5 Must Know Tips for a Residential Property Disclosure Form
January 5, 2018 |
The Residential Property Disclosure Form (RPDF) is the source of many questions, ranging from who must complete it to how it should be completed. Here we’ll answer some of those questions and provide best practice tips for agents when dealing with the form.
1. Know what type of property requires the RPDF to be completed
- Land that has a building that has one to four dwelling units (i.e. residential property), and there is a proposed sale
- Land installment contract
- Lease option
- A 99-year lease
2. Know what types of conveyances are excluded
- Pursuant to court order
- Deed in lieu of foreclosure and subsequent transfer
- Fiduciary in administration of estate, guardianship or trust
- Between co-owners
- To spouse or former spouse in divorce
- To or from a governmental entity
- Newly constructed property that has not been inhabited
- To transferee residing in the property for one or more years prior to transfer
- Transferor inherited property and has not resided within one year prior to transfer
3. Know when the RPDF should be presented to prospective purchasers
- Prior to the prospective purchaser’s preparation of an offer
- If the RPDF is provided after the property is in contract, the purchaser has 3 business days upon receipt of the RPDF to rescind the contract
- The purchaser must rescind the contract at the earlier of the date that is thirty days after the date upon which the seller accept the purchaser’s offer or the date of the closing
4. Never help your client complete the RPDF
Nor hand write the client’s answers on the RPDF. Any incorrect answers will come back to you, not your client.
5. Advise your client to answer each question thoughtfully and completely
This includes disclosure of any negative inspection reports. As well as, any concealment of information could result in costly litigation against your client, you and your brokerage firm.
A residential property disclosure form is not only important but required by law in many states. Failing to fill one out properly could incur fines or lawsuits. It could even undo your home sale! While you’re minding your legal P’s and Q’s, are you up to date on the new advertising rules for the Real Estate industry?