiak · Answer

Not all states require seller's disclosures - you have to check your state's law to know for certain.  Also, in my state, the standard realtor seller disclosure form requires a number of disclosures that aren't required by PA state law; so it's possible that in your state, the realtor form requires more than what the state law requires.  Depending on the transaction, I know I can switch from using the realtor form and still comply with state law.

Tyler Carson · Answer

Thanks for the reply.  Exactly what I needed to know!

Brian Burke · Answer

Certainly you want your seller to complete it so that you will know more about the property.

When you sell, you are required to disclose all known defects. This would include defects that the seller disclosed to you (that you didn't fix), along with other defects you discover. You incur more liability for not completing the disclosure than for not disclosing a hidden defect that you didn't see.

I always include a statement in all my disclosure statements that says "seller has never lived in the property and has owned it for a short time. Seller is not aware of all of the property's defects, and advises buyer to obtain, and rely upon, professional inspections to determine the property's condition and suitability."

Don't rely upon that statement for a get-out-of-jail-free card.  If you see something wrong, put it in the disclosure.