Did You Receive a Complete Seller’s Disclosure?

How do you judge the validity of the Seller’s Disclosure you receive when buying property?  Here are some questions to consider when reviewing the disclosure:

1.  Is every question answered? 
All too often, sellers fail to answer all 90 questions.  Consider these possibilities:

• Questions may have been skipped as an honest mistake.
• Questions may have been skipped to avoid providing information.
• Questions may have been skipped because they are confusing and the owner truly doesn’t know how to answer.  This is a real possibility since many of the questions were written by attorneys and are not easily understood.

2.  Are there “yes” answers? 
Answering “yes” requires the owner to provide additional information on page 4 of the disclosure.  Did they provide the required amplifying information?  Was that information clear and complete, or did it avoid answering the question directly?

Example:  Question 69.  Has the roof been repaired or replaced?

Poor answer:  Yes, repaired in 2009.

Better answer:  There was a small leak in 2009.  A licensed contractor, Mr. XX, removed defective shingles, repaired the underlying roof and installed new shingles.  A 3 ft. by 2 ft. area in the attic was made slightly wet by the leak and was dried and treated with an anti-bacterial/anti-fungal solution to prevent growth.  Copies of the repair receipts and warranty are attached to this disclosure.

3.  Does the disclosure lack “yes” answers? 
If so, you should ask yourself if the owners took their disclosure responsibilities seriously.

Is it possible that no problems have been experienced with any of the appliances or plumbing?  Maybe, if the appliances are just a few years old.  But, who installed the new appliances?  If the current owner installed them, this should be noted on the disclosure.

4.  Are many of the questions answered “not to my knowledge”? 
Again, if so, ask yourself if the owners took their disclosure responsibilities seriously.

Example:  Question 58.  Is this property exposed to other types of recurring excessive noise (e.g. night club, school, coqui frogs, etc.)?  In my opinion, “not to my knowledge” is not a sufficient answer.  Excessive noise is either present or it’s not.  The owner should know, unless they’ve never visited the property.

5.  What do you do if you receive an incomplete Seller’s Disclosure? 
You may submit more probing questions to the seller that deal with what you perceive as problem areas.  You may or may not receive better answers, but it’s worth trying.  If time still remains in your home inspection period, you may wish to take another look at certain areas that concern you.