Sonic Realty

Understanding Seller’s Disclosure: A Vital Component of Real Estate Transactions

Understanding Seller’s Disclosure

In real estate transactions, a seller’s disclosure is a legally mandated document that provides essential information about the condition of a property to potential buyers. This document plays a crucial role in ensuring transparency and fairness in the buying process, as it allows buyers to make informed decisions about whether to proceed with the purchase. Let’s delve into the details of the seller’s disclosure, its contents, and its significance in real estate transactions.

What is a Seller’s Disclosure? A seller’s disclosure is a document completed by the seller of a property that discloses any known defects, issues, or hazards related to the property. It typically includes information about the property’s physical condition, history of repairs or renovations, environmental hazards, and other material facts that may affect the buyer’s purchase decision.

Contents of a Seller’s Disclosure: While the specific contents of a seller’s disclosure may vary depending on local regulations and the type of property being sold, everyday items typically included in the disclosure are:

  1. Structural Defects: Information about structural issues or defects, such as foundation problems, roof leaks, or plumbing issues.
  2. Environmental Hazards: Disclosure of any ecological hazards on or near the property, such as lead-based paint, asbestos, radon, or mold.
  3. System Components: Details about the condition and age of major systems and components in the property, including HVAC systems, electrical wiring, plumbing, and appliances.
  4. Legal and Zoning Issues: Disclosure of any legal or zoning issues that may impact the property, such as easements, property line disputes, or violations of local building codes.
  5. History of Repairs or Renovations: Information about past repairs or renovations conducted on the property, including permits obtained and hired contractors.
  6. Neighborhood Conditions: Disclosure of any neighborhood conditions or nuisances that may affect the property’s value or desirability, such as noise disturbances, nearby construction projects, or proximity to commercial or industrial areas.

Significance of Seller’s Disclosure: Seller’s disclosures serve several vital purposes in real estate transactions:

  1. Legal Requirement: In many jurisdictions, sellers are legally obligated to provide a seller’s disclosure to potential buyers. Failure to disclose known defects or issues could result in legal liability for the seller.
  2. Informed Decision-Making: Seller’s disclosures allow buyers to make informed decisions about whether to purchase a property. By disclosing known issues upfront, sellers help buyers understand the property’s actual condition and assess the associated risks.
  3. Risk Mitigation: Seller’s disclosures help mitigate the risk of future disputes or litigation between buyers and sellers by providing a clear record of the property’s condition at the time of sale.
  4. Transparency and Trust: By fully and transparently disclosing known issues, sellers build trust with potential buyers and demonstrate their commitment to a fair and honest transaction.

In conclusion, seller disclosure is a critical component of real estate transactions that promotes transparency, fairness, and informed decision-making. Buyers should carefully review seller’s disclosures as part of their due diligence process and seek clarification or further inspection if needed. Working with a knowledgeable real estate agent can provide valuable guidance and assistance in navigating seller’s disclosures and ensuring a smooth transaction for all parties involved.

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DJ Peterson

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This is to give you notice that Sonic Loans Inc., Sonic Title Agency LLC, and Sonic Realty LLC have a business relationship. The nature of the relationship between the Referring Party and the provider(s), including percentage of ownership interest, if applicable, is: Sonic Loans Inc., Sonic Title Agency LLC, and Sonic Realty LLC are all 100% owned by the same party. Because of this relationship, this referral may provide any of the above parties with financial or other benefit.
A. Set forth below is the estimated charge or range of charges for the settlement services listed. You are NOT required to use the listed provider(s) as a condition for settlement of your loan on, or purchase, sale, or refinance of, the subject property.
THERE ARE FREQUENTLY OTHER SETTLEMENT SERVICE PROVIDERS AVAILABLE WITH SIMILAR SERVICES. YOU ARE FREE TO SHOP AROUND TO DETERMINE THAT YOU ARE RECEIVING THE BEST SERVICES AND THE BEST RATE FOR THESE SERVICES.
Provider and Settlement ServiceCharge or Range of Charges
Sonic Realty LLC1%-6% of purchase price
Sonic Title Agency, LLC Title Insurance Policy: $950 - $1706 on a $250,000 property. (Rates vary and are dependent on the state, selling price, and loan amount on the property.)
Title Search Fee: $250 - $325 (where applicable)
Closing Fee: $450 - $650
Sonic Loans Inc.

This company provides various real estate mortgage loan origination activities either as a third-party originator or a mortgage broker, including loan pre-qualification, competitive bid process (when providing third-party origination services), loan origination, loan pre-approval, loan structuring, processing, and closing.

Loan Origination Charge: 0-3 % of loan amount (may include 3rd party fees)
Loan Discount Fee/points: 0.5%-6% of loan amount.
Application/Processing Fee: $0.00 - $875.00
Flood and tax service: $0.00 - $95.00
Underwriting Fee: $0.00 - $1295.00
Document Review Fee: $0.00 - $400.00
Appraisal Fee: $0.00 - $850.00
Credit Report Fee: $0.00 - $135.00

Actual charges may vary according to the particular lender selected, the particular services provided, and the underlying transaction, borrower selections, etc. Some or all of these fees may be charged by third parties and/or the Member Mortgage Lender/Mortgage Broker. The Member Lenders and Mortgage Brokers have agreed to pay a fee ranging from 0.5% to 2.75% of the loan amount to Sonic Loans in connection with a range of loan origination services provided by Sonic Loans to the Member Lender/Mortgage Broker. The fees are paid either directly to Sonic Loans by the Member Lender/Mortgage Broker or billed directly to you at closing.
B. Set forth below is the estimated charge or range of charges for the settlement services of an attorney, credit reportingagency, or real estate appraiser that we, as your lender, will require you to use, as a condition of your loan on this property, to represent our interests in the transaction.
Sonic Loans Inc. provides mortgage lender/broker services. Sonic Realty LLC provides real estate brokerage services. Sonic Title Agency LLC provides title insurance and settlement services.

Provider and Settlement ServiceCharge or Range of Charges
Appraisal Fee$0-$800
Credit Report Fee$63-$125
 Actual charges may vary depending on the lender and loan program selected which can be found on your loan estimate.
ACKNOWLEDGMENT
I/we have read this disclosure form and understand that Sonic Loans Inc., Sonic Realty, LLC, or Sonic Title Agency LLC are referring me/us to purchase the above-described settlement service(s) and may receive a financial or other benefit as the result of this referral.