THE HOME BUYING & SELLING PROCESS - SELLER DISCLOSURE

For most of us, the cost of a home is the largest spending commitment we will ever make in our lifetime. Our homes provide privacy, security, shelter, and comfort for ourselves and our families. We often make reference to a dream home where all of these features are worth everything we have.

The value of our home can quickly deteriorate when things begin to fail or it experiences major distress. Many things that can go wrong can remain unseen to the casual inspector and even to a thorough inspector. Some issues may begin as minor but eventually grow to become major problems.

Owning a home for a period of time gives you intimate experience with its daily usage. You know if it has chronic drainage problems or if you’ve had to deal with termites or if the roof has a leak. Even after repairs, you have knowledge of your home’s history and what it went through.

Part of a home Buyer’s due diligence is to hire a professional inspector to ensure that everything in the home is in working order and meets minimum construction requirements. It is not always possible to identify issues through inspection. Things that are not otherwise known can become a huge risk for the Buyer.

Buyers need protection from these risks since their commitment to purchase your home could determine their financial stability.The Texas Property Code includes a section that requires you to provide a disclosure of your home’s condition. This disclosure must be in writing and signed by you. It is tempting to overlook some items in fear that you will lose the Buyer or will have to agree to a lower price. However, this would be a violation of the Property Code and would make you liable for any legal consequences.

Your Agent is obligated under license to disclose any material information he has learned about the condition of your home. Your Agent also has a duty to your confidentiality except for issues materially relating to the condition of your home. For example; a death that occurs on your property, such as a murder or suicide, is something that is confidential and can only be disclosed by your agent with your consent. However, a death due to the condition of the property, such as a faulty banister, is a required disclosure.

Your Agent will provide you with a Seller’s Disclosure form that is in compliance with the Texas Property Code. The disclosure is your responsibility as the Seller. The Agent cannot complete it for you, nor provide advice. The disclosure is your testament of what you know about your home.

The Property Code requires that you provide the disclosure at or before executing the sales contract (signed by both parties). If it is not provided at that time, the Buyer can cancel the contract for any reason within 7 days and you may be stuck finding another Buyer.

It is best to disclose everything you know about and have experienced with your home. This will ensure that you are providing good faith in your transaction and are complying with the law. The best time to provide your disclosure is when listing your home so the Buyer has it before making an offer. This will help to eliminate renegotiation and minimize the time it takes to close.