Seller disclosure is the biggest lie in Real Estate

Published on 6 January 2025 at 20:21

🏠 “Seller Disclosure is a Lie” – Truth Behind the Statement

While it might feel that way at times, a seller’s disclosure isn’t inherently dishonest. However, there are valid reasons why buyers often feel misled:


🤔 Why Seller Disclosures Can Seem Inaccurate

  1. Lack of Knowledge:

    • Some sellers genuinely aren’t aware of hidden issues, especially if they’ve lived with them for years.
    • Example: A minor leak in the basement that only happens during heavy rain might go unnoticed.
  2. Selective Memory:

    • Sellers might “forget” to disclose past problems if they think they’ve been fixed.
    • Example: A repaired water heater leak might still have caused unseen mold damage.
  3. Fear of Losing the Sale:

    • Sellers may downplay or omit issues to avoid scaring off buyers.
    • Example: Writing “no foundation issues” when minor cracks are visible.
  4. Ambiguity in Disclosure Forms:

    • Some forms have vague questions (e.g., “Any past water issues?”) that allow sellers to interpret them loosely.
  5. DIY Repairs:

    • Sellers might attempt repairs themselves instead of hiring professionals, leading to incomplete or hidden problems.

🛡️ How Buyers Can Protect Themselves

  1. Get a Professional Home Inspection:

    • A certified inspector can identify issues that might not be listed in the disclosure.
  2. Ask Specific Questions:

    • Don’t rely on generic answers. Ask about specific areas of concern (e.g., “Has the roof ever leaked?”).
  3. Look for Inconsistencies:

    • Compare the disclosure with what the inspector finds.
  4. Review Past Permits and Repairs:

    • Check local records for recent renovations or repairs.
  5. Include a Contingency Clause:

    • Ensure your purchase agreement allows you to back out or renegotiate based on inspection findings.

⚖️ Sellers’ Legal Obligation

  • In most states, sellers are legally required to disclose known defects.
  • Failure to disclose can result in legal consequences, including fines or being forced to cover repair costs.

If you believe a seller intentionally hid a major issue:

  • Document everything (emails, inspection reports, photos).
  • Consult a Real Estate Attorney to discuss potential legal actions.

🤝 Key Takeaway:

  • Not every seller lies, but disclosures aren’t foolproof.
  • As a buyer, trust but verify—and as a seller, full transparency is always the best policy.

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