Water-Damage Disclosure Issues! When Does A Seller Need To Disclose?
Sellers must disclose anything that could affect the property’s value or desirability, water damage is usually visible but often times Sellers try to remedy the problem by covering/hiding the problem and don’t understand what the seller disclosure statement means when filling it out. Less than full disclosure can prove to be costly and often times a Buyer may not be able to get insurance. Determining insurability and the affordability of insurance early in a transaction will help eliminate a delay in selling the property to an otherwise qualified buyer.
What does water penetration mean as it is used in the Seller’s Disclosure Notice?
Water penetration typically refers to items related to the structure, such as ceilings, wall, roofs, foundations, and windows. The source of the water is not the determinative factor when ascertaining whether water penetration has occurred. Water Penetration is the entering of water in a place it should not otherwise be by piercing or diffusing through something.
Must a Seller disclose previous water penetration?
If the water penetration has been cured, there is no longer any water penetration. The Seller’s Disclosure Notice requires the Seller to disclose previous water penetration problems especially if an insurance claim has been filled. If water penetration has been cured but the water penetration caused an ensuing defect like a cracked slab the ensuing defect would need to be disclosed. Definition of cured has different meanings for buyers and sellers. We advise to disclose, disclose, disclose.
( Items concerning previous repairs in the TAR Seller’s Disclosure Notice requires to be disclosed are):
Added recently water penetration
If a Seller filed an insurance claim for water damage in the last few years, must he/she disclose this fact to the buyer?
Considering that Insurance companies have been increasingly more selective in determining which properties the companies will insure. A Buyer or Seller may find it difficult to obtain affordable insurance for the property in light of a previous water claim. This is a factual issue that is specific to each property. Seller who filed such an insurance claim in the recent past may find it beneficial to determine if insurance for the property is generally available and affordable. The Seller should disclose the fact that the seller filed a previous insurance claim for water damage in order to encourage the Buyer to determine early in the transaction if the Buyer can obtain insurance.
Buyers in Texas will be able to evaluate the insurability of the home and the affordability of the insurance within the Buyer’s Option Period.
Disclose – Disclose – Disclose
Helping our Sellers to understand the importance of Disclosure is just one of many services I provide in our Austin Northwest Market. If you or someone you know is considering real estate in Austin TX area I would welcome the opportunity to consult with you or them about the many real estate options found in our great city and surrounding areas.
information deemed reliable but not guaranteed, all rights reserved, reader must verify