Before putting an offer on a home, one of the most important things you need to do is go through the seller’s disclosure statement. In Indiana, sellers must make certain disclosures to provide transparency and help buyers make informed decisions.
The disclosure list is long, and it can be hard to remember what potential issues you need to look out for. So, here are some of the most common disclosures home sellers must make.
Structural issues
Sellers should disclose any known problems with the foundation, roof or overall structural integrity. This includes cracks in the foundation, sagging roofs or any previous repairs to resolve these issues.
Water damage
Water damage can lead to structural issues, mold, mildew and a host of other problems when left unfixed. Therefore, a seller must include the following in their disclosure:
- Leaks
- Any history of flooding
- Poor drainage problems
- Water stains
- Warped materials or structures
If the seller made repairs to address water damage, they should give you the details. This includes what repairs were done, who performed them and whether they were successful in resolving the issue.
Lead paint
Lead paint can severely damage the brain and central nervous system. For homes built before 1978, federal law requires disclosure of any known lead-based paint hazards. Sellers must provide buyers with a lead paint disclosure form and any records available.
Asbestos
Similar to lead paint, asbestos is a common danger among older homes. It was typically used for various building materials before it was banned in 1989 for its carcinogenic effects.
Home sellers must disclose any known material defects on the house, which may include asbestos.
Legal issues
Aside from potential hazards on the property, the seller must also disclose any legal issues related to the property. These issues can significantly affect the property’s value, usability and, ultimately, your decision-making process.
Common examples of real estate legal issues include:
- Liens
- Easements
- Zoning violations
- Property disputes
- Restrictive covenants
- Pending legal actions
Generally, it is wiser to wait for the seller to resolve these issues before you put down an offer. Otherwise, you may use them as a basis for price negotiation.
What if you find out the seller violated disclosure requirements after you bought the home? In this case, you might have a case for misrepresentation or fraud. Consulting a real estate attorney can be beneficial in navigating your specific situation.
