Real Estate Sellers’ Disclosure Forms
Before buying a residential real estate property, buyers must go through a rigorous screening process to ensure that they are truly fit to buy the property they want. If you are planning on financing your house with a home mortgage loan, then you must submit documents to the loan officer to determine the amount for which you pre-qualify; this gives you an idea about the price range of properties on which you can reasonably afford to make an offer. Once you make an offer on a house, you must submit even more thorough documentation in order to get a mortgage for the property you are trying to buy. If you are fortunate enough to be able to pay for the property in cash instead of taking out a mortgage, you must go to great lengths to show that you got the money through legitimate means, such as the proceeds from the sale of another house you legally own, rather than through money laundering, since the federal government finally figured out that cash purchases of real estate properties are a favorite tactic of money launderers. What about the sellers, the ones who derive the fastest financial gain from the real estate transaction? Where is their accountability? It depends on where you are; sometimes a short drive across the bridge makes all the difference. For help accurately determining the condition of the real estate property you are planning to buy, contact a Washington, D.C. real estate lawyer.
Is There a Lemon Law for Real Estate Properties?
In most cases, the principle of caveat emptor, which is a Latin phrase meaning, “let the buyer beware,” rules the day in legal disputes over the condition of property that has recently changed hands. In other words, it is the buyer’s responsibility to inspect the item thoroughly before deciding to buy it. You can sue someone for fraud if they outright lie about the item they are selling to you. What if the seller simply doesn’t tell you about problems with the item and expects you to be diligent enough to find out about them?
With some of the most expensive items that consumers tend to buy, consumer protection laws provide remedies for buyers if sellers do not disclose potentially costly defects about the item before the buyer buys it. For example, most states have “lemon laws” requiring sellers to provide thorough disclosures about the history and condition of motor vehicles. Federal law requires few disclosures from sellers about real estate properties; these laws protect sellers at least as much as they protect buyers. In Washington, D.C., however, the seller must provide a disclosure form to the buyer before the parties sign the contract, and it must provide accurate and thorough information about the property’s walls, windows, HVAC system, and appliances, among other features of the property. The rules are less strict regarding estate sales and foreclosure sales, because the seller is not expected to know the condition of the property in so much detail.
Contact Tobin O’Connor Ewing About Real Estate Disclosures
A Washington, D.C. small business attorney can help you ask the right questions after receiving the seller’s real estate disclosure form. Contact Tobin, O’Connor, and Ewing in Washington, D.C. or call 202-362-5900.
Source:
Section 17-2708. REAL PROPERTY SELLER’S DISCLOSURE STATEMENT, Chapter 17-27. REAL ESTATE PRACTICE AND HEARINGS, Title 17. BUSINESS, OCCUPATIONS, AND PROFESSIONALS, D.C. Municipal Regulations (elaws.us)
