Seller's Property Disclosures
Full Disclosure of Property
Recent legal decisions and new legislation provided that the seller has the responsibility for revealing to the buyer the true condition of the property. the concept of selling a property "as is", with the buyer assuming all responsibility to determining the property condition, is not acceptable in the present marketplace. The seller must disclose the know condition of the property to the buyer. This information should be made available to the buyer as soon as possible.
CHARM OR IRRITANT?
Having lived in this property the seller has become accustomed to the peculiar conditions that may have developed. But for the buyer, that peculiarity may be more than a mere inconvenience. It may be an irritant which the buyer cannot tolerate. It is important for the seller to review the condition of the property with the real estate agent and take special note of any problems on the Disclosure Statement. Civic Code Section 1102 required that the seller provide the buyer with a completed "Real Estate Transfer Disclosure Statement".
ALL SYSTEMS GO
A basic assumption in every sale is that the house and systems in the house are functional. For example, the roof will hold out the rain and sun, the hot water heater will provide hot water, and the heater will provide heat. If it is know that any of the systems do not function property, such facts should be included in the purchase agreement and acknowledged by the buyer.
An "as is" purchase is perfeclty acceptable, as long as the buyers understands exactly what the "as is" condition entails. Thus, it can be said in the purchase agreement that the buyer accepts the roof and the plumbing and the electrical system in their present condition and acknowledges that they may have defects. This acknowledgment provides a defense for the seller if it is claimed he did not disclose the problems.