Listing a home for sale is a major undertaking. Most homeowners partner with real estate agents to help ensure they optimize the sale price of their homes. An agent can give them information about the market and assist with paperwork. They can estimate a reasonable sale price given the condition of the property and local market conditions.
Their support while listing and staging the home can lead to a more lucrative transaction and less overall exposure for the seller. One of the most pressing sources of liability when selling a home is the obligation to disclose property issues.
What information do New Jersey sellers need to provide to people who might buy their real property?
Details about known defects, including latent issues
Generally speaking, New Jersey’s real estate disclosure laws require that sellers provide accurate information regarding any known issues with the property’s major systems. For example, if they know there are foundation issues but chose not to invest in the necessary repairs, they typically have to provide information about those concerns to prospective buyers.
Issues with any key house systems, including electrical and plumbing systems, typically require disclosure during a real estate transaction. Sellers generally have to provide accurate information about the condition of the property, even if they intend to list the home in as-is condition.
Environmental issues
Property owners also have to make disclosures regarding any potential environmental issues that could affect the value of the property or the safety of the home. Known flood risks require disclosure. So does awareness of radon.
Buyers generally need to know about any significant environmental issues with the property, such as the presence of lead paint. Even issues that the homeowner may have addressed, such as a prior infestation, require disclosure.
Disclosure laws also apply to any known code violations. If the sellers made repairs or improvements on their own, without working with licensed professionals, they may need to inform the buyers of any non-conforming elements of the property.
Sellers who do not make appropriate disclosures could face liability later. Buyers can theoretically take legal action over undisclosed defects that require costly repairs or lead to unsafe circumstances. Sellers who are aware of their disclosure obligations are less likely to unintentionally violate the law.
Real estate agents are often more focused on optimizing sale revenue than learning about the law. Those preparing for significant, potentially life-altering transactions may need the insight of a real estate lawyer to effectively protect themselves, and that’s okay.