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Hiding some issues, even though they’re fixed, can lead to legal trouble down the road. Here’s what you need to let buyers know.
I recently spoke with a buyer who closed on a home in November and, soon after moving in, encountered five or six leaks throughout the house. When she looked back at the seller’s disclosure, it said there were no leaks and that there had never been any. That mismatch is where trouble starts, because the disclosure becomes the record of what the seller claimed was true at the time of the sale.
When leaks show up after closing, it’s not just frustrating. It raises questions about what the seller knew, what was disclosed, and what the buyer relied on when deciding to move forward.
What happens when the disclosure doesn’t match reality? In situations like this, the next steps often become more formal than most people expect. The buyer may return to the disclosure statement to confirm what was represented, then contact the home inspector to review what was inspected and the findings documented.
After that, the buyer may speak directly with the seller to address the issue. If the dispute doesn’t resolve and the costs are within the small claims court's limits, the small claims court can become part of the conversation. Once the disclosure is incorrect or incomplete, the problem can spread quickly.
Two ways sellers can protect themselves. If you’re selling and you know there’s an issue, there are two practical paths to avoid a messy dispute later. The first is fixing the problem before listing. If something is repaired up front, the condition of the home and the disclosure are aligned, and buyers have less reason to feel blindsided after closing.
The second is disclosing the issue clearly and pricing the home to reflect it. For example, if a roof leaks or the home needs a new roof, the disclosure should say so plainly. Then the seller can communicate that the home is priced as a great deal because the buyer is taking on that repair. When buyers understand the condition before they sign, they can make a clear decision, and the transaction is much less likely to turn into a dispute later.
“The safest way to sell is to fix known problems before listing, or to disclose them honestly and price the home to reflect the condition.
Top items that need to be disclosed. Some issues show up again and again in seller disclosures, and these are the ones that can cause the biggest problems if they aren’t handled directly.
Water in the basement is a major issue. It doesn’t matter if it was a small amount one time or a recurring issue. If there’s been water, it needs to be disclosed.
Plumbing is another. If you’ve ever had plumbing leaks, that history matters and should be explained clearly.
The furnace should be addressed, too, especially its age. Buyers want to know what they’re inheriting and what may need replacement soon.
Grading problems outside also matter because poor grading can push water toward the house and create ongoing moisture issues.
Windows and gutters come up for similar reasons because they affect how the home handles water.
Cement problems and cracks are also important, including cracks in the ceiling, because they can signal larger issues that a buyer may want to evaluate.
Selling your home shouldn’t turn into a dispute after closing. When repairs are handled upfront or issues are disclosed clearly, buyers know what they’re walking into, and the sale stays on solid ground.
If you’re getting ready to sell and you have questions about what to disclose or how to present it the right way, feel free to call or text me at (616) 532-7200 or email me at larrymartin.com@gmail.com. I can help you review your disclosure form and choose the best approach for a smooth, successful sale.
