The best way to ensure no repercussions of liability from lack of disclosure is to disclose any known issues. However, just because you’ve disclosed a problem doesn’t mean the problem is yours. The buyer may negotiate potential costs of renovations into the deal. For example, if the cost to get the pipes fixed is appraised at $5,000, subtract the amount from the sales price. The buyer can use the savings to get the work done themselves. Some eager buyers may even look the other way on a minor issue that will not affect their quality of living, in order to get a deal done as soon as possible. You and the prospective buyer will have a healthier and more productive negotiation when all the cards are laid out on the table.
HOW TO DISCLOSE
Once you’ve figured all that must be disclosed to your prospective home buyer, you need to figure out the right way to divulge the information. There are specific forms in many places that use prompting questions and fill-ins so that it’s easy to complete and understand the reports of problems with your home. One such form is the SPIS, or Seller Property Information Statement. This is considered a controversial form in Canadian real estate, because it asks sellers to provide answers to questions well beyond the scope of their technical and legal knowledge. In some provinces, the SPIS is voluntary, which has pros and cons. You must sign and date these forms to authenticate your disclosures. The buyer also must sign and date the forms. Even if your province does not mandate a form, it’s important to get a receipt or legally approved document signed by the buyer,
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