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Purchasing real property is not without risks, which is why the phrase “caveat emptor” (Latin for “Let the buyer beware”) is still in popular usage today. Despite this, the law does impose a few minimum disclosure requirements on sellers to ensure the transaction is not unusually unfair. Whether you are the seller of a property or the one looking to buy it, you should know what has to be disclosed and what actions you can take if the seller violates these rules. LaFountain & Wollman P.C. explains what you need to know.
Lead Paint
For properties built before 1978, the seller has an affirmative duty to inform the buyer if lead paint is present. This is done by using a document known as a Property Transfer Notification Certification. This tells the buyer, before he or she enters into a purchase and sale agreement, of the following:
- The hazards posed by lead paint
- Any knowledge (or lack of knowledge) about lead paint at the property
- The right to conduct an inspection for lead paint within 10 days of the notification
A couple of things are worth pointing out. First, even if the seller does not know about any lead paint, that doesn’t mean there isn’t any. The buyer should consider hiring his or her own inspector to make sure. Also, failure to comply with the requirements of this certification could result in civil and criminal penalties.
Septic Tank
Next, the seller must notify the buyer if there is a septic tank on the property. The system must be inspected within two years of the sale and the buyer must be provided with a report (called a Title V Certificate) regarding its condition. The seller does not have to fix any problems with the system, only notify the buyer about them.
There are a few exceptions to this rule:
- The inspection may be delayed up to six months after the property sale due to weather conditions
- The seller received a certificate of compliance for a new septic system within three years of the sale and can prove that the system was pumped at least once since then
- The association that governs a condo or townhome is responsible for the inspection and report
Duty to Truthfully Answer Buyer Questions
While there is no affirmative duty beyond the above disclosures, the seller cannot lie or hide the truth if the buyer asks questions about the property. Also, any additional information the seller volunteers must be truthful. For these reasons, it is critical for a buyer to not only hire a home inspector but to also retain legal representation to review all seller disclosures and representations prior to closing on the property.
If the seller violates the above requirements, he or she can be sued for fraud, breach of the purchase and sale contract, and misrepresentation. The buyer may seek substantial damages for compensation and the state can even prosecute certain businesses that are associated with the sale under the Massachusetts Consumer Protection Act.
Our Firm Can Help With Your Real Estate Deal
One of the best ways to protect your interest in property, whether as the buyer or the seller, is to retain experienced real estate counsel. LaFountain & Wollman P.C. is your trusted legal ally. We can explain your rights and obligations whichever side of the transaction you are on and advocate for you in the event of any legal disputes that arise over the property. Call us today to get started.