Failure to disclose could lead to real estate litigation

On Behalf of | May 22, 2020 | Real Estate Litigation |

A lot goes into selling a home in Louisiana. It is not as simple as finding a buyer and exchanging property for funds. Buyers have a right to know if there are any issues with the home before the transaction is completed. So, when conducting residential real estate transactions, sellers have a responsibility to disclose any material problems that may affect the property value. Failure to honestly disclose such issues could lead to real estate litigation.

What specific things do sellers have a responsibility to disclose? As previously stated, anything that could negatively impact the property value must be documented. This could be water damage, mold issues, termite damage and lead in the house — among numerous other things. Sellers are not required to go searching for problems to disclose, however. They are only required to document issues that they already know exist.

Any items on the disclosure list may or may not have to be fixed by the seller before the transaction goes through. Who is responsible for repairs must be negotiated and documented in the sales contract. Some buyers may request the repairs be completed by the seller and at the seller’s expense, while others may ask for a price reduction and be willing to tackle the repairs on their own.

Residential real estate transactions do not have to be difficult to get through. It is essential to make sure everything is on the up and up, though, so that a buyer cannot come back to a seller looking for compensation for failure to disclose property problems. An experienced real estate attorney can help home sellers in Louisiana ensure their contracts are legally binding and include all necessary disclosures so that they are protected from future real estate litigation claims following the sale of their property.