Real estate transactions involve a lot of paperwork and negotiations, and few documents are more important than the disclosure report. Real estate law requires that the seller gives this report to the buyer after an offer has been made on the property. Here is what you should know about this document to stay compliant with legal expectations.

What Goes Into a Disclosure Document?

The disclosure report describes the property and any “material facts” that could affect its value. If the seller is aware of an issue, they must disclose it. This typically includes basic features like appliances and electrical and water systems used for the property. However, the seller must also disclose any natural or environmental hazards associated with the property, such as an increased risk for flooding or the presence of a tree close to the house.

Hawaii law also requires that sellers release contractors or builders from any liability associated with construction defects on the property. An attorney can help you go over the document to ensure nothing essential is left out.

Penalties for Failure to Disclose

Real estate law is designed to protect both buyers and sellers. Sellers who fail to disclose property problems that they’re aware of could be subject to monetary fines or even held liable for the new owner’s repair costs.

On the other hand, sellers are not responsible for issues that they aren’t aware of. That’s why buyers are encouraged to get a home inspection, which can reveal hidden defects that could also influence the sale.

If you need help navigating real estate law, contact the Law Offices of Reuben S. F. Wong in Honolulu, HI. Serving Oahu for over 50 years, this lawyer and his team have helped area residents find customized solutions for real estate, business, and estate planning law matters. To learn more about their practice areas, visit them online. To schedule a free consultation, or call (808) 531-3526.