Dos and don'ts of seller disclosures

It's best to avoid diagnosing defects

Almost every state in the U.S. requires both sellers and their agents to make disclosures about the condition of the for-sale home. How you make these disclosures can move your transaction forward or land you in a lawsuit.

The company I worked for in California once did a study to determine the factors that were most likely to result in litigation. There were three primary predictors: attorney clients, new construction, and hillside properties. They also found that the closer the property was to Century City (where there was a high concentration of attorneys), the more likely we were to be sued.