Filling out disclosure forms is a time-sucking, ire-inducing, pain in the bum. But they are never going away, so grab a cup of coffee (or a glass of wine) and settle in. We are here to help.
“Are they serious?!?” my client asked, her frustration mounting with each passing moment. (We ‘d sat down to work on her Seller disclosures.)
“Who wrote these stupid questions anyway; they’re incomprehensible.” (Not to mention redundant.)
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Moreover, the questions themselves often require expertise that frankly, most Sellers – and their Agents – don’t possess (and I work with extremely well-educated individuals). She’s got a point, unless you’re a trained engineer, how could you possibly opine about foundations, drainage, cripple walls, earthquake retrofitting, or the structural integrity of a building? (You can’t.) Thankfully, there are licensed and qualified inspectors to help us navigate the pitfalls.
But as to who wrote these questions: lawyers wrote them. And every inquiry likely represents a lawsuit that came about because some Seller forgot to mention – or purposefully left out – material information that reared its ugly head at a later date. (Try not to do that.)
As a result, Sellers are now required (by law) to fill out several questionnaireswhen they sell their homes. Take heed, these seemingly invasive and complicated questions rely on the memory of an elephant, the expectation that all work performed has been diligently logged into an Excel spread sheet, and that any maintenance or improvements you have EVER undertaken on the home are easily accessible and verifiable. (What???)
Let’s be real, most of us are reaching into the far recesses of our fungible brains to come up with a thorough response. As my husband, Cliff, is fond of saying (usually about me) “Memory is, historically, an unreliable source.” But since we’re going down this road, the questions on the Transfer Disclosure Statement and the Seller Property Questionnaire are specifically framed as: “Seller, are you aware . . . ?” In other words, if you have NO KNOWLEDGE, the answer is “no.”
Disclose, disclose, disclose!
However, there are a fair number of Sellers who barely scan the sheets and quickly answer “no”to just about every question posed with the misguided assumption that “NO” answers makes their property appear carefree. (Again, don’t do that.)
Here’s my favorite: “Seller, are you aware of any ongoing maintenance or repairs to the home?” To be clear, that answer should always be: “YES!” Between you and me, I haven’t sold a house OR garden that doesn’t need ongoing maintenance, including, but not limited to: gutter cleaning, window washing, tree trimming/pruning, unclogging drains, replacing furnace filters, sweeping chimneys, mowing lawns, repairing roofs, etc., etc., etc. (The bigger the house and grounds, the MORE maintenance is required).
Live in a house for more than a few years and that list grows and expands exponentially. With respect to my own home, I’m power washing annually, repainting the wrap around porch every few years, fertilizing and mulching the beds, clearing drains, flushing tanks that collect rain water, repainting kitchen cabinets, and constantly amending the irrigation to address new plantings or broken lines (roots tend to wreak havoc on sprinklers). And since we’ve now reached the decade mark, it’s time to repaint the interior as well.
We’ve also replaced hot water tanks, ALL of the plumbing lines inside the walls, repaired floors, ceilings and walls damaged by winter storms, installed AC compressors, rebuilt the garage, added solar panels and power walls, installed an EV charger, carpeted the stairs, replaced windows (blah, blah, blah . . . .) and even with all of that, I’m endlessly tweaking. It’s the nature of the beast.(Or maybe it’s just me.)
“Were these improvements conducted to correct or rectify a problem? (Duh.) That being said, some changes are purely cosmetic or aesthetic in nature which you may qualify. But it’s words like “nuisance” and “material” that tend to trip up Homeowners the most; those who don’t consider the sound of school children playing across the street, OR the bus line that runs in front of their house, OR the football stadium around the corner to be classified as a “nuisance.” (That depends on your point of view.)
But I’m with you. I enjoy the “sounds” and amenities of living in a community; however, if the next door neighbors have a barking dog (or a chicken coop), OR teenagers who’ve formed a garage rock band, OR a massive tree that drops debris across the fence, you should note it.
What’s a “material” finding?
BTW, a “nuisance” or a “material” finding can be just about anything that would cause a prospective Buyer to pause and reconsider if they knew this information prior to the purchase, which is why you want to mention it before they buy – not after. (Better you, than your neighbors – neighbors LOVE to “educate” new Homeowners.) But if you need incentivizing, there’s little recourse for anything that has been outlined fully in the disclosure package (including NOT reading the disclosures).
As to “Are they serious?” the National Association of Realtors, the California Association of Realtors, and the East Bay Association of Realtors are ABSOLUTELY serious, and in your own best interest, you want to take the questions seriously too. The number-1 reason Buyers sue is “failure to disclose.”
I get it, filling out disclosures is a time-sucking, ire-inducing, pain in the bum, but they are never going away, so grab a cup of coffee (or a glass of wine) and settle in. We’ll need about an hour or two to help you fill them out properly. Remember, what you say about your property can potentially save you tremendous drama and expense in the long run.
But not to worry, Sarah and I are going to be sitting there with you holding your hand and offering perspective and hopefully, a little levity. Your answers not only help us understand your property much better, but we will do our best to explain some of the more incomprehensible, seemingly idiotic questions (I don’t totally disagree with my client’s premise. She’s not entirely wrong.)
Let’s get started.
How can we help you?
Julie Gardner & Sarah Abel | Compass Realty
Not just Realtors, but consultants in all things house and home, we’re here to educate, explore, examine and refer . . . In short, you may count on us to take care of your home as if it were our own and anyone who knows us, knows we take pretty darn good care of our homes.
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