There is a form that sellers have to fill out when they list a property; disclosing to prospective buyers possible defects with the property that are known to them (leaks, sinkholes, mold, etc.). However, like everything else, this is NOT always the case.
There are usually three types of deals with sellers - a regular sale where the seller lived at the property; a short sale (they lived there but are upside down on their mortgage) and the foreclosure. The regular sale you will get a sellers' disclosure, but your realtor has to request it and it should be reviewed PRIOR to submitting your offer. The second one, the dreaded "short sale" usually provides one, however; if they are not totally truthful and you move in and discover something and want to sue, these people have nothing (they los their home); it is really a waste of paper. The foreclosure does not provide one at all because the banks say they have "no" knowledge of anything "(that's another one that is hard to swallow; they send in people to assess the property). There is also the regular sale that was owned by an investor and he also has the out "he never lived there". I have t wonder though if he/she rented it and there was a problem, I think the investor would know it. Even if the investor used it as a "flip", they go in and fix the property so they are aware of potential problems.
The safest deal is a regular sale and why there are not more, especially if the seller purchased more than 6 years ago, I don't know. This is the perfect time to list because buyers want to take advantage of the credits. Sellers can also move up and get credit.
Call your realtor today and ask questions.
We will always keep you posted.
