Trust Sale Disclosures

Trust Sale Disclosures

Ask Phyllis: a blog series of frequently asked real estate questions.

Dear Phyllis,

My son’s in-laws lived in San Diego, and both recently passed. He will be helping his wife sell the family home. Her father passed away about ten months ago, and because her mother was homebound, his wife spent three days a week at the home and hired caregivers for the other four. Needless to say, it’s been very stressful for my son and daughter-in-law. She has hired a Realtor to sell the home. My question is that her Realtor is telling her because she spent so much time there, she should complete additional disclosures not necessarily used in a trust sale. I simply seek your opinion on this matter to convey it accordingly.

Tammy

Dear Tammy,

Full disclosure is crucial to maintaining transparency and avoiding legal issues when selling a home. Here are some key areas for your daughter-in-law to consider when disclosing information to potential buyers:

1. Property Condition:
• Be honest about any known defects or issues with the property, such as structural problems, leaks, or pest infestations.
• Disclose any history of flooding or water damage.

2. Repairs and Renovations:
• If your daughter-in-law knows of any recent repairs or renovations, she should provide documentation and receipts.
• Communicate which parts of the property have been recently renovated or updated.

3. Neighborhood Issues:
• Disclose any neighborhood nuisances or issues, such as noisy neighbors, traffic problems, or upcoming construction projects.

4. Appliances and Systems:
• Inform buyers of the condition of major appliances and systems, such as HVAC, plumbing, electrical, and the roof.
• Disclose any known issues with appliances or systems.

5. Past Insurance Claims:
• If insurance claims are related to the property, share this information with potential buyers.

I concur with the Realtor representing your daughter-in-law on the matter of full disclosure. To achieve this, it is advisable for her to diligently fill out both the Transfer Disclosure and Seller’s Property Questionnaire. It is important to highlight the fact that her residence at the property was not on a full-time basis; rather, she lived there only three days a week for approximately ten months. Although such disclosures are not commonly employed in trust sales, it is crucial to acknowledge that your daughter-in-law possesses a more in-depth understanding of the property compared to a typical trustee.

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