There are important disclosure requirements when selling a home which apply to flipping a house and selling it. To help avoid potential problems, it is essential for home flippers to be familiar with what they need to disclose when selling a home. Those flipping homes may run into problems if known defects are left undisclosed.
Problems with undisclosed defects
Undisclosed defects that can cause problems may include:
- Bad sewer lines or rusted pipes;
- Outdated plumbing;
- Outdated wiring;
- Bad roofing;
- Electrical, plumbing and HVAC issues;
- Hidden water damage;
- Rotted wood or termites;
- Huge cracks in driveways;
- Cracking home foundations;
- Bad or old ventilation or windows;
- Septic system or heater issues; and
- Radon leaks;
Undisclosed defects can impact the value and useability of the property and can lead to significant expenses and damages for homeowners. Extensive home repairs may be required and homeowners may suffer other damages as a result of undisclosed defects.
Addressing the issues
Legal resources may help homeowners recover compensation for repairs and other damages or may be able to help those flipping homes who have properly disclosed known defects because the protections apply to known defects. For that reason, to help avoid home flipping legal issues, both those flipping homes and home buyers should be familiar with what must be disclosed during the home buying process and the legal resources available to help them.