3 Must-Reveal Disclosure Facts

Three important things to disclose before your home is sold.

When it comes to selling your house, the question of disclosure often looms large. In today's discussion, we'll explore what sellers should disclose to potential buyers, drawing from real-life scenarios and valuable advice.

Recently, I had a conversation with a homeowner who faced a dilemma regarding a patch in the ceiling that suggested past water damage. The issue had occurred before the current owner took possession, and the roof had since been replaced. The homeowner wondered whether to disclose the previous leak, and my advice is clear: when in doubt, disclose.

Disclosing known issues, especially those that have been fixed or remediated, is the safest route. If you are certain about a past problem, share that information with potential buyers. This principle applies to various scenarios, such as having a sewer report with identified issues or an inspection report from a previous assessment.

In the state of Colorado, due diligence documents are crucial, and sellers are obligated to provide readily available documentation. However, if you no longer have access to certain documents, you are not required to disclose them. For instance, if an inspection report from years ago is no longer in your possession, there is no obligation to disclose information that cannot be verified.

One cautionary tale serves as a reminder of the importance of disclosure. A seller failed to disclose a furnace issue despite having a professional report indicating the need for replacement. The buyers, relying on the seller's assurance of recent servicing, found themselves with a non-functional furnace shortly after moving in. Legal action ensued, and the seller had to cover the cost of the new furnace.

The key takeaway is clear: disclose, but only if you are certain. If a professional opinion highlights a problem, it must be shared with potential buyers. Avoid relying on non-expert opinions, such as those of neighbors. By being transparent about known issues, sellers provide buyers with the information needed to make informed decisions.

If you have questions or specific situations to discuss, don't hesitate to call or email us. Our team is here to help you navigate the disclosure process and ensure a smooth home-selling experience.