California home and property buyers should be well informed about a property disclosure. This is a mandated document by the state of California that requires the seller to specify any major issues with the property. As a buyer, this document will help you to determine whether or not the property is actually worth the amount of money that the seller is asking for it.
What’s included in a disclosure agreement?
Real estate disclosure agreements include a wealth of information ranging from structural information to whether or not someone died in the home in the last 3 years. It’s important for any buyer to sit down and read through the entire disclosure agreement. This way, you can learn about any specific structural problems with the home that may impact its value in the future or your ability to obtain financing for the property.
How can a disclosure agreement affect your financing?
One thing that buyers may not think about when it comes to purchasing a property is the specific property issues that a bank will refuse to deal with. For example, if a house has a structural integrity problem, it’s not likely that a traditional bank will be willing to finance the purchase. They realize that the value of the home will likely diminish after the purchase due to the structural integrity issue. It’s a good idea to speak with your creditor to determine what sort of issues will cause them to revoke financing for the purchase of any home. This will allow you to discount any potential homes with those problems in the disclosure agreement.
When you go to buy real estate in the state of California, the seller is legally expected to provide you with a disclosure statement. This disclosure statement is essential to helping you determine if there are any major problems with the property and whether they will hinder your ability to get financing. If you have questions regarding the disclosure agreement, you can divert them to an attorney.