Sellers Self-Defense

Let’s talk about self-defense in real estate today.

If you’re a seller in a real estate transaction, how do you defend yourself from getting sued over that transaction? After hiring a Realtor, your next best self-defense move is actually a good glass of integrity. Be open and honest about the property you’re selling. I know you love your house, but it’s a house, sometimes things go wrong and that’s ok! It’s very important to disclose to the best of your knowledge anything going on with the house to a buyer.

Sellers do this on a form called a Sellers Disclosure. Through this form, the seller gets the opportunity to communicate any known property issues to a potential buyer. This form can be tedious and can take some perseverance to fill out! Historically, sellers don’t love disclosing things that are “wrong” with their property. They understandably want to shine the best light on the property to pick up a buyer quickly and sell at the highest price. However, sellers should consider if they give inadequate, inaccurate, or incomplete information on this form it could result in expensive legal problems.

Specifically, the Sellers Disclosure asks what features the house has and then asks you to describe their condition, any defects, malfunctions, needed repairs, or previous repairs. There are several places that it gives you the opportunity to explain. The form also asks other questions; is the property is in a floodplain, if there is a mandatory HOA, if there are any legal issues that would directly affect the property, if the seller has filed an insurance claim on the property, and if any modifications have been made without the necessary permits.

It’s always best to answer the questions to the best of your knowledge. If you’re not sure you can always talk to your Realtor or seek legal advice if you have questions. Lots of buyers don’t expect a house to be in perfect condition, they just want to know what they are getting into.