Are Real Estate Disclosure Laws Important?

Published by julia | Filed under Buyer / Seller Tips, Miscellaneous, Real Estate, Uncategorized

Real estate disclosures laws are a very important part of the home seller / buyer relationship. These laws force the homeowner to divulge any major defects in the home, thus saving the home buyer from potential ruin if the home is sold under false pretenses.

The trouble with the real estate disclosure laws are the interpretations one can make regarding a serious defect. If the defect is not considered serious to the homeowner and the inspection does not reveal the problem, the home buyer may have no legal ground to stand on after the home sale is finalized.

While the real estate disclosure laws became popular in the 1960s, not all states have passed strict laws regarding the disclosure of home defects. It is important for the home buyer to speak with their real estate agent regarding the laws pertaining to real estate disclosure (or the lack of laws). In Nevada, the real estate disclosure laws are so strict that allows the home buyer to receive a refund of all deposits placed on a home if a defect is found not listed on the legal disclosure forms. Unfortunately, not all states have adopted laws as strict as Nevada.

In a faltering economy, many homeowners are trying to sell their homes without the aid of a real estate agent. This can be a huge problem, especially in terms of real estate disclosure. If the homeowner does not use the proper paperwork to disclose the defects of the home, the potential home buyer could be legally allowed to back out of the deal and the home sale would be null and void. The homeowner (or previous homeowner) could also be subject to legal ramifications if the proper paths are not followed prior to the home sale.

Another huge factor in real estate disclosure is the person who completes the inspection of the home. If that home inspector is not a licensed inspector, the forms signed may not be legal. Contractors, either licensed or unlicensed, may not be certified to complete home inspections. This is another reason to utilize the connections of a real estate agent when selling or buying a home.

The real estate agent has never really been needed to find that perfect home, buy that perfect home or sell a home. They are needed, however, for their connections, legal expertise and knowledge about real estate, mortgages and real estate disclosure laws