There’s an old adage that what you don’t know won’t hurt you, but when it comes to buying real estate, that’s not the case. After all, you need to know if the dream house you’re buying has a history of flooding problems or has a defective roof. That’s why full disclosure – a seller’s obligation to disclose facts about properties for sale – is critical when it comes to a successful real estate transaction. Buyers need to know material facts about a home – that is, anything that could affect the sale price or influence the buyer’s decision to proceed with the purchase.

Most post-sale disputes and lawsuits center around defects and disclosure. Many of these disputes can be avoided if proper disclosures are made. That’s why most states, including Texas, require some type of formal seller disclosure. A San Antonio REALTOR^® can guide you through this process and let you know what you should disclose about the property you’re selling.

What’s on a disclosure form?
A disclosure form is a notice certain sellers are required to give would-be buyers on or before the effective date of a real estate contract for sale, covering the seller’s awareness of any defects in the property in reasonable detail before the sale.

For example, if you’ve had a termite problem in the past, that’s something that prospective buyers should know. Or, if the foundation needs repair, buyers need to know that, too.
There are also federal laws about disclosure. For example, someone selling a home built before 1978 must disclose any known lead-based paint problems. Your San Antonio REALTOR® will be aware of the latest disclosure state and federal disclosure laws.

As a seller…
Intentionally withholding information about a property you sell can have serious legal ramifications. Talk to your San Antonio REALTOR® and make sure you understand your responsibilities. You don’t want to inadvertently leave something out and have to deal with expense, hassles, and possible legal consequences later.

Don’t be afraid to disclose information about your property. Disclosure laws were created to protect buyers, but they also protect sellers. If all the information about a property is revealed up front, you are less likely to be involved in disputes after the sale. Also, if you’ve had inspections done in the last few years, make that information available to the buyer.

As a buyer…
You want to make a solid decision, and that starts with having all the pertinent information about the property. Look closely at the disclosure notice provided by the seller. If any items concern you, ask questions and investigate.

There are other steps you can take to protect yourself and your financial interests. For starters, make sure you hire a licensed inspector to give the property a thorough examination. For a few hundred dollars, you get a professional to look into all the systems and components and report to you where deficiencies or potential problems exist before making a commitment.

When you have specific concerns, or when the inspector suggests it, you may also want to hire specialists to look at certain things, such as a structural engineer to examine a potential foundation problem. Yes, you will have to pay for these professionals, but you will want to know if there are expensive repairs likely in a property’s future before it becomes your property.

For everyone’s protection
Disclosure is a necessary facet of a real estate transaction that helps to protect both buyers and sellers and ensures lots of smiles on closing day – and beyond. If you have questions about disclosure, ask your San Antonio REALTOR^® for advice.

For more information about buying and selling property in the San Antonio, visit the property search section of SABOR.com.