In Texas, a seller’s disclosure of property condition is a required legal document to sell pre-owned single-family homes. This video helps explain why and how to use the seller’s disclosure form.
A seller’s disclosure form documents appliances, equipment, and features existing on the property. It reports defects and malfunctions in critical systems. It describes earlier events, like termite treatment, fires, foundation repair, flooding, and deaths. It identifies unpermitted improvements, unpaid fees, violations of deedThe legal document transferring ownership or title to a property Deed-in-Lieu of Foreclosure: The transfer of title from a borrower to the lender to satisfy the mortgage debt and avoid foreclosure. Also called a “voluntary conveyance.”… restrictions, and lawsuits. It should report on any conditions that can affect health or safety.
The Sellers Disclosure protects both buyer and seller. The buyer becomes aware of risks and features. It protects the seller from liability of an undisclosed defect. Concealing defects is criminal fraudulent inducement. Also, parties must understand a repaired defect is no longer a defect. It should show repairs indicating possible future defects. Foundation and underground plumbing repairs fall into this category.
Understand there is no such thing as “sold as-is” to avoid the duty to disclose. A seller must provide a sellers disclosure whether they have lived in the home or not. There are exceptions to the duty of providing a sellers disclosure. Excluded are financial institutions, new construction, estates, and multi-family homes.
For a buyer, a seller’s disclosure does not prevent the need for a thorough inspection. It can give guidance on items of inspection that need more attention. For sellers, a seller’s disclosure is not only a form of legal protection it is a selling document as well. It can highlight the quality and age of newer items and existing warrantiesWritten guarantees of the quality of a product and the promise to repair or replace defective parts free of charge…..s