Investors who flip homes take neglected, rundown and damaged properties and turn it into good conditions. In selling property you are obliged to tell all the information on the property’s condition and sometimes it would negatively affect the property value and concealing these of pieces information would get you sued or convicted of fraud.
Any home sellers are affected by these rules but flippers who often deal with properties of poor conditions are more likely affected. For this it is better to know the laws and regulations regarding required disclosures from your local planning department and state real estate. Read more about the following information for you to disclose to avoid lawsuits.
1. Death in the Home
Consider that some buyers may have concerns in a buying a home in which someone has died. However each state has its different requirements for disclosure. For example, in Texas, natural death, suicide or accidents that aren’t related to the property are not necessary to be disclosed. On the other hand, if the death has something to do with the property’s condition or crimes it has to be disclosed. One example is a drowning incident of a child due to insufficient safety fence in the swimming pool.
2. Neighborhood Nuisances
A nuisance is a noise or odor coming from the outside of the property that might disturb or irritate people occupying the property. North Carolina obliges sellers to disclose noises, smoke, odors or other nuisances coming from industrial, commercial or military sources.
3. Environmental and Natural Hazards
You may be required to disclose this information to your buyer, in case the home is at a high risk of damage from potential environmental contamination or a natural disaster.
4. Homeowners' Association Information
You should disclose that fact that a home is governed by a homeowners' association along with HOA’s financial health and give this information for the buyer to make an informed decision in buying the property.
Buyers have to know the repair history of the property so they can ask their home inspector to examine the problem areas and expect future issues.