Categorized | Real Estate

Types of Disclosure Report Important for Properties

When dealing in properties, whether for renting, selling or investment purposes, disclosure reports are often a necessity. These are especially important when selling the property as it allows the buyer to know all about the potential problems with the house, allowing them to understand a lower asking price or negotiate a lower asking price. Here are some of the types of disclosure reports you will see.

  • Natural Hazard Reports

When natural hazards are a problem, full disclosure is required. Depending on where you live, it will determine whether certain types of insurance will be valid or whether you have to spend more. For example, an area that suffers from flooding will usually need flood insurance on top of normal home insurance – and there will be some companies unable to offer quotes for these properties.

This will affect the ability for people to buy a property and they may request that much more is taken from the asking price. For those who rent from someone, the landlord will need enough cover and the tenants will need to be able to take out home insurance to protect their property. The disclosure allows the tenants to look into their options before agreeing to put down a holding deposit.

  • Contamination Sites Nearby

If there are contamination sites close by, these should be included in a disclosure report. It is important to inform buyers of these issues as it will affect their ability to sell the house on afterwards and to make a profit. This is extremely important for investment buyers and those looking to sell off quickly to make a quick profit.

Contamination sites will affect the ability to live normally and enjoy life, especially if these sites cause smells. The sites may also affect the life of unborn babies, which is something that everyone needs to be aware of before purchasing a property. They need to be able to do the research into the contamination site and determine the risk to them and their family.

  • Deaths within the House

Offering full disclosure will mean informing buyers and tenants if there has been a death in the house within the last three years. This could be from natural or unnatural causes. It can affect the decision to buy a house, especially if it is to do with a crime. By opting for a house with a known crime rate there is a higher risk of that happening again. There is also the risk of insurers not offering home insurance or offering it at extremely high prices.

Some people simply do not like living in a home when they know someone has died. While offering the disclosure report, offer reasons for the death so that the prospective buyers or tenants are able to make a well-informed decision. They can always do the research themselves so it is better coming from you to make the sale easier.

One of the best things that you can do when selling or renting a property is offer a full disclosure report. There are different types, depending on the problems associated with houses and apartments. By offering these full disclosures, there will be no issues should the buyer or tenant find out afterwards and it affects them financially – if you knew about the problems they could hold you responsible. This will help you save money in the long term, even if you do have to lower your asking price.

Author Bio:

Julian Mayhas worked in property investment for 40 years. She is now retired and enjoys writing. She offers tips for other property investors and estate agencies when selling, including offering a natural hazard disclosure report.