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How Much Should You Disclose When Selling Your House?

By U.S. News & World Report

When it comes to real estate, sellers have a legal obligation to disclose past and current defects to potential buyers. But exactly how far does this obligation go? On one hand, sellers want to minimize negative disclosures that may affect their ability to sell the property for maximum profit. Buyers, on the other hand, want to know exactly what they are buying, estimate potential repair expenses and negotiate the purchase price accordingly.

Whether you’re selling or buying, it’s a good idea to understand the basics of real estate disclosures.

[Read: Selling Your House? Here’s What to Do With the Windfall of Cash.]

Required Disclosures

Disclosure laws vary from state to state, and even from county to county or city to city. The general rule is that sellers are only required to disclose defects of which they have personal knowledge. In other words, sellers are not required to hire an inspector to search for problems that the seller isn’t already aware of. However, there are exceptions to this general rule. Some states have laws that do require sellers to look for and report certain problems, such as termite damage.

Typical disclosures include:

— Water damage or mold

— Termite damage

— Cracks in the foundation

— Leaks in the roof

— Issues with any appliances: electrical, HVAC, sewer, water or other mechanical systems

— Previous repairs or renovations

— Potential environmental dangers such as earthquake fault lines, flood zones and frequent wild fires

[Read: How to Sell a Teardown House.]

There are also federal laws that apply no matter where you live. For example, if you’re selling a home built prior to 1978, you must comply with the Residential Lead-Based Paint Hazard Reduction Act of 1992 ( U.S. Code § 4852d), commonly referred to as Title X. Title X requires sellers to:

— Disclose any known lead-based paint in the home;

— Provide buyers with a pamphlet titled Protect Your Family from Lead in Your Home, published by the U.S. Environmental Protection Agency;

— Include specific warning language in the sales contract and get signed statements confirming that these disclosure requirements were completed;

— Keep the signed statements for three years as proof of compliance; and

— Give buyers a 10-day opportunity to test the home for lead.

Failure to comply with disclosure requirements can have serious legal consequences and result in substantial financial liability. Depending on the state, sellers can remain liable for up to 10 years if they fail to make required disclosures. Failure to comply with the requirements of Title X allows a buyer to sue the seller for triple the amount of damages actually suffered.

When in Doubt, Disclose

If there’s any doubt about whether something should be disclosed, the best policy is to err on the side of disclosure. Full disclosure will protect sellers from future legal claims and give buyers confidence that they are being treated fairly. Remember, just because a seller discloses a problem doesn’t mean the seller has to fix it. Interested buyers will be anxious to close the deal as well, and will often be willing to overlook minor issues. More serious defects may lead to negotiation, but won’t be a deal-breaker for serious buyers.

Full disclosure is important to protect both the buyer and seller, to help ensure smooth closing of the sale, and to get the best deal for all involved.

[Read: Can You Actually Turn a Profit Flipping Homes in Today’s Market?]

Trust a Professional

Real estate agents and attorneys can help ensure compliance with the disclosure requirements for your state. Most states have specific forms that must be used when making disclosures. Even if not legally required in your state, it’s good practice for the seller’s real estate agent or attorney to use a form that clearly spells out all of the seller’s disclosures and is signed by both the buyer and the seller. When purchasing real estate, be sure to use licensed, experienced and reliable real estate professionals.

Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice. Individual situations will differ and should be discussed with a licensed attorney. For specific legal advice on the information provided and related topics, please contact the author.

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How Much Should You Disclose When Selling Your House? originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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