Importance of Reading and Understanding Disclosure Statements

By: Benjamin DeBell

You are ready to buy a new house. You're thrilled with the purchase and excited about moving in and making this house a home. The furniture is practically already arranged in your mind. But don't get ahead of yourself. Often, in the excitement of purchasing a new house, people forget to dot their I's and cross their T's. It's crucial that you pay attention to each step in the home buying process, including reading through your disclosure statements. These statements will provide you with important information about your home, information that you might be glad you knew early on.

One of the main things that you'll look for in your disclosure statement is whether the seller of the home is disclosing that there are any 'dangerous conditions' that you should be concerned about. This is obviously something that you want to know before you and your family move into the house. You should make sure that you understand any information that is revealed regarding such conditions and that you understand the ramifications of signing the disclosure statement containing that information. If you aren't sure, ask questions of the home seller or the realtor that you're working with to assist you in purchasing the home. You don't want to move into any space that is dangerous.

Although safety is the most important aspect of the disclosure statement, you will want to pay attention to the rest of the statement as well. Disclosure statements will provide you with important financial information about the property. For example, the disclosure statement may inform you about the profit value of the property to the seller of the home. This can greatly impact your decision to accept the price that you have agreed to; in some cases, you may find out that this home has more potential than you thought as an investment property!

The seller of the home is probably going to give you information in the disclosure statements that you might not have gotten anywhere else. Someone who wants you to buy their house isn't going to come right out and say, 'hey, this place is dangerous and it's not worth anything'. But disclosure statements are legal documents. Failure to provide the information at the time of the sale can give you the right to sue later on. This compels sellers to provide that information. It is your responsibility to make sure that you read through it completely and understand it fully since the information is being provided for your benefit.

Buying a home is definitely an exciting experience. However, it's also a very serious transaction. You are making a purchase that can greatly affect the quality of your life. At the very least, you are making an investment which you always want to do with your eyes wide open. Disclosure statements provide you with all of the facts that you need to make an informed decision about the purchase of a home. By reading through them and making sure to understand them, you safeguard yourself from making a bad decision in the midst of all of that excitement. After you've made a good home choice, you can rest easy and enjoy the experience!

Real Estate
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 

» More on Real Estate
 



Share this article :
Click to see more related articles