When it comes to selling your home, one of the most common questions sellers ask themselves is: What property defects do I need to disclose when selling my home?
Although it may be tempting to pretend that a defect does not exist, or that you do not know about it, this can only lead to more problems later on and it is not recommended. Depending on the severity, non disclosure of property defects can lead to fines, termination of the sale and even potential law suits.
We take a look at the serious property defects that must be disclosed, as well as some of the less serious defects that are not usually required to be disclosed.
Serious Property Defects That Must Be Disclosed
The seller is legally obligated to disclose the following property defects to a potential buyer before the sale of the property becomes final.
1. Water Damage
Water leaks can seriously affect a home’s structure, damage personal possessions, cause health hazards and other unsightly problems, such as peeling paint, mold and mildew, lifting floorboards, ceiling damage and more. Any water damage or leaks (internal or external), including the swimming pool area must be disclosed to the buyer, before they make an offer.
2. Roof Damage
Sellers must disclose any damage or leaks to the roof structure, roof tiles, the ceiling or roof fixtures, such as gutters and down-pipes before the sale is concluded.
3. Structural Damage
Structural damage refers to any major cracks or damage caused to the property foundations, property walls, boundary walls, the roof, the driveway or the swimming pool. Faulty or defective plumbing must also be disclosed because faulty plumbing can cause major structural damage to a properties foundations, walls and ceiling.
4. Pests & Termites
The seller must disclose knowledge of any active termites and wood rot damage in need of repair, or caused by previous termites. In some states or countries, the seller is required to present a fumigation certificate or pest control certificate with the sale of a house.
5. Hazards & Zoning Issues
If the property is located in an earthquake zone or has suffered damage from an earthquake, tremor or landslide in the past, this must be disclosed to the buyer. Also, if your property is located in a flood plain, wetland or agricultural zone, you may be required to disclose this information to the buyer.
Property Defects The Seller May Not Be Obligated To Disclose
In most cases, the seller may not be obligated to disclose the following less serious issues to the buyer; however some states or countries may require certain issues to be disclosed, especially when it comes to property fixtures and emotional defects, discussed below.
1. Neighbors from Hell
We don’t always get perfect neighbors and some neighbors just don’t co-operate. This includes noisy neighbors, messy neighbors that never maintain their home or garden and those neighbors who potentially create health hazards by storing or hording junk items and other trash on their property.
2. Neighborhood Nuisances
This refers to smells, odors, traffic noise, street noise or loud music that frequently occur outside the property. This could create a problem or disturbance to the new residents, especially if it occurs at night, or if the property is located in an area with a lot of nightlife activity.
3. Property Fixtures
When selling a property, the seller may intend taking certain features or fixtures with them, when they leave, however they do not make this clear to the buyer before the purchase. When the purchaser moves in, they discover that some fixtures are missing.
This can be tricky… for example, a free-standing wardrobe in your bedroom, the outdoor furniture and barbecue on your patio is considered to be personal property, but the light fixtures, ceiling fans, central heating and air conditioning units are usually considered to be part of the property and should not be removed. If it is not entirely clear, rather disclose to the purchaser what fixtures you intend taking with you, when you leave.
4. Emotional Defects
Some states and countries require the seller to disclose if any serious or emotional trauma has ever taken place in or on the property, especially a trauma such as a murder, suicide, drowning, paranormal activity or any other violent crime.
What if the Seller Fails to Disclose a Property Defect?
If a seller purposely fails to disclose a serious property defects to the buyer and it can be proved that the seller was aware of the problem, the buyer can demand compensation, recourse from the seller or even take legal action against the seller for non disclosure.
