5 Disclosures Every Realtor Needs from a Property Seller

Selling a property can be considered challenging depending on the market conditions. Some or the other mistake ends up costing sellers in the long run.

According to Investopedia, the most common mistakes among property sellers include getting too emotional, setting an unrealistic price, not hiring a real estate agent, or skimping on high-quality photos. Another major one may involve a lack of disclosure to the real estate agent.

Before listing a property on sale, its owner is legally required to disclose certain crucial information to their realtor and buyer. Any neglect in this regard can turn into hefty future costs and even a legal suit. This article will discuss five major disclosures to be made to the realtor at the time of selling a property.

Death in the Property

Many buyers are wary of homes or properties where someone has died. They may be superstitious about a leftover spiritual residue that may be lingering on the property.

This stigma surrounding a dead person in a home has remained for centuries. Nonetheless, some break the stigma considering death to be an inevitable part of living. Homes that are at least half a century old are likely to have witnessed a death within their walls.

To purchase or not to purchase such a property is the buyer’s to decide. This is why all sellers must disclose this information to the realtor. The extent of information to be disclosed would depend largely on the local laws.

Every US state has a slightly different approach to the disclosure of death. For instance, Texas law states that all deaths related to natural causes, suicides, or any other death not directly related to the property need not be disclosed.

However, it is important to disclose deaths caused due to violent crimes, property conditions, or hazards. An example would be the drowning of a previous occupant due to a lack of a safety fence at the pool.

Even if the situation has been remedied, the seller must disclose the incident to the realtor. In some states, death by suicide or murder is stigmatized and requires disclosure. Some even impose an affirmative duty on the seller. This might happen if they suspect that the property is being haunted by the dead.

If the local law has no such requirement, it is best to err on the side of full disclosure. Buyers will come to know such things from neighbors and may back out of their purchase later. They may wonder as to what else the seller might be hiding.

Hazards

Another thing that property sellers must disclose to their real estate company is any known hazards in the home. This may cover many things, from structural issues to environmental hazards.

Those who do not disclose may suffer severe repercussions, both legal and financial. One hazard in particular that all sellers of properties built until the late 1970s must disclose is asbestos.

A naturally occurring mineral, asbestos was used in the construction of various aspects of a property. Its fibers are still found in older buildings’ roofing shingles, attics, walls, ceilings, and water pipes.

Moreover, not all asbestos was banned in the late 1970s. Its chrysotile variant had been in use till March 2024. Despite being found in nature, asbestos is extremely toxic to human health. According to TorHoerman Law, exposure may lead to lung issues like asbestosis and mesothelioma.

Simply inhaling the fibers disturbed during renovation or repairs can affect the lungs. Property sellers who fail to disclose these hazards, especially if they are aware of them, are at risk of being sued. The buyer can take them to court with the help of an asbestosis lawyer. This is also true for other hazards like toxic waste, lead paint, radon gas, a nearby landfill, and more.

Missing Items

When a buyer moves in, they expect certain items and fixtures to be present within the property. Some of these items, like an oven, are basic and must be available.

However, buyers often feel blindsided because they were unaware of missing items until the day they moved in. If not discussed in advance, it is possible that a lighting fixture or refrigerator may have gone out the door with the seller.

States like Michigan and Texas attempt to solve this problem by making it mandatory for the seller to disclose information about missing items. A long list is provided, with names of all possible fixtures the buyer could expect.

It covers water heaters, kitchen appliances, central cooling and heating systems, exhaust fans, and more. Once the seller has disclosed what’s there and what’s not, the buyer can decide whether they would like to invest in that property.

Neighborhood Nuisances

There are various neighborhood nuisances that could become a source of annoyance or disturbance for a property’s residents. Examples would include noise and odor being emitted from an external source.

Recently, the problem of noise pollution has escalated across the US. One report on the noisiest cities in America found that the most notorious ones were New York, Chicago, Newark, Boston, and San Francisco.

This means it can be difficult to find a peaceful neighborhood in these cities. States require property sellers to disclose any neighborhood nuisances that could affect the property. For instance, North Carolina wants property sellers to disclose unwanted noises, smoke, odors, and industrial or military work in the area.

In Michigan, it is important to disclose nuisances that may result from nearby farming practices, landfills, shooting ranges, or airports. These were just two examples; laws regarding neighborhood nuisances vary among US states.

Homeowners’ Association Information

A Homeowners’ Association (HOA) refers to an organization that governs and enforces rules for a community of properties and its residents. They are most commonly found across planned developments like townhouses, condominiums, and subdivisions.

If such an association governs a particular property, the seller must disclose this information to the realtor. This is crucial because HOA-governed properties generally come with a monthly fee.

Moreover, there may be certain membership rules that the buyer may have to abide by. Homebuyers may not find the rules acceptable. Equally important is informing the buyer about the HOA’s financial health so that they can make an informed purchase decision.

Let’s take an example – suppose a seller fails to disclose any due meeting notes on the property. Months later, the buyer is assessed for property improvements. This amount can sometimes be thousands of dollars. In such a scenario, the buyer can sue the seller for a lack of disclosure at the time of purchase.

Learning the nitty-gritty of selling a house is crucial. The real estate market outlook for 2025 included slow economic growth, albeit one that avoided a recession.

In 2025, a moderate recovery in real estate investment is expected. Knowing how to sell a property, including all disclosures, will ensure buyers are able to profit from the growing market.