If you’re in the market to buy a home or commercial building, you’ll want all the details to make an informed decision. Property sellers in Massachusetts and most states require sellers to provide real estate disclosures to potential buyers before closing the deal. Real estate attorneys strongly advise requesting and reading the entire report. Here is a guide on what is typically included in the document. 

How to Read Property Real Estate Disclosures

What is Included in the Report?

The most common inclusion is a checklist of items in and around the property and their respective conditions. For instance, the roof, foundation, swimming pool, and other exterior structures are reviewed. On the inside of the home or business, electrical, plumbing and HVAC systems are listed. Real estate attorneys advise buyers to ask for information on environmental concerns such as whether asbestos, lead, mold, or mildew is present.

Depending on the real estate disclosure report, other pertinent items such as legal claims and criminal activity reports are included. Homeowner association fees are also listed. If the property’s owner had issues with the home or commercial building, those problems are typically included too.

What Are Massachusetts’ Disclosure Requirements?

Property sellers are only required by state law to disclose whether a septic system is present and if lead paint has been found. Real estate attorneys say it’s up to the potential buyer to ask specific questions about the property. A home inspection initiated by the buyer can help them come up with a comprehensive list of queries.

What Are the Penalties for Failure to Disclose?

Some states will fine sellers who knowingly keep information from the buyers. In most states, a buyer can also cancel a sale if the sellers decline to produce the real estate disclosure report. The same is true if the report is incomplete or contains erroneous information.

Before buying a piece of property, it’s critical to have a detailed and factual real estate disclosure to avoid financial problems in the future. The law office of Bernardini Law P.C., in Essex County, MA, is the legal resource residents and business owners turn to for expert consultation. Give owner and real estate attorney Christine Bernardini a call at (978) 794-5525 before entering into any property transaction. She specializes in providing personalized aid on a wide range of real estate matters.