Real Estate Disclosure
In case you didn’t know… Pennsylvania has a disclosure LAW (68 P.S. §7301, et seq.). A LAW, not a suggestion, not something you do if you get around to it.
How do you know what to disclose? The Pennsylvania Association of Realtors provides a seller disclosure statement to member agents that will guide you through ideas and it will cause you to think about the condition of your home. Not everyone knows all the details of every aspect of thier home, and you may not have a “file of receipts” to refer to. So, it is important to answer the questions to the best of your ability, and if you don’t know the answer, the “Unknown Box” is there for you. When there are issues or repairs to disclose, those items should be expanded on. If a repair was made, you’ll want a buyer to know that.
There Are Exceptions
It’s all listed out on page one of our state provided disclosure. Disclosures do not need completed if the transfer is:
- the result of a court order
- to a mortgage lender that result from a buyer’s default and subsequesnt foreclosure sales that result from default
- from a co-owner to one of more other co-owners
- made to a spouse or direct descendant
- between spouses that result from divorce, legal separation, or property settlement
- by a corporation, partnership, or other association to its shareholders, partners, or other equity owners as part of a plan of liquidation
- of a property to be demoiished or converted to non-residential use
- of unimproved real property
- by a fiduciary during the administration of a decedent estate, guardianship, conservatorship, or trust
- of new construction that has never been occupied when:
- The buyer has a warranty of at least one year covering the construction;
- The building has been inspected for compliance with the applicable building code or, if none, a nationally recognized model building code; and
- A certificate of occupancy or a certificate of code compliance has been issued for the dwelling.
Unless you fit into one of these categories, the disclosure must be provided to potential buyers. Otherwise, you could end up with regrets down the road.
Who Does Need To Complete A Disclosure?
Everyone else that sells a residential property should complete the disclosure. Notice who’s not on the exclusion list? For Sale By Owners (FSBO’s). The disclosure law isn’t only applicable when you hire an agent to sell your home! Also, when a house or multi-unit (4 units or less) is sold (whether you lived in it or not) you must provide disclosures if one of the listed situations does not apply. I’ll say it again. You are NOT excluded simply because you did not live in the house.
Let’s say you inherit your childhood home, or maybe a home you never lived in. Do you complete a disclosure statement? Indeed you do! A lot of the answers may be unknown although you may have gained some insight while cleaning out the house. You may notice a leaky faucet, broken window, or a crack in the foundation, for example, and to protect yourself, you should DISCLOSE IT.
When you have questions about listing a home for sale, reach out to me HERE and let’s talk and as always, contact your attorney for all legal advice!