BUYER TIP #7

By
Managing Real Estate Broker with MULAMONT REALTY, LLC

Review the Disclosures

Buying a HomeBefore you write an offer on a house be sure to obtain, read and understand the disclosures related to the property.  In Michigan there are two primary disclosures you should obtain:

  • Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards.
  • Seller's Disclosure Statement.

Both forms are useful in providing information on the condition of and the likelihood of hazards in the property as disclosed by the seller(s).  The purpose of the disclosures are:

Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards.  Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning.

Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women.

The seller of any interest in residential real property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller's possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase. (Source: US EPA)

In a nutshell the statement is saying, if the home you are thinking of buying was built before 1978 there might be lead paint in it.   It discloses what exposure to the lead might do to you and yours.  The seller(s) may or may not know if there is any lead present-- we'll tell you if we know.  If you really want to know for sure; get it tested at your own expense.  But, you can still buy the house if you want -- we just want you to know your options.  The disclosure is not required for homes built after 1978.

Seller's Disclosure Statement. This statement is a disclosure of the condition of the property in compliance with the Seller Disclosure Act. This statement is a disclosure of the condition and information concerning the property, known by the Seller. Unless otherwise advised, the Seller does not possess any expertise in construction, architecture, engineering or any other specific area related to the construction or condition of the improvements on the property or the land.

Also,unless otherwise advised, the Seller has not conducted any inspection of generally inaccessible areas such as the foundation or roof. This statement is not a warranty of any kind by the Seller or by any Agent representing the Seller in this transaction, and is not a substitute for any inspections or warranties the Buyer may wish to obtain. (Source: Michigan Legislature)

In a nutshell the statement says here's all we know about the home you are buying.  Remember now it is to the best of my recollection but I'm not a contractor either.  I haven't lied about the condition of the house either physically or legally.  This is a disclosure only and not a part of any contract.  However, in Michigan if the buyer doesn't have the opportunity to review the disclosure the buyer can cancel the purchase contract.

Disclosures have a lot of information to help in your decision to buy a house.  Get them, read them and understand what they mean.

___________________________________________________________________________________________________

If you need help Selling your home or you are looking for a home to Buy, visit my website for information to assist you.  

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Ambassador
672,151
Karen Crowson
Alain Pinel Realtors, Pleasanton, CA - Livermore, CA
Livermore Wine Country Homes

Disclosures give buyers more confidence in the seller's they're buying from.  When I see these come from sellers who've lived in a house for 20 years, but have nothing to convey about the property, my buyers get skittish.  Of course they do inspections, but it does allow a bit of doubt in their mind about what potential problems could be lurking.

October 08, 2010 10:05 AM #1
Rainer
27,393
David L. Montgomery
MULAMONT REALTY, LLC - Pontiac, MI
David L. Montgomery

Thanks for the comment. I know when I list a home and I give the sellers the sellers' disclosure the first thing they ask is "do I have to...?"  In 20 years they've grown comfortable with the low water pressure and the trinkle from the basement wall when it rains.  They just don't stack anything near it :-)

October 08, 2010 10:13 AM #2
Rainmaker
566,690
Chris Smith
Re/Max Chay Realty Inc., Brokerage - New Tecumseth, ON
South Simcoe, Caledon, King, Orangeville Real Esta

David, they say the devil is in the details... pay attention to those details...

October 20, 2010 11:18 PM #3
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David L. Montgomery

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