You are legally obligated to follow federal, state, and local disclosure laws for real estate transactions, reporting any information about defects with the structure or other pertinent facts you are aware of that could ultimately affect the property’s value. In addition, you should discuss with an experienced professional even the most minor of issues that could infringe upon the use, value, or enjoyment of the property in its entirety. Disclosure laws are one reason you should keep careful records of all work done. You should also maintain possession of the disclosure form after the closing for three years to protect yourself.
In addition to structural or other issues with the home itself, another way to fail to disclose would be in misrepresenting the property. For example, you schedule a showing appointment for potential out-of-town buyers to stop by the property, intending to hide the noise factor of a nearby airport or the time of day the smells from a nearby factory are pouring in the windows, and you don’t mention anything. Read on to discover the consequences of not disclosing problems with your Fort Myers house before selling before you find yourself learning them the hard way.
Legal Action
One of the consequences of not disclosing problems with your Fort Myers house before selling is facing legal action. Failing to disclose material facts about the property when you sell your home should be avoided because the buyers are highly likely to take legal recourse against what is considered real estate fraud. If the problems with your home have you concerned, a direct sale of the property as-is may be your solution. Like those at Core Real Estate Properties, a direct buyer will detail the amount your home is likely to garner on the traditional MLS vs. every figure used to calculate an offer for a direct sale. At Core Real Estate Properties, our goal is to help you earn the highest possible profit on the deal, even if it isn’t with us.
Legal Judgement and Court Costs
Failing to disclose known problems in your house before selling can lead to significant financial repercussions. Here’s why:
- Lawsuits: Buyers who discover undisclosed issues after purchasing your house can sue you for financial compensation. This could cover the cost of repairs for the undisclosed problems, as well as any decline in the property’s value due to those problems. In some cases, they may even be able to sue for damages if the undisclosed issue caused harm to them or their property. These lawsuits can be lengthy and expensive, and even if you win, legal fees can eat significantly into any profits from the sale.
- Financial penalties: Depending on your location and the severity of the undisclosed issue, there may also be government fines or penalties associated with failing to make proper disclosures. On top of that, if the buyer decides to back out of the sale due to the undisclosed problems, you could lose out on earnest money they placed in escrow.
Paying for Repairs or Damages Suffered
Trying to cut corners by neglecting to disclose problems with your house in Fort Myers can turn into a major financial headache down the road. Let’s say you did some electrical work yourself to save on hiring a licensed electrician, but the work wasn’t permitted and up to code. If the new homeowners discover this during renovations or after an electrical issue arises, they can sue you for the cost of getting everything ripped out and redone by a professional, including obtaining the necessary permits. This can be significantly more expensive than the initial, unpermitted work you did. The same principle applies to hidden health hazards. If there’s a mold problem you knew about but didn’t disclose, and the new residents develop respiratory problems that require medical attention, you could be held liable for their medical bills. In short, failing to disclose problems is a gamble that can cost you far more than being upfront about the condition of your house. Remember, full disclosure fosters trust in the real estate transaction and protects you from unexpected financial burdens.
The experienced direct buyers at Core Real Estate Properties can help you with what you should and should not disclose to help you avoid the consequences of not disclosing problems with your Fort Myers house before selling. At Core Real Estate Properties, we understand the importance of communication; our direct buyers stop and listen to your questions or concerns, with no pressure or obligation to work with Core Real Estate Properties. Why not save money and time by selling your house directly to Core Real Estate Properties and avoid the prep work, repairs, showings, and paying high commissions or other fees at closing. When you make a direct sale to Core Real Estate Properties, we want you to agree that the cash offer for your house is fair because we want you to feel good about working with us long after the sale. Contact Core Real Estate Properties today at 239-360-3176 to learn more.