28% of home buyers nationwide find hidden issues in properties after closing. A proper real estate disclosure protects against potential lawsuits. The last thing you want is to be sued for undisclosed defects. A Tennessee seller’s disclosure form is your best defense.
But finding the right disclosure can be tricky, and just one missed issue could cost you a fortune! Houzeo, Tennessee’s best home-selling website, removes this risk by automatically assigning the right forms for your sale. You can complete them online in just a few steps.
KEY TAKEAWAYS
- When to Disclose: Share your Tennessee seller disclosure form with buyers early on, ideally before offers come in. This builds trust and helps avoid deal delays.
- What to Disclose: List down defects like roof leaks, mold, electrical issues, or legal disputes that impact home value.
- Hidden Problems Count Too: Even if a defect isn’t easy to see, like foundation cracks or water damage, you still have to report it.
- Disclosures Can Save You Thousands: Around 77% of real estate lawsuits are linked to disclosure issues. Being upfront helps you avoid costly legal battles.
What Is a Seller Property Disclosure in Tennessee?
In TN, understanding what is a material defect in real estate helps sellers prepare proper disclosures. Disclose any known flaws, such as flooding & earthquakes, or radon gas, that could impact the property’s value. This allows buyers to make an informed decision and avoid nasty surprises.
Is a Seller Disclosure in Tennessee Mandatory?
Yes! The Tennessee real property law requires disclosing all material defects. If your property has foundation cracks, mold or moisture issues, or even a termite infestation, you must disclose it. Don’t risk skipping this step—it’s the law.
What Do You Have to Disclose When Selling a House in Tennessee?
In TN, the state of Tennessee real estate laws mandate disclosure of known defects. This includes structural issues and water damage. Ensure that you disclose these issues if they exist, especially if you are selling a house by owner in Tennessee:
1. Material Defects
- Structure and Appliances: The Tennessee real estate laws require reporting failing HVAC systems. Tennessee’s climate strains many home systems. Cracked foundations must also be disclosed.
- Drainage and Flooding: Understanding what material defects are in real estate helps with proper flood disclosure. Document past water damage from regional flooding. Note any recurring drainage issues carefully.
- Plumbing: The Tennessee real estate law requires disclosing water source information. Report any leaks or septic tank failures. Polybutylene pipes need special documentation.
- Pools and Water Features: A material defect in real estate includes non-compliant pool features. Highlight all safety features and enclosures. Ensure your pool meets the required safety guidelines.
2. Code Violations
- HOA Restrictions and Boundaries: Disclose HOA fees (common in suburbs like Williamson County) and rules—Tennessee law binds buyers to existing HOA covenants.
- Government Restrictions: Reveal any violations of zoning rules, construction breaches, safety codes, or restrictions on property additions. Also, disclose any unrecorded liens.
3. Environmental Hazards
- Health and Safety Risks: Many buyers have bought a house with problems not disclosed related to environmental hazards. Disclose radon, mold, and asbestos issues. Lead paint requires special disclosure forms. (e.g., Chattanooga’s older districts).
- Infestations: Tennessee is notorious for termites. If you’ve had an infestation or damage, make sure it’s disclosed when selling a house as is in Tennessee.
- Sinkholes: Common failure to disclose examples include hidden sinkholes and subsidence issues. This is especially important in East Tennessee. Mention any prior geological surveys.
- Environmental Damage: Disclose oil tank leaks, meth lab contamination, or creek erosion (common near the Tennessee River floodplains).
4. Federal Disclosure Requirements
If your house was built before 1978, you must disclose any lead-based paint hazards. Even for newer homes, the Lead-Based Paint Hazard Reduction Act of 1992 requires sellers to:
- Provide an EPA-approved pamphlet on lead hazards.
- Include the Lead Warning Statement in the contract.
- Disclose any known lead-based paint on the property.
What Can You Skip in a Tennessee Disclosure Statement?
Tennessee law doesn’t require you to include specific details in a disclosure for a real estate statement, such as:
- Deaths or suicides on the property, as long as they don’t affect its condition.
- The presence of a registered sex offender in the area (buyers can check public databases).
- Any claims or beliefs that the property is haunted.
- Whether previous occupants had AIDS or HIV.
What Is the Penalty for an Incorrect Tennessee Home Disclosure?
If you lie or omit information on your Tennessee seller’s disclosure form, you could face severe penalties. These may include one or more of the following:
- Lawsuits for Damages: If you don’t disclose major defects, the buyer can sue you for repair costs. However, they must prove that you knew about the defect and deliberately withheld the information.
- Fraud Charges: If you knowingly provide false information or omit material facts, you may be liable for civil fraud. You may have to pay hefty financial penalties, including compensatory and punitive damages.
- Legal Fees: If the buyer wins a lawsuit, you may be responsible for both the damages and the buyer’s attorney fees. This can significantly increase your financial burden.
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How to Minimize Issues in the Tennessee Seller’s Disclosure Form?
The number of homes for sale in Tennessee is rising, buyers may choose to look for a more suitable house if they find inconsistencies with your disclosure. Here are the tips to save you from any such issues:
- Complete a Pre-Sale Inspection: Complete your seller disclosure Tennessee form thoroughly and accurately. Get a professional home inspection first. Fix what you can before listing.
- Review the Disclosure Carefully: You can compare your forms with the ones offered by top For Sale By Owner site to make sure you didn’t forget anything important.
- Consult with Professionals: If you’re unsure about the disclosure agreement, consult a real estate attorney in Tennessee. They understand local real estate disclosure laws and can help you with the seller disclosure requirements.
- Keep All Bills and Records: These act as supporting documents to your seller disclosure. They also prove that you have addressed any known issues.
- Research Local Hazards: Check FEMA flood zones and East TN sinkhole risks. Disclose nearby hazards like flood-prone areas—even if unaffected.
How Important Is the Seller’s Disclosure Statement in Tennessee?
A seller disclosure in Tennessee is essential for maintaining clarity in your real estate sale. In Tennessee’s competitive market, buyers don’t hesitate to ditch properties with hidden flaws. If you’re upfront with disclosures, you ensure transparency and keep the deal moving forward.
Once your disclosures are ready, the next step is listing. With a Tennessee Flat Fee MLS listing service, you can get your home on the market quickly while saving thousands in agent fees.
