Regardless of whether you’re planning on buying or selling a home in Ohio, it’s wise to familiarize yourself with the state’s disclosure obligations under real estate law. Sellers who fail to fill out the residential property disclosure form correctly could end up facing a lawsuit, while buyers who fail to review it closely could end up making a bad investment. Here’s what everyone in the Buckeye State should know about disclosure reports before commencing a transaction.

What Should the Report Contain?

In the residential property disclosure form, sellers must list any known issues (or potential issues) that are not glaringly apparent. The form is comprised of 14 questions that current owners should answer to the best of their ability. In other words, if they know of a defect, they should include it on the form; however, they do not have to schedule an inspection to identify any problems that they do not know exist. 

The questions address everything from the roofing and foundation to the appliances and utility systems. And if the home was built before 1978, federal law requires owners to disclose all known lead-based paint hazards, as well. 

What Are the Penalties for a Failure to Disclose?

If a seller fails to disclose a known defect, the buyer may be able to sue him or her for damages. To win the case, though, the buyer must prove that the seller knew or should have known about the defect. Depending on any contingencies in the real estate contract and the stage at which the defect is discovered, it may also be possible for the buyer to back out of the sale entirely. 

If you’re planning on buying or selling property in Ohio, turn to the real estate law team at Morrow, Gordon & Byrd, Ltd. for guidance. Serving clients throughout New Albany, Westerville, and the surrounding areas, this firm is backed by more than 80 years of experience in the legal field. In addition to real estate law, their knowledgeable attorneys practice family law, bankruptcy law, tax law, business law, and a few other specialties. To explore all the services their strategic team provides, visit their website. To request an initial consultation, call (740) 345-9611.