Disclosures

A disclosure is a piece of information that by law, the seller must reveal to the would-be buyer before they agree to purchase a property. Disclosures vary from state to state. However there is a disclosure that is mandated by federal law and that is the disclosure regarding lead-based paint. This disclosure is required of for any home that was built before 1978.

For the seller, the purpose of the home disclosure statement is to let the buyer know whether there are any material defects in your home. If your home has a problem that you don't disclose to potential buyers and that doesn't show up on the home inspection, that doesn't mean yo are off the hook. Let's say the sale goes through and the buyer doesn't encounter the problem until some time after the sale. By not disclosing a problem with your home, you leave yourself open to a breach of contract claim or an intentional misrepresentation claim, either of which could leave you holding the bag for the new homeowner's repair bill, legal bills and possibly more!