Sellers Disclosure

Hey, good morning, everybody. I wanted to go over the seller’s disclosure notice that we sent out with our listings for our sellers to fill out and go over a few parts that I find where we have information that’s missed being filled out and wanted to make sure that you guys take the time to talk to your sellers about it while they’re filling this out. So they understand the importance of it.

As you know at the top, concerning the property, at the address of the property, it’s the whole address, including street, no street name, city, state and zip code. So please make sure that is filled out. This gets methought seller is or is not occupying the property. If and if unoccupied by seller, how long has the seller how long since the sellers occupied the property, or has the seller never occupied the property?

So that needs to be filled out. A lot of times I see people put they are occupying the property and then they’ll put the date in there that they moved in. So that would not be the correct information. But I just want to make sure you guys talk to your sellers about making sure they get this filled out, OK?

Section one. Yes. No, we’re unknown. If they don’t know, they need to market and know or they need to know or they need to work. Yes. So make sure that every blank is filled out.

Guys, this is so important. So here is where I typically have to send these back and ask for them to be fully completed on these items. Yes. No are unknown. You have these and then it asks you, are they electric or gas and the number of units. So we need all of this information out.

This gives the buyers information. It also helps make sure the sellers are giving the information about the property. It helps everybody to be able to have this information even before the listing. If I’m missing something, if the seller’s disclosures filled out properly, I can look at it and get the information without having to ask somebody.

So please, let’s make sure that they are filling these out garage door openers, number of units and number of remotes, whatever they put here for their number of remotes, those remotes must convey with the sale of the property. Same with security system owned or leased from. And then the information will go there. Who had leased from I know we now have the lease addendum that goes with the property.

If there’s something like a seller, a security system or something that’s leased. So we do need to make sure that’s as close water heater, electric, gas, how many units. But same with AC, how many units. We need to know all of those things. But yes, every. Thing needs to be filled out with yes, no unknown.

On page two, this top section right here gets missed a lot just because it scooted towards the top. Do they have lawn sprinkler systems or a septic or onsite sewer facility? And again, please make sure at the top of every single page that the address is on their. And then this section, I find people skip a whole bunch of these questions, how’s the water provided? Who who provides their water?

Was the property built before 78? What type of roof do they have and what is the age? Is there an overlay on it? Are you the seller aware of any items listed in Section one? They’re not in working condition. Please explain. So again, making sure that everything is completely filled out helps all parties together. Section two. Yes or no? If it’s marked, just fill it out.

Section three? Yes or no? If it’s marked, yes, you fill out Y on the next page. Section four, if there is something that was not listed on the above pages that the seller knows is in need of repair, they need to mark yes. And fill it out here, if not marked, no. And move on. Section five is about flood insurance and information like that. Here’s the explanation for the purposes of this, they need to mark yes or no on each of these. If they’ve marked yes, they need to explain why. Page four again address at the top and make sure they answer section six.

Section seven, yes or no, section eight. Please make sure if there’s Ntreis, they fill out all of the information here. This is probably the easiest place to get the information. As a homeowner, they should know what management company they pay their their eternities to. Are they mandatory or are they voluntary? Is it annually biannually monthly? What what is it then again?

Mark, yes or no? The other one I wanted to really point out on here, any lawsuits or other legal proceedings directly or indirectly affecting the property includes was not limited to divorce, foreclosure, heirship, bankruptcy and taxes. Ok, guys. So if there is a couple that is in the midst of getting divorced, but only one of them is on tax rolls or records as owner of the house, then this still would need to be marked. Yes, unless they have a final signed, sealed divorce decree that the judges signed off on. And everybody knows where the proceeds are going.

This needs to be marked. Yes, we’re coming off of the year of Covid, where a lot of people had. Then forbearance some people may be in to foreclosures at this point, they may be filing bankruptcy, there may be so many different examples. So we need to make sure that, you know, people see any death on the property except for those deaths caused by natural causes, suicide or an accident unrelated to the condition of the property.

So this doesn’t come up very often. But one example I can give is when I probably six or seven years after being in the business, I worked for a different company. And we had a seller that had to actually mark yes to this question, because there had been a person jogging outside of their home and somebody drove by and shot this person, and they unfortunately died in their front yard.

So that’s on the property. It had to be disclosed. So it was not a fun thing, but it has to be done. So let’s make sure we are giving all the information we can with everything. So, again, have them read these. Mark, yes or no? And if there’s any answer yes, then that’s where their explanation goes. And Section nine, this gets skipped on the seller. Either has or has not attached a survey to the property.

Do they have their property survey? And on a side note, if they do, please make sure they fill out the 247 and have it notarized to go with it within the last four years. Have you the seller received any inspection reports from a person who regularly provides inspections and who are either licenses, inspectors or otherwise permitted by law to perform inspections? Yes or no? This typically is if somebody bought the home within the last four years and they had an inspection done, if they don’t have a copy of it, they still need to write it.

The type of inspection, who did the inspection, and they need to try to contact that inspector and get a copy that way. We have it on file and we can provide it to whoever needs it if they ask for it. Do the sellers have any tax exemptions? They’re currently claiming they need to mark this. I do. If they’re an investor, they typically will not have any. Section 12.

Have you ever filed a claim for damage other than flood damage to the property with any insurance provider? Yes or no? If they filed a claim for their roof and had their roof replaced? The answer would be yes on this because it’s filing a claim. Have you the seller ever received proceeds for a claim for damage to the properties?

Example, an insurance claim or settlement award and a legal proceedings and not use the proceeds to make the repair for which the claim was made? Yes or no? If yes, explain. So we’ve seen this come up actually in the last couple of years, and we’ve had buyers where the seller had filed a claim for the roof and then never fix the roof. And so they, yes, took money and didn’t make the repair.

What ended up happening is they have to repair the roof before closing, but that it would be something that needs to be disclosed.

Section 14, does the property have working smoke detectors installed in accordance with the smoke detector requirements of Chapter seven, 66 of the Health and Safety Code? Guys, here’s that information right here to help them know what they need to check there. And then on the last page. Please have them provide their current utility providers, they know who they pay their bills to.

So it makes it very easy for us to give that information or for the buyers to have it for when they purchase the property, then we don’t have to stop and ask and the information’s there. The other thing I just want to note is the seller initials, every single page, one through six on the seller’s disclosure, and then they also sign in date on page five. So I’m hoping that you guys will go through these with your seller. You don’t tell them what to Mark. You just tell them they have to mark everything.

They have to answer everything. Yes. No unknown, yes or no. And then they need to elaborate with what the reasoning is. If the answer is yes, they also again, this is the biggest place people do not fill out this additional information. This is so important.

So please make sure that all of this is filled out before it’s sent to me, because if it’s not, I will be sending it back to you to be filled out before we put it. Into MLS. So if you guys have any questions, I’m very happy to help and look forward to talking to everybody.

Episode Links

Mike Acquisto , Shana Acquisto , TNT 

Episode Recorded Live on YouTube 9.3.21

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