Disclosure: more is better

Sellers and brokers must disclose to prospective buyers any known material defects in a property. A broker’s duty to disclose known defects is the same without regard to whom the broker represents in a transaction.

The seller’s disclosure-notice statute requires a seller to complete a seller’s disclosure notice and deliver it to the buyer on or before the effective date of a contract. If the seller does not deliver the notice by then, the buyer may terminate the contract for any reason within seven days after the buyer receives the notice.

Avis Wukasch, team leader for Keller Williams Realty in Williamson County and the chairman of the TAR Risk Reduction Committee in 2001, thinks it’s wise for agents and brokers to go beyond those legal requirements. "I believe we should be telling the seller to always disclose everything you know, potentially know, or think you might know about this property," she says. If Wukasch sees something that concerns her, she specifically asks the seller about whatever it is. If the condition still concerns her after the explanation and the seller is not willing to disclose it, Wukasch will not take the listing. She stresses that some items worthy of disclosure don’t specify whether that item is a problem–just that it’s something the sellers noticed. "It’s always better for buyers to know," she says. "Then, the argument that they didn’t know about it goes away."

Rudy Robinson, who as president of Austin Valuation Consultants has seen his share of problem properties, believes sellers are better off providing the disclosure notice up front rather than at the time of contract. He also recommends to not let the form limit what you disclose. "If it doesn’t have all the boxes and information on it you need, add to it," he says.

Buyers & sellers, visit www.texasrealestate.com.
REALTORS®, visit www.texasrealtors.com.