We are seriously thinking of selling our home. This past July we had the water line to our fridge burst during the night. As you can imagine there was damage. All was professionally repaired and you cannot tell it ever happened. The water was professionally removed before repairs so there was no chance of mold.
My question is do we have to disclose this event in our potential listing? The house is literally in better condition now than it was before the damage. New drywall, paint, carpet, hardwood. My feeling is no since it was ultimately just a household repair, but I’m curious what all of you think.
Whenever I’ve sold a house, I’ve had to complete disclosure forms. I would imagine that as long as you answer all the questions honestly, you’re in the clear. I certainly wouldn’t volunteer anything unnecessary.
Not a legal opinion here, but I wouldn’t. My understanding is that disclosures are for things that would materially affect the home. Prior repairs do not. Things like leaky faucets, peeling paint, etc would require disclosure.
When I bought a rental home a while back, shortly after closing I got a “2nd notice” from the HOA saying painting was overdue. The prior owners should’ve disclosed that it was required so I was pretty pissed, but not enough to take them to court.
Required disclosures probably depend on your state’s laws. In Wisconsin, very specific things must be disclosed. The seller is liable for not revealing them.
I’d say no but laws about disclosure vary from state to state and even by municipality.
State law will control. Some states require you to disclose deaths and murders that have happened in the home. Others radon gas even if it has been corrected.
I do not think water leaks will be asked about, but answer the disclosure questions as best you can.
Disclosure requirements vary by state. Your RE agent will know what they are in your state, but any buyer normally has a home inspection done to look for problems. They might see that repairs have been done, as they’re trained at that sort of thing, so personally, I wouldn’t try to hide it.
I had a leak from an upstairs tub that stained my kitchen ceiling. They cut a hole in the ceiling to repair it and did a great job patching the ceiling. When I sold the house, the couple that bought it came by and knocked on a Sunday without an agent, and of course my agent wasn’t there either. I let them in, showed them around, told them about the repair, and and pointed out where it was done. They loved the house and I really liked them, so I told them the minimum I’d take, which wasn’t much below asking.
Within an hour of leaving, my agent received an offer from their agent for $5K more than my stated minimum. They said it was because they trusted me and felt good about the house after pointing out a repair they would never have noticed. I also disclosed it to the home inspector when he came. All repairs were done professionally with no mold, so I saw no harm in disclosing it. Not disclosing something someone else might notice makes you look like you are hiding something IMO, which may make them wonder if you’re hiding anything else.
We had exact same problem years ago. Solid oak floors were damaged… If you filed an insurance claim, it probably would show up in a CLUE report
Agreeing that disclosures vary from state to state, but I get concerned about language like if you seller knows of “any” leaks, water damage, etc. When I’ve been the seller the word “any” scares the ____ out of me. When I see that word and believing the issue has been properly resolved (eg paperwork, licensed contractor, etc), my feeling is to disclose. As a buyer it’s probably the single biggest asset they’ll ever own, nobody likes surprises down the road. I’ve told them, if they’re concerned, let them do their due diligence about issue.
I add I’d try to be realistic about “any.” A leaking toilet where I replaced flapper solved problem, I wouldn’t disclose. But water that has come through walls, ceiling, under floors, I’m disclosing.
You need to follow the state law. If it says you have to disclose any water damage, for example, you need to disclose it. That is that. There is a place to describe what happened and what was done. I had similar damage in my house once when we were out of town – had the entire bottom floor wood floors refinished at the insurance company’s expense. I honestly don’t think the kind of leak you are talking about is any big deal to buyers. I had a basement foundation leak that was a MUCH bigger deal in the sale of my house that I had to disclose. And roof leaks or ice dams can cause issues, too. But you can be sued after the fact if you don’t disclose per your state laws, so don’t try to skirt them.
Thanks everyone. State law is very ambiguous on this point. Active issues obviously need to be disclosed but past repairs are not mentioned.
I’ll talk to my agent.
In my state, the duty to disclose applies only to defects that are material and “not apparent or easily ascertainable.” But some court decisions hint that only deliberate concealment of material defect that otherwise would be discovearable will get one in hot water and only in limited circumstances. Even deliberate concealment of rot that could have destroyed the house was not bad enough when the buyers saw some rot and did not make further inquiries into it.
Bottom line: this is state-specific. When in doubt, consult a RE attorney or ask your agent for guidance.
Is the form you have to fill out ambiguous? Don’t just look at the statute, take a look at the form as well.
The forms usually have a catch-all disclosure “anything else?” So good decision to chat with the agent.
BunsenBurner, there is no defect. Everything was repaired and is better than before. The form is ambiguous.
I know that there is no defect (in our state it means any condition that can affect the value of the house, even if it is not an actual defect) . IMO, I would not have disclosed that. We just sold a house… went through that exercise. But some folks like a bit more CYA and go beyond what is needed. The inspectors usually bring a moisture meter and check flooring around fridges and D/W where potential leaks can happen. Ours did. I’m sure if your leak has been professionally repaired there is no moisture detectable.
I bought a moisture meter specifically to test the wood and drywall. No issues.
When we bought our house, the owners flat-out lied on the disclosure forms by saying “unknown.” Of course, it was completely obvious to us that they were doing so. No one has a sump pump in the cellar unless there is occasionally water. The asbestos insulation on the pipes was right there for anyone to see. And so forth.
Our seller painted the entire side of the house to cover up the rot on the siding with dark brown paint. Checked “no” on the “any pest infestations” but there was rat crap and rat traps in the attic and utility room. But… As I said earlier, of the buyer can see it, it is on the buyer. Caveat emptor - in my state:
http://www.helsell.com/2013/04/16/new-case-signals-return-to-buyer-beware/
We disclosed that the drainage from the flat roof/rooftop deck off our master bedroom caused a leak. Since we disclosed it, we gathered a few bids to have it repaired- it was several thousand dollars if we were to fix it.
The buyers never asked us to fix it. That was weird.