In Pennsylvania, home sellers are required to disclose any
material defects to prospective buyers before an agreement of sale is signed, though
there are exemptions for some types of sales. Two of the more common exemptions
are transfers between co-owners as a result of divorce and sales to settle an
estate.
Sellers in this area generally fill out the standard PA
Seller’s Property Disclosure Statement. Having a standardized form helps buyers
compare properties and assess a home’s worth. Over the years, the form has become more extensive and is now ten pages,
covering many aspects of a home’s condition.
What Is On the Seller’s Disclosure?
If you’re in the market to buy a home, the seller’s disclosure
is where you’ll find out what the sellers know about the type of water and
sewer the home has (public or private), the type of heating fuel, the age of
the roof and HVAC system, whether the home has central air, and whether there
are any structural issues. It’s also where to check whether the sellers have
knowledge of any environmental issues like lead paint, radon, and mold, as well
as financial, legal, or title issues that may affect the sale.
The disclosure asks sellers to list any additions or other
alterations to the property made during their ownership. Examples include
finishing a basement, adding a room, installing a pool or fence, and making
structural changes. They should note the date of the addition or alternation,
as well as whether they obtained the required approvals or permits.
Why Buyers Should Review the Disclosure Carefully
When planning to make an offer on a home, a close review of
the disclosure is essential to determining how much you think the home is
worth. If the sellers left any questions on their disclosure unanswered, ask
that they complete it before you make an offer. If a disclosure is not
available because the sale is exempt from the disclosure requirement, consider
the risk of unexpected problems and potentially expensive future repairs before
you decide on your offer price.
Some buyers want to see the seller’s disclosure even before
deciding whether to tour a home, especially if they had a previous sale fall
through because of repair issues. Many are particularly interested in the age
of the roof and HVAC systems, basement water problems, and stucco issues.
The Seller’s Disclosure is Not a Substitute for
Inspections
Keep in mind that a seller’s disclosure is not a substitute
for a home inspection or any other inspections that would typically be done. Inspections
are an important part of the purchasing process for several reasons. The most
obvious is that inspections may uncover problems the sellers are unaware of. They
may also uncover issues the sellers did not disclose because they mistakenly thought
they were not significant enough to note. Finally, inspections are important
because unscrupulous sellers may choose not to disclose problems that could
deter buyers or cause them to offer a lower price.
The Benefits to Sellers
It’s easy to see why the seller’s disclosure is important to
buyers, but it can also benefit sellers. Buyers typically sign the seller’s disclosure
and submit it with their offer to acknowledge receipt. This helps prevent
misunderstandings during the transaction and reduces the likelihood buyers will
later claim they purchased the home without having pertinent information from
the sellers. It’s also a place for sellers to highlight improvements to their
home, especially big-ticket items such as a new heater, air conditioning system,
or roof, which can help the sellers justify their price.
Read more of Annette’s
real estate articles for the latest real estate advice.
If you’re planning to buy or sell a
home, contact Annette Nelson at (610) 247-7892 or annette@preferredhomes.com
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