What information does a seller have to disclose to a buyer?
Whilst any seller will want their property to be seen in its best light, they have an obligation to disclose anything that would materially affect a buyer’s decision to buy their property. So, what needs to be disclosed?
For most buyers they will be viewing a property at its best; perfectly organised, expertly staged, and clean. However, the viewing alone does not give them all the information they need to enable them to make an informed decision on what offer, if any, to put forward and whether they wish to buy a property.
BEFORE, when a sellers property is marketed they should have completed a ‘Property Information Questionnaire’ These questionnaires will vary from selling agent to selling agent, however, all should include certain details. The selling agent should read the completed form prior to marketing to ensure all the marketing details are correct and to make sure all perspective buyers are well informed.
If a seller doesn’t know an answer to a question on the questionnaires, then that’s fine, however they should provide as much information as possible.
The information will be used by the conveyancers representing the seller and the buyer during the conveyancing process and will form part of the contract for the sale of the property.
Details included in the seller’s disclosure form
- General Property Information (address, tenure, parking etc)
- Disputes or complaints regarding the property
- Alterations & changes to property (i.e. extensions, conservatory’s)
- Notices (i.e. local planning or developments nearby)
- Specialist Issues (i.e. damp, dry rot)
- Utilities
- Insurance
- Boundaries and access
- Other general property information (i.e rights of way, flooding, crime)
Generally, a seller is required to include all the house defects – past or current, or any major constructions done either on the foundation, roof, the structure or the house systems (plumbing, electrical, heating, septic, etc.)
Below are examples of disclosures by sellers in the questionnaire;
· Leakage on the roof, doors and windows
· Knowledge of a neighbouring construction or development project
· DIY renovations
· Past occurrences of flooding
· Local environmental risks
· The existence of radon, lead paint, mould, or asbestos
· Faulty/temperamental with the plumbing or electrical systems
· Soil contamination
· Wildlife or infestations
· Property line clashes
· Bankruptcy proceedings
· Recent crime or death in the property
· Neighbourhood noise or nuisances
· Malfunction of appliances
· Cracks in the houses’ foundation
Ultimately, anything that poses a threat to health or could potentially effect a buyers decision should be included in the seller’s disclosure form.