Many vendors wonder whether they should disclose everything about their homes when they sell their property. This suggests they’re sneakily speculating if there’s any information about their house they shouldn’t mention. It’s a fair query since they don’t want to prejudice the sale. The serious enquiring will occur at viewing time when they’re showing prospective buyers around the property. Initially, they should ask their real estate agent what to reveal and what to keep mum about. Your agent knows what type of things will impact the buyer’s perceptions of the property. The agent will inevitably advise the vendor not to hide anything about the property. It’s sound advice since there can be legal ramifications that may affect the sale should the seller evade the truth. We take a look at what you should disclose to potential buyers when you sell your property. Transparency is your best and, frankly, the only option.
Be Honest When You Sell Your Property
Being evasive about issues when you sell your property will likely prove costly. The homebuyer is making the biggest investment of their lives and will scrutinise everything. If they’ve done their homework they will know to ask lots of questions. Perhaps you’ve been lax about undertaking repairs. The buyer quizzes you if anything needs taking care of. Should you be untruthful in your response then you’ll have breached your contract. If the buyer doesn’t press the issue but discovers the problem down the track it will cost them. That’s likely to cost you more. Moreover, it might result in the contract being torn up. You must be honest about anything that may result in the buyer bearing unforeseen expenses. Likewise, you must lay bare any council issues or problems involving zoning and construction. If the government plans on building a runway through your backyard you’d better let the buyer know.
It shouldn’t be a huge leap of the imagination to understand the principle at play here. It’s not just a matter of doing unto others as you’d have done to yourself, it’s in the contract. For instance, if your property is riddled with asbestos you’d alert prospective buyers. It wouldn’t auger well for you or your agent if they developed a respiratory condition as a result. Your failure to disclose this matter could mean that you’re culpable for their ill health and time off work. It may give them the right to demand their money back if such conditions have factored into your agreement. It is wiser and much nobler to conduct repairs, renovations and upgrades before you sell your property. However, there is a bright side. If the matter is more or less trivial then have to volunteer the information. It’s a simple case of buyer beware.
Sell Your Property: Pre-Contractual Disclosure Obligations
Pre-contractual disclosure obligations refer to those aspects of the dwelling that must be disclosed before drawing up the sales contract. In Australia, these mainly involve defects or restraints in the property title. However, they also cover a range of other factors. These you must know when you decide to sell your property.
Australia maintains strict guidelines regarding zoning. This especially involves properties located in flood and bushfire zones. Sellers need to disclose if their property is situated in an area that falls within these boundaries. If they’re selling their property in Tasmania, it is also necessary to disclose grave sites. Burying the truth about graves is not acceptable in Apple Isle. It will have the dead turning in their graves.
Covenants are rules relating to a house’s location that property owners must abide by. They may include requirements of home-front finishes or landscaping. If the rules are binding for all homeowners in the area they must be disclosed before you sell your property. Otherwise, the buyer may paint their house bright pink only to face censure by angry neighbours. Likewise, their beloved scale-model dinosaur statue might be forcibly removed.
Easements pertain to the proper use of land for a specific purpose. These rights typically involve access and are inviolable regardless of ownership. Examples include driveways, telephone lines, and sewer pipes. For instance, you cannot decide to build a medieval drawbridge across a shared driveway. That wouldn’t just be rude (and complicated) but illegal. Nevertheless, most of us have thought about doing it.
If you sell your property while it’s still under a rental agreement, you must disclose the lease to prospective buyers. You need not imagine the ruckus that would ensue if you didn’t. It would come as quite a shock to the buyers when the time came to move in. Imagine their surprise when they opened the door to discover a family of Indians staring back at them in wonder.
Restate agents will invariably advise sellers to undertake renovations or repairs to the property before marketing the house. This not only covers potentially hidden liabilities but improves the dwelling’s appeal to potential buyers. Unless the home is designated a renovator’s dream, in which case you wouldn’t bother, the costs are recouped later. The profit from the house sale usually covers any odd jobs. Nonetheless, the owner must relay the details about all construction work to interested buyers. They must provide documentation proving all the work was approved and completed. Any unapproved improvements must likewise be relayed.
However, sellers must disclose details about any construction work on the property to interested buyers. Sellers need to provide documentation showing that all the work done on the property has been approved and completed. Likewise, building improvements that do not have full approval must also be disclosed. The seller is advised to use only contractors who’re registered in their respective states. Real estate agents will have a Rolodex of good contractors they regularly use. Because your real estate agent understands the importance of securing a reasonable profit they won’t recommend any overpriced contractors.
Sellers need to disclose any property defects. Buyers will insist on a thorough home inspection before signing contracts or sales agreements. Many buyers have acquired a property, only to discover that it comes with a set of expensive problems. As such, most potential homebuyers are conscious of those types of hazards and, understandably, don’t want to share those misfortunes. Sellers may be liable for repairing defects before any sale goes through. Similarly, any deceptions won’t facilitate a genial rapport between the buyer and seller. Again, honesty is not only wise and noble, it’s the best and only policy to choose.
When you sell your property you’re obliged to reveal everything about your home if the buyer asks. But even if they don’t ask certain questions it’s prudent to advise the likely purchaser. You may be in a hurry to shift your old house and upgrade, but expedience carries costs. It may even result in penalties. Do unto others as you would have them do unto you. That’s not just preachy biblical text; when it comes to selling property it’s penultimate wisdom. If you hoped to avoid paying for repairs or disclosing anything that may dissuade the buyer you may regret it. However, you’re not alone in your property sales journey. Your real estate agent is there is help you avoid any of the pitfalls that may beset the naïve. Perfect Agent will help you find the ideal real estate agent to keep you on the straight and narrow. Contact us!