Anyone who’s spent time around real estate professionals will likely have heard the adage “disclose, disclose, disclose!” It’s worth your time to discover these 4 things sellers need to know about real estate disclosures in Phoenix.
Understanding Real Estate Disclosures in Phoenix: A Comprehensive Guide
Enjoyment
One of the things buyers are expecting when they have purchased real estate is their right to the enjoyment of the property. Should you be aware of any problem with the property or location that is prohibitive to that enjoyment, it is another thing on the list that sellers need to know about real estate disclosures in Phoenix. Is there a high school with a band or another source of extremely loud noise? Any factory or other source of the odor or smoke fumes that overwhelm the neighborhood at certain times? Does your bright and cheery home by day become a dangerous landscape at night, due to the presence of criminal activity?
Hazards
Making buyers aware of existing or potential dangers inherent to the property is another thing sellers need to know about real estate disclosures in Phoenix. The laws on this subject vary widely, however, they cover a vast array of potential hazards that homeowners across the country have encountered, and it is highly advisable that you make yourself aware of the laws that govern your property. There are also federal laws, such as those governing lead paint. Basically, if you are aware of natural dangers on the property itself or the surrounding location, such as being near a fault line in areas where earthquakes are more common, you must reveal the data. Problems that have led to the contamination of the property, whether from local commercial activity or caused by a natural source, must also be provided. Likewise, issues with pests, such as termites and their treatment must also be included.
Death
While not a typical subject when it comes to financial transactions, should you be inhabited by ghosts, you will need to report your knowledge of the haunting, in the laws governing real estate disclosure in some states. Commonly, deaths with causes unrelated to any issues with the property itself are likely not required to be disclosed. However, should the cause have been due to a condition of the property, either structurally or otherwise, in most cases this must be disclosed. Sellers would be wise to educate themselves on the specifics of the real estate laws about death when it comes to real estate disclosures in Phoenix.
History
What was fixed, why, and when are among the things sellers need to know about real estate disclosures in Phoenix. As you may be well aware, there are just certain issues with a home that may continue to rear their ugly heads. Was there an issue with water damage in the past, what was the source and was there mold? Was the damage properly remediated by professionals? While it may be easy to temporarily hide an issue by deviously timing the showing of the property, finding yourself tangled up in the web of being sued is a nightmare, with the possibility of financial devastation should you lose your case. Problems in the past which you’re aware of may have even repaired and could even remotely become a future issue, are among the facts about the history of your property that you will need to bring to the attention of your buyers in your disclosure.
As-Is
One important thing seller need to know about real estate disclosures in Phoenix is that even if you are selling “as is,” any known issues with the home that devalue the property must be disclosed. There is a risk of being sued should you fail to disclose information that you were aware of. Laws about what must be disclosed may vary from state to state. you will want to be certain to have everything in writing that comes with the property from the start, for instance, your grandfather clock isn’t included. Conversely, if something is missing from the property, which may not be noticeable on a quick walkthrough, but would be expected to be present, you must also disclose this. For example, you are showing the property on the hottest day of summer, and the buyers see a heating unit, but you know that this is just an outer case and there are no working parts inside the unit, you could easily be sued for failure to disclose this information.
Environmental Concerns
Environmental issues are another critical aspect of real estate disclosures. Sellers must inform buyers about any environmental hazards that could affect the property. This includes the presence of asbestos, radon gas, or contaminated soil. If the property is located in a flood zone or an area prone to wildfires, this information must also be disclosed. Buyers have the right to know about these potential risks so they can make an informed decision about the purchase.
Zoning and Land Use
Zoning laws and land use regulations can significantly impact a property’s value and how it can be used. Sellers need to disclose any zoning restrictions or land use regulations that apply to the property. For example, if the property is zoned for residential use only, it cannot be used for commercial purposes. Additionally, if there are any pending changes to the zoning laws that could affect the property, this information must be disclosed to potential buyers.
Legal Issues
Any legal issues related to the property must be disclosed to potential buyers. This includes ongoing litigation, disputes with neighbors, or any liens or encumbrances on the property. Buyers need to be aware of these issues as they can affect the property’s value and the buyer’s ability to obtain financing. Failing to disclose legal issues can lead to significant legal and financial consequences for the seller.
Homeowners Association (HOA) Rules
If the property is part of a homeowner’s association (HOA), the seller must disclose the HOA rules and regulations to potential buyers. This includes information about HOA fees, restrictions on property use, and any pending assessments. Buyers need to understand the HOA rules as they can impact their enjoyment of the property and their financial obligations.
Previous Repairs and Renovations
Sellers must disclose any significant repairs or renovations that have been made to the property. This includes information about who performed the work, whether permits were obtained, and whether the work was inspected and approved by the relevant authorities. Buyers need to know about previous repairs and renovations to assess the property’s condition and ensure that the work was done correctly.
Utility and Service Providers
Information about utility and service providers is another important aspect of real estate disclosures. Sellers should provide buyers with information about the property’s utility providers, including electricity, water, gas, and sewer services. Additionally, sellers should disclose any issues with utility services, such as frequent outages or problems with water pressure. This information can help buyers understand the property’s utility costs and any potential issues they may face.
Natural Disasters
If the property has been affected by natural disasters in the past, this information must be disclosed to potential buyers. This includes information about flooding, earthquakes, hurricanes, or other natural disasters that have caused damage to the property. Buyers need to be aware of this history to assess the property’s risk and determine whether additional insurance coverage is necessary.
Neighborhood Issues
Sellers should also disclose any issues related to the neighborhood that could affect the property’s value or the buyer’s enjoyment of the property. This includes information about crime rates, noise levels, and any planned developments or construction projects in the area. Buyers need to be aware of these factors to make an informed decision about the purchase.
Insurance Claims
If the seller has made any insurance claims related to the property, this information must be disclosed to potential buyers. This includes information about the nature of the claim, the amount of the claim, and whether the repairs were completed. Buyers need to know about previous insurance claims to assess the property’s condition and determine whether additional insurance coverage is necessary.
Disclosure Forms
In many states, sellers are required to complete specific disclosure forms that provide detailed information about the property’s condition and any known issues. These forms are designed to ensure that buyers receive all the necessary information to make an informed decision about the purchase. Sellers should take the time to complete these forms accurately and thoroughly to avoid any potential legal issues.
In conclusion, real estate disclosures are a critical aspect of the home selling process. By providing buyers with all the necessary information about the property’s condition, potential hazards, and any legal or environmental issues, sellers can ensure a smooth and transparent transaction. Understanding and complying with real estate disclosure requirements can help sellers avoid legal and financial consequences and build trust with potential buyers.
While you may consider holding back information, you’re aware of, which may not be legally required in your state, it’s wise to disclose the information to fend off any possibility of future court proceedings. In other words, you need to disclose EVERYTHING – which may end up lowering your asking price. It’s best to sell directly to Oak Street Properties as is! Learn more about how we can help you by sending us a message or giving us a call at (480) 637-5500 today!