As a part of buying and selling the house, there comes a stage known as ‘Disclosure’. First-time buyers may not be familiar with this term but anyone who has purchased a property in the past should be well aware of this step of a real estate transaction. The process of disclosure is step involves the seller disclosing any issues with their property with the buyer through a property disclosure statement. The exact information that is needed to be disclosed varies from state to state. As for first time buyers what is property disclosure statement and why is it important is the question they think of and here is why-
What Is PDS ?
The Property Disclosure Statement is a legally binding document that involves the buyers and sellers and is usually provided by the seller to the buyer before writing an offer. It should include information on liens, judgments or any information required by the law. It must be delivered to the buyer or buyer’s agent before the signing of the binding contract details. State laws may vary for disclosure agreements but it is usually attached to the contract offside conditions.
Why PDS is important?
To ensure a safe and legal means of buying and selling real estate, a variety of safety precautions must be taken. Here, comes the important role of the ‘property disclosure statement’. The disclosure process entails the seller informing the buyer of any issues with their property. Now the issues can range from the actual problems in the physical structure of the property to the neighbourhood related problems, and the things that may have happened in the house in past. Property disclosure statements help buyers by bringing the existing defects or major repairs of the property to their knowledge. These are usually flaws that a customer would not discover just by taking a peek at them. Construction without permission, plumbing leaks, termites, mould, leaking windows, doors, and disturbances near the property are just a few examples. It also offers protection to sellers from liability for issues they let buyers know about before the sale is finalized.
The property disclosure statement may appear to be nothing but just a piece of paper, however, it is a potent real estate legal tool. The property disclosure statement is a vital component for putting the buyer at ease in any state where disclosure statements are considered obligatory for residential real estate transactions. The property disclosure statement might act as a form of a warranty for the Buyer.
Nobody hates to admit if their property has any problems when they're attempting to sell it. However, by preparing a detailed property disclosure statement, one can not only assure legal compliance but also safeguard yourself against any future legal action. Therefore property disclosure statement is one of the most crucial aspects of the selling process and hence it becomes important to ensure that it is handled correctly to complete the transaction process.
You have to keep in mind that the sellers are required to only reveal all known problems. They will not be held responsible for problems they aren’t aware of. And that’s another reason for the buyers to get a home inspection done, to root out any potential problems. It’s best to consider hiring an inspector to estimate the cost of rectifying any listed or non- listed defects.