In real estate, disclosures refer to the information a seller or developer is legally required to provide about a property before selling it. These disclosures ensure transparency and protect buyers from hidden defects or legal disputes. Let’s learn more about what are real estate disclosures.
What are Property Disclosures?
The obligation that the seller in a real estate transaction discloses or identifies significant flaws in the property prior to the sale is a disclosure. The seller must confirm they have a clear title to sell the property.
Encumbrances (mortgages, liens, or disputes) should be disclosed.
A legal due diligence report can confirm ownership.
The property must comply with zoning laws, such as residential, commercial, or agricultural use. Deviations from approved plans must be disclosed.
If the property is involved in any legal cases, buyers must be informed.
Developers must disclose approved building plans and get an Occupancy Certificate (OC) before handing over possession.
Under the Real Estate (Regulation and Development) Act, 2016 (RERA), developers must register projects and disclose:
Project details (completion timelines, approvals, etc.).
Financial details (fund utilization, construction status).
Legal compliance and pending litigations.
Any structural weaknesses, past repairs, or pending maintenance should be shared. Under RERA, builders must fix defects within five years of possession.
Pending property tax, utility bills, or society dues should be disclosed before sale.
I hope you understand what are disclosure documents in real estate.
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When a property transaction takes place, the seller is required to produce the disclosure document. Since you are here asking about what are disclosures in real estate, let me give you a brief quickly. I will also tell you about its importance.
Want to sell your property fast? List it on NoBroker and find genuine buyers quickly Get assistance in documentation and formalities to sell your property smoothly with NoBroker Seller Assist Plans What does disclosure mean in real estate?As I said before, a disclosure document is required to be produced by the seller while selling his/her property. This document shows details about the state of the property. It is important for buyers to know the condition of the property beforehand to estimate the property value properly.
In India, disclosure agreement real estate is concerned with the mortgage of commercial property. The RBI dictates that banks should include the disclosure clause where commercial property owners have to disclose the name of the lender with whom the property is mortgaged as per real estate disclosure law.
I hope your knowledge of what are disclosures in real estate is slightly better now.
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What are disclosures in real estate?
Jatin
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2022-05-19T11:12:58+00:00 2024-10-04T12:30:16+00:00Comment
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