WHAT IS THE DISCLOSURE NOTICE?
The Seller’s Disclosure Notice is a legal document in a real estate transaction that gives the buyer the details of the property. This form should not be taken lightly as it is a legally binding document. The listing client has the responsibility of ensuring the form is properly filled out and is ultimately responsible for any known defects or malfunctions on the property that were not disclosed on the form.
The Seller’s Disclosure Notice was promulgated by the Texas Real Estate Commission for the use in residential real estate contracts. The One to Four Family Residential Contract has the Seller’s Disclosure Notice attached to it after it has been filled out and is then given to the party of the buyer. It is expected to be completed in full by the seller and is required to make notice of any malfunctions on the property concerning any of the appliances, features, equipment, and more. It also is for the use of disclosing all known malfunctions that have taken place on the property, such as a leak in the roof, both in the present and in the past. It is important that the client knows that no matter the date, if there was or is an event or situation on the property that must be disclosed, it must be done so on the Seller’s Disclosure Notice.
Mistakes can be made on the disclosure form and when this happens, a lawsuit can occur. The buyers can come back to the listing side of the transaction and state that the disclosure was filled out without complete disclosure by the seller. This can cause thousands of dollars in legal fees to the listing client. Unfortunately, most sellers do not know that homeowner’s insurance and umbrella policies do not cover them in this event!
This is why products and services like Sellers Shield are important to consider when selling your home. Sellers Shield provides the home seller with legal prevention and protection by guiding them through the Seller’s Disclosure Notice and offering Home Sale Legal Protection in the event of a lawsuit. The seller will be walked through the disclosure notice with several pop-up caution boxes, expandable explanation fields, a Legal Tips Sheet, and an instructional video to prevent lawsuits from occuring. If a lawsuit is to occur and the client purchased the Home Sale Legal Protection from Sellers Shield, they would be protected with legal representation in the courtroom. This gives the home seller peace of mind knowing they can walk away safe from the biggest transaction of their life.