What does Relevant Disclosure Mean in the Real Estate Market?

When selling a home, you need to be prepared for an inspection as a potential buyer will want to make sure of the property’s value. As a seller, you are also legally obliged to disclose all relevant information about the property in question. Nevertheless, relevant is a word which can have a different meaning to various people. Therefore, it is important to know what is the law regarding this matter. These information is useful to a potential buyer but also to a property seller as it will help them avoid future lawsuits.

The meaning of disclosure

The common law states that a seller is obliged to disclose all hidden or latent problems that the inspection department may miss. This disclosure law is necessary in order for the buyer to be aware of the actual value of the property, as certain defects may only be visible in certain parts of the year or during certain circumstances. Fur example, if the basement is flooded every spring due to a broken sewer line, the owner is obliged by law to disclose this information otherwise he may have to deal with a lawsuit from the property’s new owner. The property must also be in compliance with all building regulations. For example, if a certain structure has been built on the property without building permits, the seller is obliged to disclose that information at all.

Appliances

Generally, all built in appliances are included in a sale of a property. This includes, air conditioners, stoves and any other built in appliances. All appliances that are not built in yet are also included in the sale must be specified in the contract. The appliances, as well as the overall home are sold in an “as is” state. This means that if any of the appliances break before the contract is signed, the seller is forced to repair them and restore them to working order. Say your refrigerator breaks down before the sale is concluded and it is completely beyond repair. If you cannot restore the refrigerator to working order, it is your duty to purchase another one of equal value and to notify the buyer of the change. Otherwise, the buyer can assume that you misrepresented the appliance’s condition.

Buying new appliances might seem like a waste of money but a lot of potential buyers appreciated finding a home with a fully equipped kitchen. Therefore, before holding an open house, you might want to give that rusty fridge the retirement that it deserves. Read the best customer reviews and pick a well rated refrigerator. A single new appliance will give the illusion that the overall kitchen is well maintained. When reading the best customer reviews, look for appliances that consume little energy as those make for great selling points.

Utilities

The seller is responsible for paying all of the property’s utilities until the possession date. It is also the seller’s duty to notify the utility companies of the property’s ownership change. In order to avoid possible property damages, it is best to keep the utilities in place until you receive payment for the property as it is possible for a buyer to postpone the payment.