I advise my seller clients to write everything they can that they know about their home on that CT Seller Disclosure Form. Even attach pages, if they needed to. In the state of Connecticut, where I live and sell homes, it is the law.
The penalty for not providing a buyer with the disclosure form, when they make their offer, is now $400.00. Whether it is sold by the owner or by a real estate broker. The state of Connecticut just raised that penalty from $300.00. We will be issued new forms in the coming months.
This is a good advantage for the seller's to take. Most people have maintained their homes. Some have updated them. Many people improve the home, prior to listing it. All good for the buyers. This is good for the sellers, also. It will make their home more appealing to the buyers. Unknown or missing information can be frightening when making such a significant purchase. Better to show off your improvements for your home!
Every once in awhile, we come across a seller who has checked no or unknown, throughout the three pages of the report. Even the lead and mold disclosures are checked, unknown. This can be a warning to buyers. Have they done nothing to this home while they lived there? There seems to be a new kitchen, new doors, new boiler, etc. I suggest asking the listing agent if there might be a list of improvements. Maybe, the sellers don't understand how valuable the seller disclosure can be for the sale of their home. Sometimes we receive a list, sometimes we don't. According to state law estates, foreclosures and new construction properties, are not required by law to fill out this form.
Currently, our state legislatures are updating the form, since the penalty increased. When they do, we will need to update each of our listings with that new form filled out by the seller. Whether they are owner occupied or not.
Regardless, I always advise my clients to have their own home inspection. I refer to it as "cheap insurance" going forward. Many of the home inspectors offer helpful tips on maintenance and changes that they can make, that will enhance the property. Learning about homeownership can be exciting and rewarding!
Click here to access the state's Seller Disclosure Form.
Buyers need to ask a lot of questions when purchasing a home. All kinds of info can be found within the various departments in the town hall. Don't rely on the homeowner/seller or the Realtor. You'd be surprised what info you can uncover while researching the public records/files/. "Caveat Emptor"
Building files will contain information on fire damage. The fire department will advise you to call the town for all fires are reported to the building department. Caveat Emptor!
http://www.bloomberg.com/news/2012-08-28/connecticut-homes-biggest-losers-as-wall-street-cuts-mortgages.html
"The condominium market continued to display increasingly negative price changes. A year ago a typical condo in Connecticut was declining at a 5 - 7% annual pace; this year -10% applies to that same unit." http://admin.business.uconn.edu/portalvbvs/desktopmodules/enewsletter/showarchive.aspx?aid=536
"Sounds great in theory. But buyer-broker Tom Wemett, former president of the National Association of Exclusive Buyer Agents, says practical application is less than precise. Oftentimes, agents adopt a don't-ask, don't-tell attitude just to secure a listing" "What happens is that listing agents go into the property with blinders on; they don't want to know about that stuff. They hand the seller the property condition disclosure form and say, 'Get this back to me so we can provide it to the buyer.' The problem is, sellers never fill out the form correctly," he says. "There also are those within the industry who feel that mandatory disclosure is simply a big waste of time. Sellers are asked questions they are unqualified to answer (Underground storage tank? Infestation?). Mandatory disclosure also gives agents and brokers only the illusion of legal protection. Buyers would be better served, they say, by a thorough property inspection and an extended home warranty" http://www.bankrate.com/brm/news/real-estate/buyerguide2004/disclosures.asp
"Generally new buildings or substantial alterations to existing buildings will require a building permit. Because building permits are issued at the city level in Connecticut, some cities may require building permits for smaller projects as well. West Hartford, for example, requires you to get a permit for air conditioning and heating unit installment, electrical and plumbing work, and sprinkler systems. While parts of the building code are determined by state law, whether your project will need a building permit often depends on the local regulations in the municipality where the property is located." http://www.cityapplications.com/building-permits/CT-Connecticut/bldg-Connecticut.html
I remember years ago a Realtor friend of mine got sued over such an issue. The seller told the Realtor that the house had electrical had been updated. She promoted such to the buyers. Well, a few months after the new buyer's moved there was a fire. It was determined that the cause of the fire was "faulty wiring". The seller never obtained a 'permit' for the electrical work for he did the work himself. Guess who got sued, the seller and the Realtor. The buyer was awarded damages.
"When a seller fails to disclose a material, latent defect, that seller is liable for any costs the purchaser has to pay to remedy the situation. This liability extends to the listing agent. Both owner and agent have a duty to not only disclose but to exercise reasonable diligence to discover any latent defects in the property they want to sell. This means that even if the defect was not readily observable but could have been reasonably discovered by the seller and/or agent, then liability attaches to both. The owner and agent may remain liable even if the buyer's inspector does not discover the defect(s) during inspection" http://www.realestatelawyers.com/resources/real-estate/purchase-sale-agreements/what-happens-a-seller-fails-disclose-defects-whe A quick trip to your local building dept. will tell whether or not "permits" were issued and/or required for updates or improvements that were made. Shoddy workmanship or improvements/repairs that don't meet building code are as much, if not more likely, to get you sued.
buyers must do some minor leg work, have an inspector tour the home, talk to neighbors or past renters failing to ask some some basic questions or worse, to be taken in by a realtor that claims 'there's a few other buyers very interested in this' ploy, is RED FLAG that any new purchase should raise. the state may be real good at spewing out all sorts of requirements, legislation, forms, fee demands, and agency 'make work' process'\s, but they wont be there to pay for the misery that ensues when seller/buyer contract goes to pot. it will be a lawyer intense situation, and THAT alone will cost money that would have been better spent on basic legwork done BEFORE the sale. caveat emptor, ( in other words, cover your own bum!)
In a real estate transaction both the sellers agent and the buyers agent have a vested interest in the sales price, an inherent conflict of interest, (commission is a % of sales price). This creates a bias towards higher prices that equals greater commissions. This price bias is only kept in check by the appraisers and/or 'bankers' not willing to finance "unreasonable" values. Agents, Lenders and Lawyers and the State are all compensated in whole or in part based upon the transaction value. Agents get a % of the transaction value; Lawyers get paid a fee Plus a portion of the Title Insurance cost as a "commission" plus other services; Mortgage providers get a % of the loan plus a bonus for complexity and lower credit ratings = higher compensation (now understand the bad loan bubble?); Appraisers and Home Inspectors are paid a fee for service. If all parties understand conflicts it is better for the consumer. As others have said Caveat Emptor = BUYER BEWARE.