Key Responsibilities in Real Estate: Buyers vs. Sellers

When buying or selling a home, understanding responsibilities for property defects is crucial. Sellers have a disclosure duty, while buyers have an investigation duty. Both parties must play their part to avoid disputes later on.

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What is the Seller’s Disclosure Duty?

Sellers are obligated to inform buyers about any known, hidden defects that could affect the property’s use. If a seller is unaware of a defect, they are only liable if it makes the home unsuitable for normal use.

Visible defects, however, are the buyer’s responsibility. This highlights the importance of thoroughly inspecting the property before purchasing.

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What Happens if an Agent is Involved?

If a real estate agent is managing the sale, the seller’s disclosure duty shifts to the agent. Agents must disclose known or discoverable defects and may be held liable for misleading buyers. They must ensure the seller fulfills their obligations without withholding information.

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What Does the Buyer’s Investigation Duty Entail?

Buyers must actively investigate potential defects by asking questions and using tools like disclosure forms, property viewings, or professional inspections. By fulfilling their investigation duty, buyers can better anticipate repair costs and avoid surprises.

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Liability After the Purchase

Once you sign a standard NVM purchase contract, you accept responsibility for both visible and hidden defects. However, the seller guarantees the property is fit for normal use, unless stated otherwise. Always read the fine print carefully!