The Offer
Once you have had a buyer make an offer and you have accepted it, you both have certain responsibilities you must live up to. There are two standard contingencies that ensure both parties are covered. There is a financing contingency - this makes the sale dependent upon the buyer's ability to obtain a loan. If they cannot, the seller is free to open the house back up to the market. Then there is an inspection contingency - this ensures buyers a professional inspection of the property to their satisfaction. Once a buyer has put down a deposit, they forfeit it if they back out of the deal for any reason not stipulated in the contract.

Disclosures, Disclosures
Sure, you've heard the old saying: "Buyer beware." But in today's litigious legal world, sellers can't afford to take a purely passive approach to real estate defects. Even an "as-is" contract won't protect you if you knowingly conceal information from a potential buyer. If you know there's a problem with your property, it's up to you to point it out -- or face a costly legal claim!

Just what kinds of problems should you disclose? Anything that's "material" -- that is, that might make a difference to the buyer. Be sure to disclose in writing such items as:

Plumbing or electrical defects;
Safety concerns or potentially hazardous conditions, such as an abandoned well or asbestos insulation; Additions or alterations made without a building permit; and Encroachments or fences not on the property line. Ask your REALTORŪ about other legally required disclosures in your area. In some states, you may be required to disclose the fact that a violent crime has occurred on the property, or to notify buyers about the availability of a list of registered sex offenders. Other mandated disclosures may include seismic activity reports, earthquake readiness, and other data. State law may also prevent sellers from having to disclose that a previous resident had AIDS.

More Legal Issues: