A disclosure statement is used in many circumstances, but the selling of real estate is one of the most common times it's used. A disclosure statement is a signed statement by a seller stating any defects a piece of real estate has. All defects, problems or potential problems known by the seller must be disclosed at the time of closing on the property. Failure to disclose known problems by a seller can result in legal consequences. At the time of the sale, a disclosure statement is supplied to the seller. It is the seller's responsibility to fill the form.
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Begin the statement by filling out the property address and name on the property. The first question on the disclosure statement usually affirms that the seller is not qualified in construction projects nor has expertise in this field. If the seller does have knowledge in any subject pertaining to building or construction, it must be disclosed.
Fill out the ownership questions. Disclosure statements ask how long the person has lived at the address of the property and how long the person has owned it. Often, a seller also must disclose of any known pets that have occupied the property.
Answer all questions relating to the property. The disclosure statement asks questions about the condition of the roof, such as when it was replaced, if it leaks and if there are any known issues with it. The next section asks questions regarding termites and damage to wood and questions involving any known pest issues the property may have. The last section asks questions about the structure of the property, such as water problems. If there are any water drainage issues such as flooding, they must be disclosed here. There are blanks on the form for the seller to elaborate on any issue they know of pertaining to the property.
Sign and date the disclosure form. By signing and dating it, the seller affirms that everything known about the property has been disclosed. It also confirms that the information on this form is accurate to the seller's best knowledge.
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