Property Disclosure Overview
Disclosure laws are in place that protect both buyers and sellers. If known defects are listed on a disclosure form, the seller cannot be held liable for those defects after closing. A seller who does not disclose a known defect can, in turn, be sued by the buyer after the defect is discovered. Attorneys that deal with real estate transactions report that the most common source of a real estate lawsuit is nondisclosure. This course outlines the general statutory requirements surrounding property disclosure requirements across the country.
Sellers and real estate agents who represent them must disclose any known material latent defects, and cannot conceal any defects to potential buyers. Sellers have an obligation to disclose any potential problem that could affect the value of the property.
After completing this course participants will be able to:
- Recognize the role of various state entities and the statutory requirements as they relate to disclosure.
- Be able to describe the most common types of defects that must be disclosed, and those that do not.
- Summarize general and specific fiduciary duties that a seller’s agent owes to both the seller and the buyer.
- Understand the sanctions and penalties for violations, for both the seller and their agent.