The seller has disclosed whatever they claim they know about the property to you in Form 17, also known as the seller disclosure statement. You might assume that you can hold the seller liable for any defect that you may notice later. Unfortunately, that assumption can lead to costly mistakes in Washington. Here is why.
Hidden defects
Many properties have hidden defects. A seller might not have actual knowledge about them. Since a seller is not required to hire experts to discover hidden structural damage or subsurface issues, naturally, the mention of such defects can be absent in Form 17. Hence, Form 17 may not reflect the actual condition of the property you are buying.
Disclosures ignore environmental realities
Form 17 focuses primarily on the physical structure and title of the property. Details such as neighborhood nuisances or local crime are usually not present in it. Additionally, there is no legal requirement for the sellers to disclose such information in the document.
Disclosures are not warranties
It is a common misconception among buyers that disclosures may behave like warranties. Many believe they can sue the seller if they notice undisclosed defects after closing. After closing, the responsibility of proving wrongdoing may fall on you. To hold a seller liable, you are required to prove that:
- The defect existed before closing
- The seller knew about the defect
- The seller intentionally concealed it or lied on the form
It is important to remember that it is a challenging task to prove these elements on your own.
What should you do?
You have to be extra cautious when buying a property as it is a costly affair. You should make sure the property you are buying is free from defects. You can hire home inspection professionals to get an opinion. Furthermore, consulting a legal counselor experienced in real estate law can help you make an informed decision.