How Form 8865 Disclosure 2023-2024

The topic to be discussed in this session is what sellers and salespeople need to disclose when selling properties. Here are four key lessons to remember: 1. Patent or visible defects do not need to be disclosed. For example, if you can see a defect during a typical home inspection, it does not need to be disclosed by a seller. This can include a crack in a window, mirror, or kitchen counter, a stain under the bed, or damage to a wall behind a picture. The lesson is to be more diligent when inspecting a property before signing any agreement. In the first place, do not be shy about lifting small appliances from the kitchen counter or area rugs and try to make sure all windows actually open properly. 2. Latent or hidden defects need to be disclosed by the seller. Latent defects are defects that a home inspector could not see during a typical home inspection. If a seller knows about a material latent defect and does not disclose it, a buyer can sue the seller even after closing. Examples include water damages that have not been properly repaired, whether from the roof or basement leak, smoke damages from a fire, mold behind the walls, underground fuel tanks, or foundation problems. If a buyer can demonstrate, even after closing, that the seller must have known about the issue, they can be successful in taking legal action against the seller after closing. Buyers should be advised to conduct an insurance search against any property to see if a prior insurance claim was made by a previous owner. 3. Psychological stigmas do not have to be disclosed. Although the law is evolving, sellers do not have to disclose whether there has been a murder or suicide on the property or on...