Real estate disclosure laws vary considerably among the states. In some states – for example, California – sellers have the legal responsibility of disclosing a multitude of defects. Georgia places more responsibility for finding defects on the buyer. It follows the principle of “caveat emptor,” which in English means “buyer beware.”
That doesn’t mean that sellers are required to disclose defects they know about to buyers. They are. However, Georgia home buyers have more responsibility for finding defects (through inspections and other types of due diligence) than they would if they were buying a home in some other states.
Sellers must disclose known material defects
Material defects are those that could be a safety risk or affect the value of the property. This can include anything from mold and termites to serious electrical and plumbing issues to cracks in the foundation. It can also potentially include things like noise and other neighbor nuisances and upcoming zoning changes. Disclosure is typically done using a disclosure statement, although completion of the statement itself isn’t a legal requirement.
Sellers and their real estate agents who know about material defects and fail to disclose them to buyers and their agents can face civil legal actions for fraud or misrepresentation. If the buyer prevails, they could owe considerable compensation to cover the cost of repairs, other expenses and damages.
Inspections and other due diligence are key for buyers
Regardless of the law, buyers are always smart to ensure that they get a thorough inspection of the home by a reputable inspector of their choice. They can get more information by good old-fashioned legwork, like visiting the property on various days and times of day and talking to those who live in the area. A lot of information is available online as well.
For both buyers and sellers, having a trusted, experienced real estate professional can minimize the chances of unnecessary and costly issues before and after a sale. Having sound legal guidance is also wise to protect your rights.