WHY FULL DISCLOSURE?
Why tell the buyers about all material facts affecting the home you are selling them? There are two reasons. First, it’s the right thing to do. Second, it helps to avoid litigious experiences, which can be devastating emotionally and financially.
Here’s a rather far-flung—but real—example. The sellers of a home decided that the death of a prior owner within the home was not a material fact regarding the sale of their home, so they chose not to tell anyone. The buyers, however, quickly learned of this fact from their neighbors after they moved in and, because of religious beliefs, they demanded that the sale be canceled.
The matter went to court at length and the buyers won, primarily because the attorneys built a compelling case around the fact that the sellers had clearly chosen to hide this fact. Though it is difficult to see the death as a material fact affecting this sale, for these particular buyers, it definitely was.
The home went back on the market and sold quickly to buyers for whom the death was not a compelling problem. A good deal of time and money was spent, however, on lawyers and changed plans. It’s best not to gamble with non-disclosure, even of facts that don’t seem germane to the sale.
