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Disclosures in a property contract

On Behalf of | Jan 11, 2018 | Firm News, real estate transactions | 0 comments

You’re buying a new home and you must sign off on the disclosures concerning the property. Your offer has already been accepted and the earnest money has been paid.

What should you expect in those disclosures? Don’t just sign anything that is set before you. Take the time to really consider each disclosure since this is a legally-binding document.

Some things you may expect, though each property type does tend to come with its own disclosures, include the following:

  • Any improvements that the seller has made. Is that kitchen brand new or was it updated before the seller bought the property?
  • Any repairs that have been made. This can help you see what types of issues the property has already faced, like water damage from a leaking roof.
  • What flaws does the owner already know about. There may be serious issues, like a cracked foundation, that the seller isn’t going to fix. You need to know they exist so that you can fix them and factor that cost into the deal.
  • Any possible environmental hazards. Does the home have lead paint and lead pipes?

You and the seller have 72 hours to sign this paperwork once the process begins. This is also one last 72-hour period where you can read the disclosures and back out of the purchase if you’re uncomfortable with the property.

It’s very important to understand the legal process when buying or selling a property. You don’t want to regret a purchase a few years later simply because you did not slow down and consider all of the documents and legal steps you need to take.

Source: Amitree, “Michigan Homebuying and Closing Process,” accessed Jan. 11, 2018