Seller’s Disclosures – Honesty is the Best Policy

When selling your home, one of the first forms you have to fill out, which is part of the seller’s agreement, is the Seller’s Property Disclosure form. This form is a critical document that outlines the homes current and past conditions. This form is legally binding and must be answered honestly, which is why most homeowners have a hard time filling it out. In the real estate transaction, this is where your agent should stress the importance of ethics and the consequences of falsifying this document. The best course of action when filling out a disclosure form is to go line by line answering everything completely and to the best of your ability or marking items that you are unsure of accordingly. Not disclosing issues with your home’s condition could not only result in a loss of a deal, but also a law suit. For this reason being upfront and honest is always the best policy.What kind of issues must be disclosed when selling your home? The exact information is dependent on which state you are selling your home in, but for our purposes the information below pertains to the State of Colorado’s Residential Seller’s Property Disclosure form. 

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Section I of the Colorado’s Residential Seller’s Property Disclosure form asks if any of the following conditions currently exist or have ever existed.

• Structural problems
• Moisture and/or water problems
• Damage due to termites, other insects, birds, animals or rodents
• Damage due to hail, wind, fire or flood
• Cracks, heaving or settling problems
• Exterior wall or window problems
• Exterior Artificial Stucco (EIFS)
• Any additions or alterations made
• Building code, city or county violations

The next part of this section is typically dedicated to the roof and concerns issues that currently or have previously existed, such as leaks and damage. It also asks for the age of the roof and if it is under any warranties. The rest of section I covers whether or not the remaining features of your home are in good working condition and is fairly simple. Section II has more to do with the legal aspects of the home, like zoning, hazardous materials, liens, lawsuits, insurance claims, and drainage and sewage services. 

If you have any questions relating to the sale of your home, it is best to consult with your licensed Realtor.