To help determine the actual pros and cons of a property involved in the bargaining process, many times sellers are requested to provide property disclosure statements (PDS) that disclose in the latent or unseen factors that may impact the property in the future. This two-page document prompts the homeowner to examine such elements as water rights, zoning, underground storage tanks, plumbing, roofing, wiring and structural issues, and many banks refuse to look at financing a mortgage until the seller has filled-out a property disclosure statement. The PDS document can be of benefit to both the seller and the purchaser if they both understand that even though it is not legally-binding, it can certainly perform a part any future legal action stemming from future problems and needs to be as factual as possible.

The PDS is not considered a legal contract and it is truly voluntary, so a lot of Realtors caution vendors to avoid signing it because it may however produce unforeseen issues in future legal action. The main issue is that the kind of information needed is often difficult for a seller to obtain without expert help and there is a good chance of innocent misrepresentation when sellers try to answer these topics as history of moisture damage or condition of the HVAC systems.

However, the PDS does guard a sellers to a degree, since anything listed in such a document may not later be used as a justification for legal action. Since it is not thought of as a guarantee, it remains the buyers duty to bring in professional evaluators to inspect the property for hidden defects that may be referenced when negotiating the final draft of the agreement.

Agents working with buyers, however, typically push their clients to request a PDS to shield them from fraud and ensure the lender’s commitment in the loan process. By requesting that a PDS be legally incorporated into the agreement – even though it is not essential by law – the new home owner’s agreement gains considerable weight if it is needed in lawsuits stemming from misleading information. Legal proceedings have favored the buyer if the PDS presented to the court demonstrated evidence of deception, and many times the vendor had to reimburse the new homeowner for damages that happened after the agreement was completed, and in some instances years after the property was sold.

Not all PDS documents are equal but they are specific to the type of real estate, whether it be a single-family residence, a rural home, or a condominium with tenants. Specific questions address issues like as historical flooding, illegal rentals or if the property was ever used as a drug lab or grow-op.

PDS is not an available in instances in which the property being offered for sale has been rented to tenants, since the vendor cannot attest to the day-to-day living conditions. This approach is also used for estate properties and situations where the seller is acting as a power of attorney and cannot personally attest to the home’s state. A lot of vendors may use this loophole to avoid having to make the commitment of filling-out the PDS.

Author Bio: Stefan Hyross has been following property subjects for a long time. For those looking for houses for sale in Milton or that special Windsor real estate listings you can go to the sites. You may discover Barrie real estate listings as well at the following site.

Category: Real Estate
Keywords: real estate, home buying, home selling, property disclosure statement