What is an Owner obligated to disclose when selling a home? (Austin: sale, real estate)

[CptnRn]

What is an Owner obligated to disclose when selling a home?

I have been seeing more and more discussion about this lately, and its been awhile since I bought a home. It seems that expectations are higher these days then what I'm accustomed to, growing up in the "buyer beware" days.

So, I'm wondering, what is an Owner obligated to disclose when selling a home these days?

[centralaustinite]

Have you looked at a disclosure sheet? They are fairly detailed. I also take the address and go look and see if permits were issued for any repairs or remodels and how that squares with the disclosure.

[riaelise]

Seller disclosure was, I believe, law in New York. So I had to disclose anything like liens, issues both superficial and structural, stuff like that. I would voluntarily disclose such things because I'd hate to be in the buyer's shoes and discover big problems.

[EllenArlingtonPark]

There are two seller disclosure forms, one is the TREC form for use by FSBO's or anyone else. The other is used by the Texas Association of Realtors.

You can go to the Texas Real Estate Commission website and get a copy of it at
TREC - Home Page

It is required for the sale of the home for the seller to fill out this form, and sign it.
click the forms tab.

[CptnRn]

Originally Posted by EllenArlingtonPark

There are two seller disclosure forms, one is the TREC form for use by FSBO's or anyone else. The other is used by the Texas Association of Realtors.

You can go to the Texas Real Estate Commission website and get a copy of it at
TREC - Home Page

It is required for the sale of the home for the seller to fill out this form, and sign it.
click the forms tab.

Thanks, I found the law describing it and the disclosure form here. http://www.trec.state.tx.us/pdf/contracts/OP-H.pdf

It is far more comprehensive then I realized, I wonder if it has changed since we bought our house 6-7 years ago.

[austin-steve]

Originally Posted by EllenArlingtonPark

There are two seller disclosure forms, one is the TREC form for use by FSBO's or anyone else. The other is used by the Texas Association of Realtors.

There is also a third form promulgated by the Austin Board of Realtors.
The TREC form is the basics, as required by law. The TAR form, used by most Realtors in Texas, is more detailed. The Austin Board of Realtors (ABOR) form goes into even more further detail and is the longest and most detailed available in Texas, that I know of.

None of the Texas disclosures are as detailed as some in other states. I picked up a flyer from a property in Missouri once on vacation a couple years ago and it had the disclosure attached, and it was really long and went into detail about all the components of the home, such as the age of the HVAC, and specifics about recent repairs, etc.

I have mixed feelings about disclosures. As a buyer, I'd appreciate seeing the detail about everything, but as a seller, each additional item represents another potential lawsuit. Many owners simply don't remember, or don't even know the age of their equipment such as the Condensing unit, water heater, AC furnace coil, etc. The more detail asked, the greater the liklihood a seller might write down the wrong info, and thus be liable.

Ultimately, it's up to a buyer to NOT rely on the disclosure and hire a good inspector.

I'm involved in a transaction at present where both 17 year old HVAC systems need replacing, and the roof has at least 5 leaks, one of which has a bucket in the attic catching drips. Sellers made no mention of this in the disclosure. NEVER trust the disclosure, ALWAYS hire a really good, experienced inspector.

Steve

[mickey65]

I know in California you have to disclose if there was a death on the property, since some cultures are superstitious about that sort of thing.

I knew a friend who was murdered in her house - along with two other people (it was a double murder and a suicide), and a few years before, someone had committed suicide in her driveway, and on top of the fact the house was haunted to begin with!

I'm wondering who bought that house.

[shankaupas]

Originally Posted by mickey65

I know in California you have to disclose if there was a death on the property, since some cultures are superstitious about that sort of thing.

I knew a friend who was murdered in her house - along with two other people (it was a double murder and a suicide), and a few years before, someone had committed suicide in her driveway, and on top of the fact the house was haunted to begin with!

I'm wondering who bought that house.

Stephen King

[EllenArlingtonPark]

Originally Posted by CptnRn

Thanks, I found the law describing it and the disclosure form here. http://www.trec.state.tx.us/pdf/contracts/OP-H.pdf

It is far more comprehensive then I realized, I wonder if it has changed since we bought our house 6-7 years ago.

They change these forms and all the others very often, usually about every two years.

I would suggest you visit the real estate forum, it is full of some useful information.

[IC_deLight]

The items required to be disclosed and the types of transactions in which disclosure is required are set forth by statute (realizing that these trade groups also lobby for the language of the statute). The language in the statutes sets forth the minimum contents for a Seller Disclosure. Material added by other groups (such as disclaimers for real estate agents, etc.) are not designed for the benefit of the seller or the buyer. TAR and ABOR are trade groups that operate in the interests of their members, not necessarily in the interests of the owner or prospective purchaser of real estate. Real estate agents sometimes promulgate their own forms as well. The seller only needs to comply with the statutory requirements.

To ensure compliance with the seller disclosure laws, please refer to Texas Property Code §5.001, et seq. These statutes generally identify the items that must be disclosed (and some items for which there is no obligation to disclose), the types of transactions that disclosure is required for, and remedies in the event the seller fails to disclose.

Here are a few of the statutes:

§5.008 sets forth the SELLER'S DISCLOSURE OF PROPERTY CONDITION
§5.011 sets forth the SELLER'S DISCLOSURE REGARDING POTENTIAL ANNEXATION
§5.012 sets forth the mandatory NOTICE OF OBLIGATIONS RELATED TO MEMBERSHIP IN PROPERTY OWNERS' ASSOCIATION
§5.013 SELLER'S DISCLOSURE OF LOCATION OF CONDITIONS UNDER SURFACE OF UNIMPROVED REAL PROPERTY
§5.014 NOTICE OF OBLIGATIONS RELATED TO PUBLIC IMPROVEMENT DISTRICT

As prospective purchaser, you can also request information that the seller is not required to provide as part of the initial seller disclosure. For example, you can ask for a "resale certificate" if the property is subject to membership in a mandatory HOA. [Property Code §207] The mechanics of this are designed to create a boondoggle for the HOA management companies, so keep in mind that the seller's remedies are somewhat limited if the managing agent of the HOA refuses to timely provide a resale certificate. Whether you are a seller or a buyer, do not accept unsigned resale certificates from the managing agents as a valid certificate. The reason management companies don't sign them is to avoid being held to the estoppel effects of the certificate. They certainly won't hesitate to collect money for worthless certificates though.

For the most part, §5.008 and §5.012 are the mandatory disclosures most city-dwellers will be dealing with. However, the list above is not all-inclusive and you should refer to the Property Code to see if other disclosures might be necessitated given the type of property and nature of transaction contemplated.

Texas Property Code: Conveyances.