Disclose, Disclose, Disclose

Owner Disclosures….Do our Sellers really understand what this means?



It use to be that in real estate, three key words were, “location, location, and location”. Still true. But, in the past few years three other words have become more and more important, and in California these words are involved in every real estate transaction. Those three words are “disclosure, disclosure, and disclosure”. Often, when talking with a seller about a potential listing, we, as agents, are tempted to “lay it on the line”, for if the seller doesn’t understand the importance of full disclosure, they could be in for some serious problems. Recently I ran across an article from another REALTOR addressed to sellers, and it kind of “says it all”. I’m including this in my training, and encourage all agents to do the same.

“Dear seller. You’re in a hurry to sell and you list your property with a REALTOR to sell “as is”. You have decided not to make any repairs. Besides, there’s a roof leak that will probably require a new roof which you are not willing to pay for. Is this really in your best interest?

Most REALTORS will ask an owner to complete a Sellers Property Disclosure Form (TDS in California). This form is completed by the owner and covers the condition of the property. Even if a property is listed to sell “as is” an owner may incur liability if he knew about a latent or hidden defect and failed to disclose it. The roof leak would definetly need to be disclosed! The disclosure doesn’t obligate the owner to pay for repairs; it just alerts the seller to potential problems and possible future expenses. Buyers should always ask for a Property Disclosure Form (TDS) prior to presenting an offer to a seller. That step confirms that everyone is proceeding with the same understanding of the property.

Disclose, Disclose, Disclose is the best way to avoid claims of misunderstanding. Any representation or guarantee about the condition of the property should always be in writing and part of the contract, relying on a verbal discussion and someone else’s memory can prove dangerous. Your REALTOR is knowledgeable in how to proceed with all phases of the real estate transaction. If there is any question about the condition of the property, he/she will encourage the buyer to arrange for a professional inspection and consider purchasing a home warranty or service contract.

Disclosure may seem automatic and an unnecessary topic of conversation, however the number of people getting sure over perceived misrepresentations increases every year, The legal process is long, involved and costly. To avoid it, remember those all important three words, disclose, disclose, and disclose.”. How can we say it better?