Things you need to mention when selling a property

 It's tempting to pull the wool over buyers' eyes and withhold facts that might impact your sales price when selling a property, but is it worth the risk? Non-disclosure might result in contract termination, penalties, or a future lawsuit.

Customers have had a legal right to be pleased with the goods they purchase since the 12th century. It stems from the ancient principle of caveat emptor, which allows customers to inspect and handle items such as meat or fruit in marketplaces before deciding whether or not to purchase them.

Buying a property is certainly more difficult than buying goods at the store since more financial risks are involved. Moreover, times have changed, with the burden of proof moving slightly from the buyer to the seller.

Pre-contractual duty of disclosure:

You have a legal obligation to disclose flaws in your property title to potential buyers under common law. Title flaws might vary depending on the state, but in general, they include:

Easements:

                       A portion of land on your property title grants someone the right to use it for a specified purpose (such as a shared driveway) even though they are not the landowner.

Covenants:
                      This may have an impact on the use and value of your property.

Leases:
              When the property is subject to a contract for a fixed amount of time after settlement.

Defects in the property:

Even though many purchasers arrange for a building inspection before making an offer, you are legally required to disclose any flaws such as structural issues, moisture, insect infestation, or broken fixtures and appliances. So, ideally, resolving these issues before putting your home on the market would be beneficial to you.

Off-the-plan:

When it comes to off-the-plan contracts, the disclosure obligations grow more difficult and comprehensive, particularly if the property is part of a body corporate or strata title scheme. In this scenario, implicit statutory guarantees may be required.

 

 

An accurate sales price:

Property advertisements are not allowed to be false or misleading under the law. Underquoting your pricing is an example of this. You are underquoting when you promote or advise a potential buyer of a price that is less than your asking price. Real estate brokers often employ it to attract huge crowds to an auction, but if you mislead buyers about your sale price as a private seller, you might get in trouble.

If your sale price changes throughout your marketing campaign, this may become relevant. Your property may generate more attention than you anticipated, prompting you to raise the sales price to reflect the additional demand. Make careful to change the price of your promotional materials in this situation.

It pays to be honest:

It pays to be honest if you want to avoid future problems. You can select to address problems before selling a property in the market, or you can be upfront with purchasers and let them budget for any necessary repairs. But it's worth it to strike the appropriate balance. Some things don't have to be disclosed by law, such as your nasty neighbors. You don't want to 'over disclose and compromise your ability to sell.

If your transaction includes any uncommon elements, it's sometimes preferable to employ legal counsel to write your contract so you can relax knowing you've satisfied all of your disclosure responsibilities.