Whether you are selling or buying, the mandatory seller disclosure is an important part of the transaction.
As a seller, it is your lawful duty to fully and accurately disclose to the buyer in written form any fact, defect, or condition past or present that may measurably impact the value of the property to a reasonable person.
As a buyer, you will receive such disclosure during the transaction along with a specified period of time to review the disclosure. This is a separate step from the property inspection.
A buyer may not be satisfied with the condition of the property, or with a past condition that may affect the value of the property. To remedy this, a buyer may want to renegotiate the price, request the seller to remedy the condition, or rescind the contract.
Regardless of disclosure, the buyer’s response to the discloser must follow the guidelines of the contract.
Be sure to read the purchase agreement carefully, note the seller’s deadline to disclose, and the buyer’s deadline to accept or reject the agreement on that contingency.
If you need assistance interpreting the contract, you will need an attorney to give you the precise meaning and the implications.
As Realtors, we use a standardized contract for nearly all transactions, it aligns with the spirit of most consumer protection laws, that is to protect consumers. So we highly recommend using the Hawaii Association of Realtors Standard Form. This not only protects the buyer but also serves the seller by enabling a clean and lawful transaction.