Selling a home? Fresh paint and curb appeal are a must, but there's a secret weapon even more important: transparency.
Disclosure laws prevent sugarcoating your property and ensure buyers know everything about what they're getting to help them avoid wasting money .
These laws vary by state, but here are 13 key things you, as a buyer or seller, should be aware of.
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1. Water damage
Water can do major damage to a home, whether from a flood, a leak, or a plumbing issue. If your home has suffered water damage in the past, you may need to disclose this to potential buyers even if the issue was addressed and remediated.
Own a car? Here's 7 warning signs you're paying too much for car insurance. 2. A death in the home
Some people are uncomfortable purchasing a home where someone has died, and certain states support them. In some states, you are required to disclose that information even if it occurred before your time in the home.
In other states, you’re required to disclose deaths in the home only if they were violent or criminal. And in some states, you have to let the potential buyer know if you suspect the house is haunted.
3. Neighborhood noises and nuisances
Nearly everyone has encountered a nuisance neighbor at some point. But if this bad neighbor goes beyond the occasional loud barbecue and treads into bothersome or criminal territory, you may need to disclose that. Especially if formal complaints have been made.
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4. Lead paint and plumbing
While lead paint is often assumed to be present in older homes, some states will require you to disclose knowledge about both lead paint and lead plumbing. You won’t be required to remediate it, but that knowledge transfer is necessary.
5. Asbestos
Typically, when asbestos is found in a home, the homeowners immediately perform remediation for their own safety. But even after remediation has been done, that information still has to be shared with the buyer.
6. Toxic leaks
It’s more common to hear about a toxic leak in regard to a train or other mass transit carrying chemicals, but toxic leaks can also happen in your home.
If a hazardous substance has ever leaked on your property, you may be required to disclose that to the buyer.
Get Out of Debt for Good: Try these 6 clever ways to crush your debt 7. Flood plain hazards
Floodplain mapping is public domain, but you still may be asked to disclose the floodplain information and any historical knowledge of floods in the area.
8. HOA facts and figures
While homeowners association (HOA) rules and regulations are disclosed during the buying process, even more important information needs to be shared.
Potential buyers should be informed of the association’s reserves and financials so they're aware of the HOA’s financial health or the potential for future assessments.
9. Repair history
If you’ve done major renovations, like completely gutting a kitchen or adding a bathroom, then those updates should be disclosed to the buyer. This also is relevant when you’re disclosing information about permit or zoning changes.
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10. Easements
If a neighbor has an easement through your yard that gives them access to their driveway or something on your property, then that needs to be disclosed.
Learning that your neighbors have to cross your front yard to get to a public road shouldn’t be a surprise after buying.
11. Pest infestation
In some states, you only have to disclose a pet infestation if it’s currently active. But in others you have to disclose an infestation regardless of when it occurred. An infestation could include anything from mice to termites to bats and everything in between.
12. Structural damage
Most buyers notice cosmetic changes they would like to make in a house when they’re house-hunting. But they don’t expect to find out there’s a cracked foundation or knob-and-tube electrical after their purchase.
These structural concerns should be disclosed during the buying process. Buyers should also have a full home inspection done before they finalize the sale to uncover any major issues.
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13. Environmental concerns
If there are major environmental concerns from transit pollution or a toxic waste site, or there’s an issue with the water in the area, they need to be disclosed before a buyer signs on closing day.
Bottom line
Disclosures are different from state to state, so it’s critical that sellers check state disclosure laws before deciding what they do and don't have to share.
Some states are more stringent than others. You want to be sure you’re sharing the required information without sharing more than you need to.
And if you’re a buyer who has been saving for a down payment in a high-yield savings account , you won’t be happy to learn that your dream house has a nasty surprise.
Money tips that can work for everyone
No matter what your bank account balance is, there's always an opportunity to optimize and improve your finances. Here's a quick checklist of things you can look at today.
Focus on paying off your debt . Debt can hold you back from making progress with your overall financial well-being. Aside from cutting expenses, there are tools that can help you pay off debt faster like balance transfer credit cards and debt counseling.
Earning extra income can give you breathing room. If finances are tight, earning some extra money to supplement your income can make a huge difference. A new job is one option to consider, but if you're not ready to make a big change or already retired, a part-time side job could be a better choice.
Cut your expenses. It sounds painful and so not fun, but it doesn't have to be. Take a look at your biggest expenses because that's where you'll probably find the biggest savings. For example, auto insurance rates have been soaring so shopping around for a new insurance company can be the fastest way to cut your bill. Also, look for ways to cut your grocery bill (despite rising inflation).
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