You are legally obligated to follow federal, state, and local disclosure laws for real estate transactions, reporting any information about defects with the structure or other pertinent facts you are aware of that could ultimately affect the property’s value. In addition, you should discuss with an experienced professional even the most minor of issues that could infringe upon the use, value, or enjoyment of the property in its entirety. Disclosure laws are one reason you should keep careful records of all work done. You should also maintain possession of the disclosure form after the closing for three years to protect yourself.
In addition to structural or other issues with the home itself, another way to fail to disclose would be in misrepresenting the property. For example, you schedule a showing appointment for potential out-of-town buyers to stop by the property, intending to hide the noise factor of a nearby airport or the time of day the smells from a nearby factory are pouring in the windows, and you don’t mention anything. Read on to discover the consequences of not disclosing problems with your The Dallas Fort Worth Area house before selling before you find yourself learning them the hard way.
Legal Action
One of the consequences of not disclosing problems with your The Dallas Fort Worth Area house before selling is facing legal action. Failing to disclose material facts about the property when you sell your home should be avoided because the buyers are highly likely to take legal recourse against what is considered real estate fraud. If the problems with your home have you concerned, a direct sale of the property as-is may be your solution. Like those at Freedom Homes Texas, a direct buyer will detail the amount your home is likely to garner on the traditional MLS vs. every figure used to calculate an offer for a direct sale. At Freedom Homes Texas, our goal is to help you earn the highest possible profit on the deal, even if it isn’t with us.
Legal Judgement and Court Costs
Another one of the consequences of not disclosing problems with your The Dallas Fort Worth Area house before selling, in addition to the time, energy, and stress you will expend dealing with the aftermath, you could end up with a judgment against you in the tens of thousands or more.
Paying for Repairs or Damages Suffered
After closing, you are still responsible financially for paying for any of the consequences experienced by the buyers from your not disclosing problems with your The Dallas Fort Worth Area house before selling. If a repair is needed, for example, a discovery of unpermitted work you performed, it means you’ll likely be paying for the tear-out and replacement to make it right, along with the permitting fees you were trying to save. Similarly, if medical treatment should be necessary because of a health hazard, the hospital bills will be yours as well.
What Are the Benefits of Being Honest and Open When Making Disclosures?
All of these disclosures may appear to complicate your life by forcing you to confront certain potentially depreciating characteristics of your property. Is there any compelling need to be forthright and honest in these disclosures?
Consider the case where you sell your The Dallas Fort Worth Area property and fail to disclose that the house has a large termite infestation eating away at the foundation. Inevitably, the buyer learns the problem and realizes that exterminating the vermin and repairing the house’s foundation will be costly. The buyer may file a lawsuit for breach of contract or deception.
Consider another scenario. Before the purchase contract is signed, you do not disclose the termite infestation history. The buyer employs an inspector before closing, who finds the termites right away. The buyer discovers that you failed to mention the problem, loses faith in you, and cancels the deal.
In any situation, the buyer’s “surprise” will just make things more difficult for you. As a The Dallas Fort Worth Area house seller, the best policy is to be honest on your disclosure form.
The experienced direct buyers at Freedom Homes Texas can help you with what you should and should not disclose to help you avoid the consequences of not disclosing problems with your The Dallas Fort Worth Area house before selling. At Freedom Homes Texas, we understand the importance of communication; our direct buyers stop and listen to your questions or concerns, with no pressure or obligation to work with Freedom Homes Texas. Why not save money and time by selling your house directly to Freedom Homes Texas and avoid the prep work, repairs, showings, and paying high commissions or other fees at closing. When you make a direct sale to Freedom Homes Texas, we want you to agree that the cash offer for your house is fair because we want you to feel good about working with us long after the sale. Contact Freedom Homes Texas today at (972)737-7571 to learn more.