When a property is being listed, there are several documents and forms that the owner signs and fills out in order to get the home on the market. The main document is the Listing Contract, but no less important is the Sellers Residential Real Estate Disclosure. That’s really a mouthful to say…so when speaking about it, I usually refer to it as the Sellers Disclosure. Indiana state law requires that the owner of any home must fill out and provide this form unless it is an estate sale, bank owned or a new construction home. The Sellers Disclosure essentially discloses the condition of the home to the best of the Sellers knowledge. This includes the condition and age of the roof, condition of the foundation, heating, cooling, electrical and plumbing systems, all appliances, and much more…essentially every feature of the home. It also states whether the owners knows of any problems with hazardous substance like radon or mold, encroachments on the property lines, judgements or civil actions that would affect the property, and other things that would have an adverse effect on the value, condition or habitability.
So, if I’m representing either the Seller or Buyer, the Sellers Disclosure is a great document to have. Anything that promotes and encourages the truth is worthwhile. If a defect is known before making an offer or during the inspection process before closing, then both parties can deal with it out in the open while Buyers and Sellers are still negotiating. If you are a Buyer or Seller, the last thing you’d want is a surprise situation where a huge defect is discovered after the final closing. I certainly want my client to be happy, and want everyone to be treated fairly.
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