Full disclosure is the best policy if you don’t want to get sued – Orange County Register

Full disclosure is important in any healthy relationship, even between home buyers and sellers.
To make an attractive purchase offer, home buyers need to disclose their financial capability of making the purchase by showing their pre-approval from a legitimate lender who’s looked at their requisite financial documentation.
On top of that, buyers will also provide proof, in the form of current bank statements, that they have the money on hand to make the purchase. This disclosure may lead to an accepted offer, which will then prompt the seller to have to open his kimono and disclose information about the house.
Urban legend has it that you used to be able to purchase a home in California using one piece of paper. Today it takes upwards of 100 pages, closer to 150 if you are taking out a home loan, and about 80 pages of these are the sellers’ disclosures.
The trickiest disclosure regarding the house itself, in my opinion, is the Seller Property Questionnaire (SPQ). This form was created by the California Association of Realtors’ fleet of savvy attorneys to stave off litigation stemming from disputes over a property’s undisclosed defects.
The meat of the SPQ begins with the question, “Are you (seller) aware of…”
Here’s an example of several of the questions on the SPQ and the types of disclosures you (the seller) might have to make.
Are you (seller) aware of… Repairs and alterations?
If you answer “yes,” you have to disclose the dining room was enlarged, the front bedrooms extended and the roof was replaced in 2011. New insulation was added in 2015. Rain gutters were installed in 2016. The furnace was replaced in 2016. The kitchen was remodeled in 2014 including new flooring, new cabinets, new quartz counters, new stainless steel appliances, new LED lighting, a new sink, new faucet, a new garbage disposal, and was repainted.
Are you (seller) aware of… Water-related and mold issues?
If you answer “yes,” you have to disclose the house was re-plumbed…

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