3 Must-Disclose Items for Home Sellers

By Greg Smith

BoulderHomeSource represents the region’s finest properties with exceptional skill, using the most innovative technologies currently available. BoulderHomeSource offers ultimate privacy, security, speed, and efficiency. The team’s years of full-time experience have given them a clear understanding of the mindset of home buyers and sellers and a thorough understanding of the regional marketplace.

When making an offer on a house, a property disclosure is one of the first things buyers get from the seller. This is also referred to as a property disclosure statement, a real estate disclosure form, or a home disclosure. The specifics vary by state, but most states, including Colorado, require some type of seller disclosure. The goal is to add transparency to the transaction.

In this disclosure, a seller provides written information about known things that could impact the property’s value. While there are many different things a seller must disclose, I’m going to highlight three of the most forgotten (and impactful) items:

1. HOA information. If the home is located within a homeowners association, you should disclose that fact. Associations generally impose monthly fees on homeowners, and they can set rules on their membership that a prospective buyer might or might not find acceptable. You also need to know about the HOA’s financial health and provide this information to the buyer so they can make an informed purchasing decision.

2. Repairs. If your home has major structural issues, you must disclose them to a potential buyer. In addition to repairs that need to be made, you must also disclose repairs you have completed. Buyers need to know the home’s repair history so they can have their home inspectors pay extra attention to problem areas. You may also want to disclose electrical or plumbing repairs and any other problems you would want to know about if you were going to buy the home.

3. Material facts about the home. One of the most common issues we encounter in real estate transactions is the failure to disclose material facts about a property. This oversight can lead to serious consequences, including civil cases filed against the real estate agent, the seller, or both, by disgruntled buyers who discover undisclosed information after moving into the house. If a buyer requests certain repairs based on an inspection or vendors recommend additional work during visits to the property, sellers are obligated to disclose these details to the buyer. Failing to do so can lead to legal consequences and financial liability.

The key thing to remember about disclosures is that when in doubt, disclose. Failing to disclose something you were aware of beforehand could lead to a messy legal situation.

If you have further questions about what you need to disclose when selling your home or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.