Whether you are selling a home or buying one, there are often questions about what the seller is required to disclose. In Pennsylvania, we have an 11 page form that asks about the roof, plumbing, HVAC, whether there’s been water in the basement, shifting in the foundation, and lots of other specifics. The overriding theme is that the seller must disclose material defects. Those are defined as issues with the property that significantly affect its value or pose a safety risk to someone living there.
Many times, when I provide this explanation, I am asked questions like, “Do I have to disclose if someone died here?” The answer is no, not in PA. Our rules for what needs to be disclosed are based on problems that could potentially be assigned a dollar value to rectify. So things like a leaking roof, unsafe wiring or rotted window frame fall into that category. A neighbor with a dog that bark a lot or being in the path of the news traffic helicopters don’t.
Here is a scenario that comes up fairly often and also tends to cause confusion: Let’s say your property goes under contract and the buyers have an inspection done and then terminate. If you receive a copy of that inspeciton, you are required to update the disclosure to reflect any problems discovered by the inspector. Alternatively, you can provide a copy of the report to all interested buyers. (As a side note, sellers often fix some of the problems and then provide a copy of the report with notations on repairs that have been made,)
While it’s understandable that some sellers are reluctant to disclose defects (even though they are required by law to do so), keep in mind that disclosure has a benefit to the seller. Remember that a buyer’s offer includes a signed copy of the disclosure. Any problems that are disclosed are, in theory “off the table” as far as a buyer asking for a credit for them after they are noted by an inspector. The seller has a strong argument by saying, “But you knew about that when you made your offer since it was disclosed; the understanding is that your offer reflected your awareness of that problem.”
A final point about disclosure: as much as it might make a seller squirm to list a bunch of “problems” with a house he’s trying to make appealing to buyers, it can protect him in the long run. Consider that the more a seller discloses, the less the likelihood that a buyer will come back after the sale and accuse the seller of knowingly hiding something. These situations can quickly turn into lawsuits which are not only costly, but extremely stressful. So, as we say in the industry, disclose, disclose, disclose.
If you are relocating to the Philadelphia/Main Line area, please go to my blog page and search for posts using the relocation tag. Contact me to discuss your Philadelphia area relocation! jen@jenniferlebow.com/610 308-5973
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