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Property Condition Disclosure
Property Condition Disclosure
A new real estate law now in affect has brought major changes that remove the option to give the buyer a $500 credit at closing instead of filling out the property disclosure form. The law requires that sellers answer questions concerning the property and new questions added on potential flood risk, a history of flooding and flood insurance. In the past, attorneys for sellers advised their clients to give the $500 credit instead of completing the property disclosure form because many of the questions are vague and could spell legal trouble. The amended law removes this option. Sellers are required to complete the form on their own and answer each question to the best of their ability and knowledge of the home. This form must be provided to the buyer prior to contract signing. A seller who willfully fails to provide a PCDS to the buyer is liable for actual damages suffered by the buyer. In addition, sellers have no obligation to conduct any type of inspection of the property in order to answer the questions. If the seller does not know the answer, they can simply check "unknown."
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