Under Iowa law, those who are selling real estate must make certain disclosures about the property to potential buyers. Failing to make these disclosures can lead to litigation and legal liability. It is vital the sellers do not forget this critical step when selling their home.
The Seller Disclosure Form
It is a good practice for sellers to fill out a seller disclosure form at the same time as they list the property for sale. The disclosure information should be provided to a potential buyer before the buyer makes a written proposal to purchase the real estate. If you do not deliver these disclosures before the buyer makes an offer, a potential buyer could withdraw their offer without any legal consequences.
The seller disclosure form indicates whether you have had any problems with various aspects of your home while you lived there. Even if you do not know precise information about the property, sellers are obligated to make reasonable efforts to obtain the information about the house. Sellers are also required to provide this information in good faith and make amendments if necessary and appropriate.
You should keep in mind that sellers are required to provide the required disclosure information to the best of their ability even if they did not live in the home prior to selling it. Nonetheless, you do have the option to mark “unknown,” regarding any required disclosures.
Required Disclosures
The required disclosures include information regarding the condition and characteristics of the property and any structures located on the property. Structural defects are of particular importance in these disclosures. Other examples of required information include:
- Water problems related to the basement or foundation
- Issues related to the roof, including past repairs
- Problems with wells, pumps, septic tanks, drain fields, or sewers
- Malfunctions connected to the heating and cooling systems
- Pest infestations
- Radon, lead, or asbestos presence on the property
- Easements and restrictive covenants
Legal Liability and Required Disclosures
Failing to make the proper disclosures can lead to legal liability. You may be required to pay any actual damages that result from the failure to disclose. Those damages usually consist of whatever costs are associated with making a needed repair and any other damage that the problem may have caused.
For example, if you fail to disclose that you occasionally get water in the basement, a buyer could sue you for damages associated with the leak or foundation issues. If a leak damaged their carpet and furniture, they might be able to recover costs related to replacing the furniture and fixing the carpet in addition to the expenses associated with the repair of the foundation.
Lawsuits are expensive. It is better to be thorough regarding your disclosures instead of facing legal action down the road. If you are selling your home and you want to be sure that you are meeting your legal obligations regarding disclosures, call Danilson Law for more information about what you should disclose. Danilson Law can also help if you are a buyer struggling to get information from a seller. Call 515 512 5500 today!
