Disclosures in Real Estate - What Are They and What Do They Mean to You?

Disclose: to make known; reveal or uncover, by definition on www.dictionary.com

Disclosure in real estate would define " any material defect that might affect a person's decision to buy."

Disclosures are important for both buyers and sellers in a real estate transaction. A buyer will want to know up front if there is anything wrong with the house. For a seller to disclose potential, or ongoing problems will also prevent a potential lawsuit.

Some disclosures could be a roof leak, rotting sill, wet basement or termite damage. But there are also common ones that you'll see as part of the necessary real estate paperwork you'll be signing.

Lead paint: Outlawed in 1978, some older homes still might have the presence of lead paint if they have not been updated since. Sellers will have the option of disclosing that yes, there is lead paint, no, there isn't lead paint or that they don't know. If they are stating that there is no lead paint on the property, make sure you receive a "lead certification" from a lead paint inspector to verify it. This can be passed down from owner to owner, and will be an official document. If they are stating that they are not sure, a buyer can request a lead paint check during their home inspection.

Radon gas: Certain areas have the potential for having high levels of radon, usually in the basement of a home. Radon is a cancer-causing agent, so it might be something to check for. However, it can be a fairly easy fix by adding proper ventilation. Most people do not check for radon, so sellers might not be aware of any potential radon problems.

UFFI insulation: Urea-formaldehyde foam insulation was a common, blown in insulation back in earlier times. It would be blow into walls, and then expand. The fumes that come off of UFFI insulation were believed to have cancer-causing agents. This was also outlawed in the 1970's, and many home inspectors and attorneys have stated that any dangerous agents would have dissipated by this time. Most sellers will not be aware of UFFI either, unless they have done renovations.

Black Mold: There are thousands of different versions of mold, so if you see a black colored mold, it might not be the one that everyone is automatically thinking about. While mold in a house is never a good thing, make sure it's checked out or disclosed if there is a mold presence. If it is "the" black mold, make sure everyone is alerted immediately, as this can cause a host of problems. Chances are you won't get financing on a home that has black mold.

Make sure when you're buying a home, you ask for the seller to disclose things about the property, and if you're a seller, make sure you do- it will save you from potential "he-said, she-said" problems in the future!