The Real Estate Seller Disclosure 17 form is a comprehensive document used by sellers to inform potential buyers about the condition and specific aspects of a residential property. It includes various sections covering ownership, structural details, systems and fixtures, and even environmental factors, all aimed at providing a transparent overview of the property’s state. Ensuring accuracy and thoroughness in filling out this form is crucial for both the seller's legal protection and the buyer's awareness.
If you're in the process of selling your property, taking the time to complete this form accurately is a step you shouldn't skip. Click the button below to begin the process of filling out your Seller Disclosure 17 form.
The Real Estate Seller Disclosure 17 form, also known as Form 17, serves as a critical document in the property transaction process, particularly in the transfer of improved residential real property, which includes residential dwellings up to four units, new construction, condominiums not under a public offering statement, certain timeshares, as well as manufactured and mobile homes. This detailed form, revised as of July 2019 by the Northwest Multiple Listing Service, mandates sellers to disclose material facts or defects about the property's condition based on their actual knowledge at the time of completion. Instructions require the sellers not to leave any space blank, to explain any affirmative responses to asterisked items in attached sheets referencing the question numbers, and to date and initial every page of the statement and attachments for their protection. The delivery of this disclosure must occur no later than five business days after a written purchase and sale agreement's mutual acceptance between buyer and seller, unless another timeline is agreed upon. It also provides buyers a three-business-day window from the receipt of this disclosure to rescind the agreement under certain conditions. This document's comprehensive nature allows buyers to gain insights into the property's title, water source, sewer or on-site sewage system, structural integrity, system fixtures, environmental concerns, and much more, thereby underlining its importance in the real estate transaction process.
Form 17
SELLER DISCLOSURE STATEMENT
©Copyright 2019
Seller Disclosure Statement
IMPROVED PROPERTY
Northwest Multiple Listing Service
Rev. 7/19
ALL RIGHTS RESERVED
Page 1 of 6
SELLER: ________________________________________________________________________________________________
Seller
To be used in transfers of improved residential real property, including residential dwellings up to four units, new construction, condominiums not subject to a public offering statement, certain timeshares, and manufactured and mobile homes. See RCW Chapter 64.06 for further information.
INSTRUCTIONS TO THE SELLER
Please complete the following form. Do not leave any spaces blank. If the question clearly does not apply to the property check “NA.” If the answer is “yes” to any asterisked (*) item(s), please explain on attached sheets. Please refer to the line number(s) of the question(s) when you provide your explanation(s). For your protection you must date and initial each page of this disclosure statement and each attachment. Delivery of the disclosure statement must occur not later than five (5) business days, unless otherwise agreed, after mutual acceptance of a written purchase and sale agreement between Buyer and Seller.
NOTICE TO THE BUYER
THE FOLLOWING DISCLOSURES ARE MADE BY THE SELLER ABOUT THE CONDITION OF THE PROPERTY LOCATED AT
________________________________________________________________ , CITY _________________________________ ,
STATE _______ , ZIP _______________, COUNTY____________________________________ (“THE PROPERTY”) OR AS
LEGALLY DESCRIBED ON THE ATTACHED EXHIBIT A.
SELLER MAKES THE FOLLOWING DISCLOSURES OF EXISTING MATERIAL FACTS OR MATERIAL DEFECTS TO BUYER BASED ON SELLER’S ACTUAL KNOWLEDGE OF THE PROPERTY AT THE TIME SELLER COMPLETES THIS DISCLOSURE STATEMENT. UNLESS YOU AND SELLER OTHERWISE AGREE IN WRITING, YOU HAVE THREE (3) BUSINESS DAYS FROM THE DAY SELLER OR SELLER’S AGENT DELIVERS THIS DISCLOSURE STATEMENT TO YOU TO RESCIND THE AGREEMENT BY DELIVERING A SEPARATELY SIGNED WRITTEN STATEMENT OF RESCISSION TO SELLER OR SELLER’S AGENT. IF THE SELLER DOES NOT GIVE YOU A COMPLETED DISCLOSURE STATEMENT, THEN YOU MAY WAIVE THE RIGHT TO RESCIND PRIOR TO OR AFTER THE TIME YOU ENTER INTO A PURCHASE AND SALE AGREEMENT.
THE FOLLOWING ARE DISCLOSURES MADE BY SELLER AND ARE NOT THE REPRESENTATIONS OF ANY REAL ESTATE LICENSEE OR OTHER PARTY. THIS INFORMATION IS FOR DISCLOSURE ONLY AND IS NOT INTENDED TO BE A PART OF ANY WRITTEN AGREEMENT BETWEEN BUYER AND SELLER.
FOR A MORE COMPREHENSIVE EXAMINATION OF THE SPECIFIC CONDITION OF THIS PROPERTY YOU ARE ADVISED TO OBTAIN AND PAY FOR THE SERVICES OF QUALIFIED EXPERTS TO INSPECT THE PROPERTY, WHICH MAY INCLUDE, WITHOUT LIMITATION, ARCHITECTS, ENGINEERS, LAND SURVEYORS, PLUMBERS, ELECTRICIANS, ROOFERS, BUILDING INSPECTORS, ON-SITE WASTEWATER TREATMENT INSPECTORS, OR STRUCTURAL PEST INSPECTORS. THE PROSPECTIVE BUYER AND SELLER MAY WISH TO OBTAIN PROFESSIONAL ADVICE OR INSPECTIONS OF THE PROPERTY OR TO PROVIDE APPROPRIATE PROVISIONS IN A CONTRACT BETWEEN THEM WITH RESPECT TO ANY ADVICE, INSPECTION, DEFECTS OR WARRANTIES.
SELLER IS/ IS NOT OCCUPYING THE PROPERTY.
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I. SELLER’S DISCLOSURES:
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*If you answer “Yes” to a question with an asterisk (*), please explain your answer and attach documents, if available and not
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otherwise publicly recorded. If necessary, use an attached sheet.
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1. TITLE
YES
NO
DON’T
N/A
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KNOW
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A. Do you have legal authority to sell the property? If no, please explain
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*B. Is title to the property subject to any of the following?
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(1)
First right of refusal
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(2)
Option
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(3)
Lease or rental agreement
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(4)
Life estate?
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*C. Are there any encroachments, boundary agreements, or boundary disputes?
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*D. Is there a private road or easement agreement for access to the property?
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*E. Are there any rights-of-way, easements, or access limitations that may affect the Buyer’s use of
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the property?
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*F. Are there any written agreements for joint maintenance of an easement or right-of-way?
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*G. Is there any study, survey project, or notice that would adversely affect the property?
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*H. Are there any pending or existing assessments against the property?
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________________________________
SELLER’S INITIALS
Date
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(Continued)
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*I.
Are there any zoning violations, nonconforming uses, or any unusual restrictions on the
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property that would affect future construction or remodeling?
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*J.
Is there a boundary survey for the property?
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*K. Are there any covenants, conditions, or restrictions recorded against the property?
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PLEASE NOTE: Covenants, conditions, and restrictions which purport to forbid or restrict the
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conveyance, encumbrance, occupancy, or lease of real property to individuals based on race,
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creed, color, sex, national origin, familial status, or disability are void, unenforceable, and
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illegal. RCW 49.60.224.
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2. WATER
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A. Household Water
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(1) The source of water for the property is: Private or publicly owned water system
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Private well serving only the subject property
* Other water system
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*If shared, are there any written agreements?
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*(2) Is there an easement (recorded or unrecorded) for access to and/or maintenance of the
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water source?
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*(3)
Are there any problems or repairs needed?
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During your ownership, has the source provided an adequate year-round supply of potable water?
..
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If no, please explain: ______________________________________________________
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*(5) Are there any water treatment systems for the property?
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If yes, are they: Leased Owned
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*(6)
Are there any water rights for the property associated with its domestic water supply, such
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as a water right permit, certificate, or claim?
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(a) If yes, has the water right permit, certificate, or claim been assigned, transferred, or changed?
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*(b) If yes, has all or any portion of the water right not been used for five or more successive years?
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*(7)
Are there any defects in the operation of the water system (e.g. pipes, tank, pump, etc.)?
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B.
Irrigation Water
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Are there any irrigation water rights for the property, such as a water right permit,
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certificate, or claim?
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*(a) If yes, has all or any portion of the water right not been used for five or more
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successive years?
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*(b) If so, is the certificate available? (If yes, please attach a copy.)
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*(c) If so, has the water right permit, certificate, or claim been assigned, transferred, or changed? ...
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*(2)
Does the property receive irrigation water from a ditch company, irrigation district, or other entity?
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If so, please identify the entity that supplies water to the property:
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_______________________________________________________________________
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C. Outdoor Sprinkler System
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Is there an outdoor sprinkler system for the property?
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If yes, are there any defects in the system?
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If yes, is the sprinkler system connected to irrigation water?
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3.SEWER/ON-SITE SEWAGE SYSTEM A. The property is served by:
Public sewer system On-site sewage system (including pipes, tanks, drainfields, and all other component parts)
Other disposal system
Please describe:_________________________________________________________
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________________________________________________________________
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B. If public sewer system service is available to the property, is the house connected to
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the sewer main?
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If no, please explain:________________________________________________________
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*C. Is the property subject to any sewage system fees or charges in addition to those covered
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in your regularly billed sewer or on-site sewage system maintenance service?
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D.
If the property is connected to an on-site sewage system:
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*(1) Was a permit issued for its construction, and was it approved by the local health
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department or district following its construction?
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(2) When was it last pumped? _______________________________________________
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*(3) Are there any defects in the operation of the on-site sewage system?
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(4) When was it last inspected? ______________________________________________
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By whom: ____________________________________________________________
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(5) For how many bedrooms was the on-site sewage system approved? ______ bedrooms
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E. Are all plumbing fixtures, including laundry drain, connected to the sewer/on-site
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sewage system?
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*F. Have there been any changes or repairs to the on-site sewage system?
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G. Is the on-site sewage system, including the drainfield, located entirely within the
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boundaries of the property?
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*H. Does the on-site sewage system require monitoring and maintenance services more frequently
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than once a year?
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NOTICE: IF THIS RESIDENTIAL REAL PROPERTY DISCLOSURE IS BEING COMPLETED FOR NEW CONSTRUCTION WHICH HAS NEVER BEEN OCCUPIED, SELLER IS NOT REQUIRED TO COMPLETE THE QUESTIONS LISTED IN ITEM 4 (STRUCTURAL) OR ITEM 5 (SYSTEMS AND FIXTURES).
4. STRUCTURAL
*A. Has the roof leaked within the last 5 years?
*B. Has the basement flooded or leaked?
*C. Have there been any conversions, additions or remodeling?
*(1) If yes, were all building permits obtained?
*(2) If yes, were all final inspections obtained?
D. Do you know the age of the house?
If yes, year of original construction: _____________________________________________
*E. Has there been any settling, slippage, or sliding of the property or its improvements?
*F. Are there any defects with the following: (If yes, please check applicable items and explain)
Foundations
Decks
Exterior Walls
Chimneys
Interior Walls
Fire Alarms
Doors
Windows
Patio
Ceilings
Slab Floors
Driveways
Pools
Hot Tub
Sauna
Sidewalks
Outbuildings
Fireplaces
Garage Floors
Walkways
Siding
Wood Stoves
Elevators
Incline Elevators
Stairway Chair Lifts Wheelchair Lifts Other _______________________________________
*G. Was a structural pest or “whole house” inspection done?
If yes, when and by whom was the inspection completed?
______________________________________________________________________
H. During your ownership, has the property had any wood destroying organism or pest infestation?
I. Is the attic insulated?
J. Is the basement insulated?
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5. SYSTEMS AND FIXTURES
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*A. If any of the following systems or fixtures are included with the transfer, are there any defects?
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If yes, please explain: ____________________________________________________
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Electrical system, including wiring, switches, outlets, and service
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Plumbing system, including pipes, faucets, fixtures, and toilets
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Hot water tank
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Garbage disposal
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Appliances
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Sump pump
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Heating and cooling systems
....................................................................................................
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Security system: Owned
Leased
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Other_____________________________________________________________________________________________
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*B.
If any of the following fixtures or property is included with the transfer, are they leased?
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(If yes, please attach copy of lease.)
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Security System: _______________________________________________________________________________
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Tanks (type): ___________________________________________________________________________________
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Satellite dish: ___________________________________________________________________________________
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Other: ___________________________________________________________________________________________
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*C. Are any of the following kinds of wood burning appliances present at the property?
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(1) Woodstove?
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Fireplace insert?
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Pellet stove?
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Fireplace?
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If yes, are all of the (1) woodstoves or (2) fireplace inserts certified by the U.S. Environmental
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Protection Agency as clean burning appliances to improve air quality and public health?
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Is the property located within a city, county, or district or within a department of natural
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resources fire protection zone that provides fire protection services?
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E.
Is the property equipped with carbon monoxide alarms? (Note: Pursuant to RCW 19.27.530, Seller
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must equip the residence with carbon monoxide alarms as required by the state building code.)
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F. Is the property equipped with smoke detection devices?
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(Note: Pursuant to RCW 43.44.110, if the property is not equipped with at least one smoke
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detection device, at least one must be provided by the seller.)
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6. HOMEOWNERS’ ASSOCIATION/COMMON INTERESTS
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A.
Is there a Homeowners’ Association?
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Name of Association and contact information for an officer, director, employee, or other authorized
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agent, if any, who may provide the association's financial statements, minutes, bylaws, fining policy,
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and other information that is not publicly available: ______________________________
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Are there regular periodic assessments?
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$ ______________ per month year
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Other: _______________________________________________________________
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*C. Are there any pending special assessments?
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*D. Are there any shared “common areas” or any joint maintenance agreements (facilities
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such as walls, fences, landscaping, pools, tennis courts, walkways, or other areas
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co-owned in undivided interest with others)?
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7. ENVIRONMENTAL
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*A. Have there been any flooding, standing water, or drainage problems on the property
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that affect the property or access to the property?
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Does any part of the property contain fill dirt, waste, or other fill material?
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*C. Is there any material damage to the property from fire, wind, floods, beach movements,
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earthquake, expansive soils, or landslides?
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Are there any shorelines, wetlands, floodplains, or critical areas on the property?
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*E. Are there any substances, materials, or products in or on the property that may be environmental
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concerns, such as asbestos, formaldehyde, radon gas, lead-based paint, fuel or chemical
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storage tanks, or contaminated soil or water?
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*F. Has the property been used for commercial or industrial purposes?
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Page 5 of 6
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*G. Is there any soil or groundwater contamination?
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*H. Are there transmission poles or other electrical utility equipment installed, maintained, or
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buried on the property that do not provide utility service to the structures on the property?
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Has the property been used as a legal or illegal dumping site?
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Has the property been used as an illegal drug manufacturing site?
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*K.
Are there any radio towers in the area that cause interference with cellular telephone reception?
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8. LEAD BASED PAINT (Applicable if the house was built before 1978).
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Presence of lead-based paint and/or lead-based paint hazards (check one below):
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Known lead-based paint and/or lead-based paint hazards are present in the housing
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(explain). ___________________________________________________________
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Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing.
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Records and reports available to the Seller (check one below):
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Seller has provided the purchaser with all available records and reports pertaining to
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lead-based paint and/or lead-based paint hazards in the housing (list documents below).
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___________________________________________________________________
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Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in the housing.
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9. MANUFACTURED AND MOBILE HOMES
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If the property includes a manufactured or mobile home,
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*A. Did you make any alterations to the home?
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If yes, please describe the alterations: ________________________________________
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*B. Did any previous owner make any alterations to the home?
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*C. If alterations were made, were permits or variances for these alterations obtained?
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10. FULL DISCLOSURE BY SELLERS
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A. Other conditions or defects:
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*Are there any other existing material defects affecting the property that a prospective
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buyer should know about?
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B.Verification
The foregoing answers and attached explanations (if any) are complete and correct to the best of Seller’s knowledge and Seller has received a copy hereof. Seller agrees to defend, indemnify and hold real estate licensees harmless from and against any and all claims that the above information is inaccurate. Seller authorizes real estate licensees, if any, to deliver a copy of this disclosure statement to other real estate licensees and all prospective buyers of the property.
_________________________________________________
____________________________________________________
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If the answer is “Yes” to any asterisked (*) items, please explain below (use additional sheets if necessary). Please refer to the line
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number(s) of the question(s).
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II. NOTICES TO THE BUYER
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1. SEX OFFENDER REGISTRATION
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INFORMATION REGARDING REGISTERED SEX OFFENDERS MAY BE OBTAINED FROM LOCAL LAW ENFORCEMENT
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AGENCIES. THIS NOTICE IS INTENDED ONLY TO INFORM YOU OF WHERE TO OBTAIN THIS INFORMATION AND IS NOT
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AN INDICATION OF THE PRESENCE OF REGISTERED SEX OFFENDERS.
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2. PROXIMITY TO FARMING/WORKING FOREST
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THIS NOTICE IS TO INFORM YOU THAT THE REAL PROPERTY YOU ARE CONSIDERING FOR PURCHASE MAY LIE IN
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CLOSE PROXIMITY TO A FARM OR WORKING FOREST. THE OPERATION OF A FARM OR WORKING FOREST
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INVOLVES USUAL AND CUSTOMARY AGRICULTURAL PRACTICES OR FOREST PRACTICES, WHICH ARE PROTECTED
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UNDER RCW 7.48.305, THE WASHINGTON RIGHT TO FARM ACT.
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3. OIL TANK INSURANCE
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THIS NOTICE IS TO INFORM YOU THAT IF THE REAL PROPERTY YOU ARE CONSIDERING FOR PURCHASE UTILIZES
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AN OIL TANK FOR HEATING PURPOSES, NO COST INSURANCE MAY BE AVAILABLE FROM THE POLLUTION LIABILITY
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INSURANCE AGENCY.
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III. BUYER’S ACKNOWLEDGEMENT
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1. BUYER HEREBY ACKNOWLEDGES THAT:
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A. Buyer has a duty to pay diligent attention to any material defects that are known to Buyer or can be known to Buyer by
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utilizing diligent attention and observation.
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B. The disclosures set forth in this statement and in any amendments to this statement are made only by the Seller and
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not by any real estate licensee or other party.
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C. Buyer acknowledges that, pursuant to RCW 64.06.050(2), real estate licensees are not liable for inaccurate information
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provided by Seller, except to the extent that real estate licensees know of such inaccurate information.
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D. This information is for disclosure only and is not intended to be a part of the written agreement between the Buyer and Seller.
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E. Buyer (which term includes all persons signing the “Buyer’s acceptance” portion of this disclosure statement below) has
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received a copy of this Disclosure Statement (including attachments, if any) bearing Seller’s signature(s).
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F.If the house was built prior to 1978, Buyer acknowledges receipt of the pamphlet Protect Your Family From Lead in Your Home. 280
DISCLOSURES CONTAINED IN THIS DISCLOSURE STATEMENT ARE PROVIDED BY SELLER BASED ON SELLER’S
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ACTUAL KNOWLEDGE OF THE PROPERTY AT THE TIME SELLER COMPLETES THIS DISCLOSURE. UNLESS BUYER
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AND SELLER OTHERWISE AGREE IN WRITING, BUYER SHALL HAVE THREE (3) BUSINESS DAYS FROM THE DAY
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SELLER OR SELLER’S AGENT DELIVERS THIS DISCLOSURE STATEMENT TO RESCIND THE AGREEMENT BY
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DELIVERING A SEPARATELY SIGNED WRITTEN STATEMENT OF RESCISSION TO SELLER OR SELLER’S AGENT. YOU
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MAY WAIVE THE RIGHT TO RESCIND PRIOR TO OR AFTER THE TIME YOU ENTER INTO A SALE AGREEMENT.
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BUYER HEREBY ACKNOWLEDGES RECEIPT OF A COPY OF THIS DISCLOSURE STATEMENT AND ACKNOWLEDGES
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THAT THE DISCLOSURES MADE HEREIN ARE THOSE OF THE SELLER ONLY, AND NOT OF ANY REAL ESTATE
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LICENSEE OR OTHER PARTY.
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_____________________________________________________
___________________________________________________
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Buyer
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2.BUYER’S WAIVER OF RIGHT TO REVOKE OFFER
Buyer has read and reviewed the Seller’s responses to this Seller Disclosure Statement. Buyer approves this statement and waives Buyer’s right to revoke Buyer’s offer based on this disclosure.
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3.BUYER’S WAIVER OF RIGHT TO RECEIVE COMPLETED SELLER DISCLOSURE STATEMENT
Buyer has been advised of Buyer's right to receive a completed Seller Disclosure Statement. Buyer waives that right. However, if the answer to any of the questions in the section entitled “Environmental” would be “yes,” Buyer may not waive the receipt of the “Environmental” section of the Seller Disclosure Statement.
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Filling out the Real Estate Seller Disclosure Statement, known as Form 17, is a critical step in the home selling process. This form requires sellers to disclose information about the condition of their property. Here’s a guide to help you navigate through each section, ensuring you provide all the necessary details to prospective buyers. Remember, being accurate and transparent can help prevent legal issues down the line.
Once completed, this document should be delivered to the buyer within the agreed timeframe. It serves as an official declaration of the property's condition and could be a crucial aspect of the sale negotiation.
What is the Real Estate Seller Disclosure 17 form?
The Real Estate Seller Disclosure 17 form, also known as Form 17, is a disclosure statement required by law in some states for the sale of improved residential real property. This includes residential dwellings of up to four units, new construction, condominiums not under a public offering statement, certain timeshares, and manufactured/mobile homes. The form is designed to disclose the condition of the property at the time of sale, based on the seller's actual knowledge.
Who is required to complete the Form 17?
Sellers of improved residential real property as specified in the form's guidelines are required to complete the Form 17. This requirement is meant to inform the buyer about existing material facts or material defects related to the property.
What happens if a seller does not provide a completed Form 17?
If a seller fails to provide a completed Form 17, the buyer may have the right to rescind the agreement by delivering a separately signed written statement of rescission to the seller or the seller’s agent within three business days from the delivery of the disclosure statement, unless otherwise agreed in writing.
What should a seller do if they answer "Yes" to asterisked (*) items on the form?
If a seller answers "Yes" to any question marked with an asterisk (*), they must provide an explanation of their answer. This explanation should be detailed on attached sheets, referencing the line number(s) of the question(s) being explained.
Is the Form 17 a part of the purchase and sale agreement?
No, the information provided in Form 17 is for disclosure only and is not intended to be a part of the written agreement between the buyer and seller. However, it plays a critical role in the buyer's understanding of the property's condition.
Can the buyer inspect the property?
Yes, buyers are advised to obtain and pay for the services of qualified experts to inspect the property for a more comprehensive assessment. This may include, among others, architects, engineers, and building inspectors.
What are the consequences if inaccuracies are found in Form 17 after the property is sold?
The seller agrees to indemnify and hold real estate licensees harmless from any claims that the information provided in Form 17 is inaccurate. It implies that sellers must provide truthful and accurate disclosures to the best of their knowledge.
Are there any specifics related to water source disclosures?
Yes, sellers must disclose the source of water for the property, whether it is from a private or public water system, a private well, or other. If the water source is shared or if there are any known issues, these must also be disclosed.
What does the Form 17 entail regarding environmental concerns?
Sellers are required to disclose any known environmental concerns related to the property, such as the presence of asbestos, radon gas, lead-based paint, and any soil or water contamination. This section aims to inform the buyer of any potential environmental hazards associated with the property.
One common mistake people make when filling out the Real Estate Seller Disclosure Statement, often referred to as Form 17, is leaving sections blank when the information requested does not apply to their situation. The instructions clearly advise completing all parts of the form and selecting "NA" (not applicable) for any question that doesn't pertain to the property in question. This approach prevents any misunderstandings or assumptions that the seller might have overlooked or intentionally omitted information.
Another area where sellers often err is in not providing detailed explanations for "yes" answers to asterisked (*) items. The form requires that if a seller answers affirmatively to any question marked with an asterisk, they must offer a detailed explanation on attached sheets, referencing the line numbers of the relevant questions. Neglecting to provide these explanations can lead to confusion, misinterpretation of the condition of the property, and potential legal issues down the line.
Many sellers fail to adequately disclose known issues with water sources, as required in the water section of the form. Issues such as inadequate year-round supply, any required treatments, or known problems with water quality must be clearly spelled out. Sellers who neglect to share this information might not only jeopardize the sale but could also face legal consequences for failing to disclose material facts about the property's water source.
A significant error on Form 17 involves inaccuracies or omissions in the section regarding zoning, permits, and the legal status of additions or modifications to the property. If any work was done without the necessary permits or if any part of the property does not comply with current zoning laws, sellers must disclose this information. Failure to do so can result in legal action from the buyer once the oversight is discovered, often after the transaction has been completed.
Lastly, in the environmental section, sellers sometimes underestimate the importance of disclosing potential hazards like the presence of lead-based paint (applicable if the home was built before 1978), asbestos, radon gas, or other environmental concerns. This omission not only risks the health and safety of the buyer but also exposes the seller to liability if harm results from undisclosed environmental hazards. It is critical for sellers to be thorough and transparent when completing this section of the disclosure statement.
When handling real estate transactions, various forms and documents supplement the main Real Estate Seller Disclosure, known as Form 17. These supporting documents are crucial for ensuring a transparent, legally compliant, and informative transaction process. Here's a brief overview of five commonly used documents in conjunction with Form 17:
Understanding and properly handling these documents can significantly influence the success and legality of a real estate transaction. Both buyers and sellers are encouraged to engage with these forms diligently to ensure a smooth and informed property transfer process.
The Lead-Based Paint Disclosure is similarly crucial in real estate transactions involving houses built before 1978. Much like the Seller Disclosure Statement (Form 17), this document informs buyers about the presence of lead-based paint, an important health consideration. Sellers must declare their knowledge of lead paint and provide any existing records or reports. This parallels Form 17’s requirement for sellers to disclose known material facts or defects to potential buyers, ensuring transparency and safety in the buying process.
A Homeowners' Association (HOA) Resale Certificate is another document that resembles the Seller Disclosure Statement. Sellers living in a community governed by an HOA must provide buyers with detailed information about the association's fees, rules, and financial health. This transparency is akin to the detailed disclosures in Form 17, which covers a broad range of property aspects including environmental concerns and structural integrity, aiming to equip the buyer with all necessary information for an informed purchase decision.
The Home Inspection Report, though typically prepared by a third party following an in-depth examination of the property, shares the goal of the Seller Disclosure Statement in informing the buyer about the property’s condition. It covers the home’s structure, systems, and fixtures in much greater detail, thus complementing the disclosures made in Form 17. Whereas the Seller Disclosure is based on the seller’s knowledge, the inspection report offers an expert’s assessment, both serving to reveal critical information to the buyer.
A Title Report mirrors the Seller Disclosure Statement's section on title and access issues by providing a comprehensive history of the property's ownership, outstanding liens, and encumbrances. This report ensures the buyer is aware of any legal impediments that might affect their use or ownership of the property, paralleling Form 17's intent to disclose significant facts that could influence the buyer's decision or future use of the property.
The Natural Hazard Disclosure Statement, required in some states, is like the Environmental section of Form 17. Sellers must disclose if the property lies within areas prone to natural hazards such as floods, earthquakes, or wildfires. This concurs with Form 17’s mandate that sellers report any environmental concerns affecting the property, ensuring buyers are aware of potential natural risks associated with their new home.
The Pest Inspection Report, while specific to inspecting for wood-destroying organisms, aligns with Form 17's question regarding pest infestations. Both documents serve to inform the buyer about current or potential issues related to pest damage, highlighting the importance of addressing these concerns before proceeding with the purchase.
Finally, the property deed itself, while primarily a legal document transferring ownership, shares the essence of the Seller Disclosure Statement by ensuring the buyer receives all necessary rights and privileges associated with the property. Similar to how Form 17 discloses conditions affecting the property’s use, the deed confirms the buyer’s legal claim and any conditions tied to it.
When completing the Real Estate Seller Disclosure Statement (Form 17), ensuring accuracy and full disclosure is crucial. Here are essential dos and don'ts to follow:
Understanding the Real Estate Seller Disclosure Statement, often referred to as Form 17, is crucial for both sellers and buyers in the process of transferring property. However, misconceptions about this form can lead to confusion, missteps, and missed opportunities. Let's clear up some of the most common misunderstandings.
Misconception 1: "NA" means not applicable, so it’s okay to leave sections blank if you don’t know the answer. This is incorrect. Sellers must address every question on the form. If the question does not apply to the property, marking it as "NA," meaning not applicable, is the correct approach. However, leaving questions blank because you're unsure of the answer is not advisable and can lead to complications or mistrust in the transaction. Always strive for full disclosure to the best of your knowledge.
Misconception 2: Only significant issues need to be disclosed. It's a common misunderstanding that minor problems or issues that have been repaired don't need to be mentioned. In reality, sellers should disclose all known material facts or defects, regardless of their current status. This includes past problems that have been fixed. Full transparency is key in avoiding future liability.
Misconception 3: Sellers must fix issues identified in the disclosure. The purpose of Form 17 is to inform, not to obligate the seller to make repairs. Upon learning about specific issues with the property, the buyer has the option to request repairs during the negotiation process, look for another property, or accept the issues as-is. Sellers are not automatically responsible for fixing problems disclosed in Form 17.
Misconception 4: The disclosure form is just a formality and doesn’t carry legal weight. This is not the case. The Real Estate Seller Disclosure Statement is a legally binding document. Sellers who knowingly withhold information or misrepresent the condition of their property can face legal repercussions, including being held responsible for damages and costs that arise from those undisclosed or misrepresented conditions.
Misconception 5: Form 17 is the ultimate safeguard for buyers against purchasing a defective property. While Form 17 provides valuable insights into the property’s condition from the seller’s perspective, it does not replace the need for a professional home inspection. Buyers should always conduct thorough inspections by qualified experts to uncover potential issues that may not be evident to or disclosed by the seller.
In summary, understanding the purpose, requirements, and legal implications of the Real Estate Seller Disclosure Statement is crucial for both sellers and buyers. Clear communication and transparency can facilitate a smoother transaction and help avoid potential legal issues down the line.
Filling out and using a Real Estate Seller Disclosure Statement, often referred to as Form 17, involves several important steps and considerations that sellers and buyers of real estate should be aware of. Regarding Form 17, here are four key takeaways:
Understanding these key points helps sellers accurately depict the condition of their property and informs buyers about potential issues. This process not only ensures compliance with legal requirements but also promotes transparency in real estate transactions, contributing to smoother negotiations and fostering trust between parties involved.
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