Your New Home: Getting Answers Before You Buy

Buying a home often marks the beginning of a new chapter in someone’s life, and getting the details right is important. What we know (or don’t know) about a prospective property can make or break an otherwise desirable deal.

Vital information about a property is commonly presented in disclosures — a formal depiction of the state and history of the property. Still, sellers aren’t required by law to disclose everything about a home, and you may have particular concerns that aren’t addressed by legal mandate. Understanding what the seller is — and is not — required to disclose will help you get the answers you need.

What Does the Seller Have to Tell Me?

While there are certain federally mandated disclosures (such as the presence of lead paint), other requirements vary from state to state. In Pennsylvania, for example, the seller is not required to disclose that a death occurred in the home, while in Kentucky, the seller must disclose such information if asked.

Common mandated disclosures include:

Hazardous Materials. The presence of hazardous materials such as lead paint or asbestos must be disclosed.

Liabilities. The seller must disclose any liens or homeowners association (HOA) obligations associated with the property.

Natural Hazards. In states known for certain types of natural disasters, sellers may be required to disclose risks related to earthquakes, flooding and wildfires.

Physical Condition. The seller has to disclose known issues related to the structural state of the property such as roofing, plumbing, electrical and foundation concerns.

Utilities. Depending on your state, availability and costs of utilities might need to be disclosed.

Zoning. Existing or impending zoning restrictions or land-use changes — particularly those that are likely to affect the value of the property — must be disclosed.

When considering a new home, always be sure to understand what your state requires for disclosure in a real estate transaction.

What Does the Seller Not Have to Tell Me?

While mandated disclosures are helpful in establishing a new and happy home, there are factors that fall outside the scope of regulation. Personal preference and flexibility are important to keep in mind when deciding where to live, and sellers are often not required to tell you things that might otherwise dissuade you from buying.

Things a seller is often not required to tell you include:

Crime. Neighborhood crime is not typically a required disclosure for the seller.

Developmental concerns. Even if a new shopping center or freeway will be constructed nearby, the seller may not be required to tell you about it.

Personal issues. The seller does not have to tell you why they’re moving out — even if it’s a reason that might prompt you to move out, too.

Pet History. Although you may be able to smell it for yourself, the seller is not generally required to inform you of the home’s pet history.

Psychological concerns. As previously noted, the seller may not be required to disclose certain historical unpleasantries related to a property — including whether or not it is allegedly haunted.

Rental. Whether or not the home was previously a rental — or whether or not your prospective new neighbors are renters — is not something the seller likely has to tell you.

Subjective matters. The relentlessly loud neighbor or the continual odor of burnt garlic from the nearby restaurant? Nope. The seller doesn’t have to tell you about either of them.

As always, a careful in-person inspection of the property is a must-do item to check off your list, A drive or walk around the neighborhood at various times of the day (or night) is also a great way to get a feel for what you might experience as the new owner.

Ask Anyway

The best approach is often the most direct: ask your questions. Even if the seller declines to answer in a way that satisfies your curiosity, you’re likely to learn something useful: if they don’t know what that odd smell is, at least you’ll know it’s up to you to find out.

And don’t just question the gray areas; ask about the mandated disclosures as well as the hush-hush stuff the seller would prefer to keep in the background. Even with honest, well-intentioned people, you never know what might have been missed, and finding out before you commit is a lot better than finding out afterward.

The same applies to your homeowners insurance. At Erie Insurance, we pride ourselves in helping our customers look ahead so there are no surprises when it comes to big events. Talk to a local ERIE agent today to learn how you can best protect your new home.

This web page is not intended as legal advice and does not present a complete analysis of the topic presented. Readers should do their own research, consult with an attorney or a licensed realtor.