If you're in the process of buying a home, you're probably
familiar with a Seller's Property Disclosure (SPD). It's exactly what it sounds
like--a legal document that the seller fills out to disclose any known defects
that may negatively affect the value of the home (such as known termites,
leaking roofs, flooding, pets, and even deaths in the home). Similarly, the SPD
can also include any work and upgrades that may positively affect the value of
the home. Here's what you need to know:
1. Seller's Property Disclosures are extremely
important--for both the buyer and the seller. The buyer must (carefully!)
review & sign the SPD when submitting an offer. The exception, however, is
foreclosures or bank/corporate-owned homes. These homes will typically not have
a Seller's Property Disclosure, as these sellers cannot make any guarantees
about the condition of the property.
2. Seller's Property Disclosures are readily available for
EveryHome agents to access. Interested in seeing one for a home you like? Just
ask us.
3. Seller's Property Disclosure requirements vary by state
and county, but sellers are generally obligated to disclose everything that
they know. Unfortunately, a lack of proper disclosure can lead to messy
conflicts down the road.
4. Seller's Property Disclosures are very different than
home inspections. Generally, the sellers do not have the knowledge of a home
inspector, and therefore an inspection can reveal quite a bit more than a SPD.
We always recommend making any purchase contingent on a satisfactory home
inspection.
