What is a Seller Disclosure Form?
Hi! My name is Greg George. I’m an attorney with Bristol George. This video addresses the question, “What is a seller disclosure form?” We will concentrate on the laws of Idaho in this video.
“What is a seller disclosure form?” A seller disclosure form is a document required by State law that discloses certain physical and/or title conditions of a one- to four-unit residential property by a seller to a buyer during a title transfer. The laws regarding what sellers are required to disclose vary State-to-State. The Idaho law for seller disclosures is found in the:
“Property Condition Disclosure Act”
This law requires that a disclosure form be filled out for most, but not all sales of property consisting of one to four dwelling units.
There are sixteen exceptions to this disclosure requirement, including when a property is sold by an estate or when the buyer has lived at the property for at least a year immediately before the sale. Depending on your specific situation, one or more exceptions may apply.
A seller must disclose, among other things, if there are any problems with the foundation, electricity, heating, septic, drainage, or hazardous materials.
However, Idaho law states the disclosure form is not a substitute for inspections. Idaho is a “Buyer Beware” State, so buyers are advised to have a property fully inspected to their satisfaction before closing.
The Seller must provide the disclosure form to the Buyer within ten days of acceptance of the offer. If the Buyer has a problem with anything disclosed on the form, the Buyer can back out of the sale by giving the Seller a “notice of rescission” within three business days after receiving the form. The notice of rescission must specifically state what items the Buyer objects to.
Idaho law requires Sellers to exercise “good faith,” meaning honesty in fact when making disclosures. If a Seller “willfully or negligently” fails to meet the requirements of the disclosure law, the Seller may be liable for the actual amount of the Buyer’s damages.