Selling your home? Be prepare to disclose what you know about your home
Whether you have owned your home for a few years or a few decades, you know its quirks, best features, and flaws. When you decide to sell your home, you need to be aware that your experience with your home is something you may have to share with potential buyers. The information disclosed will help the buyer to make an informed decision as to whether to buy the property. If you are selling a home, it is important to comply with these requirements, as failure to do so will allow the buyer to sue you if upon discovering any defects that you knew of but didn’t disclose. Read what must disclose when selling your home in Arizona.
Federal disclosure rules
While the majority of disclosure issues are handled by state regulations, but federal laws apply to one area: lead paint. If your home was built prior to 1978, it may contain lead paint. Your home must be checked for lead paint and a disclosure form completed. In Arizona, if the home was built prior to 1978, seller must complete Disclosure of Information on Lead-based Paint and Lead-based Paint Hazards form.
Arizona disclosure rules
In Arizona, sellers are obligated by law to disclose all known material (important) facts about the property that might negatively affect the value of the property. The Arizona Association of Realtors has a standard form – Residential Seller’s Property Disclosure Statement (SPDS) that helps a seller to disclose all the details that will need to be included. The disclosure statement has six sections that will need to be completed by seller.
Things you should disclose to prospective buyers
The ground rules for disclosure are that you notify the buyer of any significant physical issues with the home. Anything that will be expensive to replace, make the home dangerous or unlivable should indeed be disclosed.
Legal issues
When selling a property, it is important to disclose any kind of legal issue that could cloud the title. For example, if the home is a short sale and needs third party approval this is something that must be disclosed. Another example would be an estate sale. If the home is subject to approval by the estate or probate buyers should be made aware of this fact.
Lead-based paint
Federal law requires homeowners to disclose any known lead-based paint if you’re selling a home built before 1978.
Water damage or mold
If you’re aware of a leak, a damaged roof or any signs of dampness in your house, you need to let the buyers know about the issue.
Hazardous materials
There are some things that can be considered hazardous to one’s health found in a home such as radon gas and asbestos. If a seller is aware of one of these issues, they should be disclosed to a buyer.
Natural hazards
Is your home located in flood zone area? You want to disclose it.
Termite treatment
If your home has been previously treated for termite damage, you should disclose this to the buyers.
Modifications/addition without permit
Have you made any modifications to your home without a permit? Convert back patio to sun room without permit? If so then you are required to let the buyer know about them. Some modifications can change the structural integrity of the home. It can also impact the home’s overall value. So make sure you list any modifications that you have done to the home.
Homeowners associations and covenants
If your home has homeowner association, that should be disclosed up front. The same with any restrictive covenants placed on a neighborhood. For example, if the neighborhood does not allow you to change the color of your home or let you raise livestock, this should be pointed out before the buyer signs a contract.
Noise pollution
If you live in proximity to an airport, railroad or back to major road, it would be smart to disclose to potential buyers there could be points in time where things get noisy. Any loud noises that could influence a buyer from purchasing a home should be disclosed.
Military airport disclosure
Arizona law requires sellers to disclose when a property is located within “territory in the vicinity of a military airport” or “territory in the vicinity of an ancillary military facility”. This alerts potential buyers as to whether a property is located within a high noise contour or an accident potential zone.
When in doubt, Disclose!
If a seller has factual information about the home that could potentially be material to a person in the buyer’s position, you are encouraged to disclose them. If a seller violate the disclosure law by misrepresenting or not disclosing required information, the buyer may pursue legal action against you for failure to disclose, fraud, or misrepresentation (intentional or negligent).
How do I disclose about my home?
When you are selling your home in Arizona, your Realtor will ask you to fill/complete the Seller Property Disclosure Statement (SPDS). The SPDS is a standard form created by Arizona Realtors® Association. SPDS gives seller the opportunity to disclose about condition of the property and is designed to protect the Seller.
Selling your home in Phoenix AZ
Contact Us or call Swee Ng at (480) 721.6253 today to discuss your potential Phoenix House Value and our comprehensive marketing plan. We will prepare complimentary competitive market analysis (CMA) to find out what your home is worth at today’s market.
Swee Ng, Realtor and Phoenix East Valley resident specializing in win-win real estate transaction through great communication and fighting for his clients’ best interest. After all, this is more than real estates, this is about your life and your dreams.
If you are looking to buy or sell your home in Phoenix AZ and surrounding area, we hope you will consider us. Contact us today for complimentary consultation.
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