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Disclosure forms - opinions
We are selling our house as For Sale by Owner (since we will be losing about $30k on the sale). DH and I are having a huge disagreement on the disclosure form. We have some minor cracks that we have gotten checked out and fixed - all settling issues and no structural issues. The thing we are disagreeing on is whether to put it on the disclosure form or not. I want to put: Minor settling, no structural issues (per professional contractor). DH wants to put: No issues.
My opinion: Buyer will see the repairs (minor cosmetic issues but visible) and if it is not on the disclosure form, the buyer will wonder whether there are bigger issues that we are trying to hide - and possibly they will want to sue us. Furthermore, since there are no structural issues, why NOT tell them.
DH's opinion: If the issues are fixed, there is no need to disclose - there are no issues anymore. His argument is that he doesn't want to turn away buyers because of "non-issues" or have them demand that every minor cosmetic issues is fixed professionally.
What is your opinion? We are at a gridlock and DH does NOT see my side at all - I guess I don't really see his side too much either. I don't trust that people are not going to jump at any opportunity to sue and I can't see the big deal in disclosing.
TIA
Re: Disclosure forms - opinions
DH and I JUST litterally faced the same exact dilema with a hairline crack in our basement. We too had it looked at and it was determined that there were no structural issues.
However, our disclosure forms asked if there had ever been any issues at anytime and they are pretty specific questions.
We hemmed and hawed and decided that honesty and truthfulness were always the best policy to take just from our conscience standpoint and also legally and financially down the road. We disclosed the crack. We also disclosed that our deck didn't have a building permit and that the builder had to professionally regrade our backyard to handle some drainage issues.
We have a contract now and are due to close on the 29th. None of the buyers who reveiwed our disclosure statements had any problems with our info.
You should be honest. And make a clean break from your house with a good feeling.
Is is a new home or an older home? What kind of cracks? Foundation cracks? Drywall cracks?
I'm leaning toward disclosing what repairs were done.
The only way I would consider not disclosing is if the settlement was because the house was a new construction. Most newly constructed homes settle, and that's why there's usually a clause in the construction contract that they will come back up to a year later to fix cracks and things that arise from settlement.
I think the form varies by state (I know PA has its own) but if it's similar to the one used here, I believe that you are legally obligated to include it. The way I see it phrased here (I pulled up the form) is "Are you aware of any past or present moving, shifting, deterioration or other problems with walls, foundations or other structural components".
If it's similar for you, I would included it and provide the documentation of repairs. You are aware of the issue and if it comes up during inspection, you will have been caught lying on the disclosure. That would throw everything else you've said about the house into doubt.
I dont know what state you are in, but in NY, even tho there is a law that you have to fill out a disclosure, the failure to do so is that you have to credit the buyer with $500.00. My attorney recommended that we do just that because then the person can never come back to you for something that you didnt disclose -because you had no idea that it existed.
He told me that real estate people tell sellers they HAVE to fill one out. No, you dont!!!
It is a newer home built in 2005 - there are some hairline cracks in the drywall and one minor crack in the foundation - we had all looked at and they were all deemed to be settling of the house and not structural issues.
The whole point of the disclosure form is to do just that, disclose the issues and what was done to resolve the issue.
I would rather someone know upfront as opposed to finding out later during the inspection and then having the buyer think you are hiding things.
Thanks for the responses. I really want to disclose the issues too - both since it is the moral thing to do (and at least likely the legal thing to do in this case). If I was the buyer, I would want to do this too. It was obvious that some cracks had been fixed by the previous owner but he did not disclose - this is DH's argument. My argument is that just because the previous owner didn't disclose and we didn't sue him, doesn't mean that we should do the same thing!!!
I am thinking I will have to put my foot down on this one!!!
If the settleing was enough to put a crack in the foundation I'd disclose it. You guys have done the right thing about fixing the cracks and getting someone to make sure that there are no structural issues, so it should be fine. As a porspective buyer I wouldn't be detered at all.
As a buyer, I would not be detered by the disclosure of a problem that has been fixed. If anything, I would be more likely to consider the house, because it shows you have made an effort to properly maintain it. Stick to your guns on this one.
Agreed. You saw an issue and had it fixed. That would make me think you would have taken care of other things within the house as well.
We're in contract on a house where the last prospective buyer walked away at the inspection stage because they found settling in the house. We found out about it before our inspection so there were no surprises and we can't/won't use that now to get out of the contract like the last buyers did.
The law on this is state-specific. In my state, if a client wanted to list their home, they would have to disclose any latent defects in the home that they know about. This issue would fit that test since it is a defect and you know about it. You can contact a competent, licensed broker in your state to ask a question about sales law or contact a real estate attorney to find out what type of disclosure you have to give in your state.
The other posters are correct: This will come up on the inspection. It's my opinion that having things out in the open is the only way to do business. Your husband is likely fearful that cracks will deter a buyer, but it's my experience that things like that are no more likely to deter a buyer than any other item. You're not going to lose a sale over putting this down on the disclosure form, but you might if you don't disclose it and someone finds out in the inspection.
Thank you all so much for all the input. We put on the sheet that there are minor settling cracks that have been fixed and that there are no structural issues (per professional contractor).
I feel so much better having that on there - and you are all right, they would see it during inspection anyways, if not during the open house/showing.