Disclosure laws in more than 30 states require home sellers to tell prospective home buyers and agents about leaky roofs and other problems, according to the National Association of Realtors. There is however an often a gray area involving the disclosure of problems the home seller may not even know about, such as a long-ago flood or hidden mold.
Home owners who really want to sell can exaggerate the size of their lots, cost of monthly utilities and annual property taxes, the amount of nearby noise and traffic and this is not a new.
Disclosure of environmental problems such as radon gas or underground fuel tanks is causing states to increasingly pass laws requiring homeowners reveal this information to home buyers. California, for example, has a checklist of required disclosures which is so lengthy that small businesses have sprung up that help home sellers prepare the forms.
In any real estate market buyers are encouraged to do their own due diligence and not rely exclusively on what sellers and agents say. Hiring an independent home inspector or home-inspection engineer, not referred by the seller is highly advised.
Here is a listing of white lies and common misrepresentations that buyers may hear as they shop for a new residence, according to real-estate experts and state regulators:
Disputes about property dimensions such as the square footage of a house or condo or its exact property boundaries are common. This can affect lender appraisals.Low appraisals are a leading cause of ruined deals in today's market.
Termites and mold rank are among the top complaints. A basic home inspection doesn't include a look inside walls or underground for termites and mold. Mold and radon gas testing is also not generally included. Home buyers must order these inspections separately. Faulty wiring and old plumbing are other inside the wall problems, which also may require specialists.
Flooding is also another problem which the home seller may not really have been aware of. A general home inspection doesn’t catch this unless the sewer line was visible from the basement or water backed up into sinks and tubs or toilets.
Sometimes sellers simply underestimate utility bills, homeowner association and condo dues or forget to include recent or expected increases. Annual taxes can also be deceptively low because of unrecorded improvements like decks and finished basements Home buyers should ask to see recent bills, and check with the tax assessor's office for up-to-date information.
Sellers may claim they live in a quiet neighborhood, but there’s actually a barking dog next door and idling buses nearby or a supposedly friendly playground which attracts teenagers at night. View the property at different times of the day, talk to neighbors and look at the local newspapers and blogs to get a feel for a place. Check with police for crime.
