Seller Obligations After Selling a Home

10/23/2024
Posted in Real Estate
10/23/2024 Dave Gooden

Navigating Post-Sale Responsibilities and Disclosures

When selling a home, it’s natural to want closure once the transaction is complete, but sellers can sometimes find themselves dealing with unexpected issues post-sale. The obligations a seller faces after selling a home can vary, but they are typically guided by the terms of the sale, the disclosure laws, and whether the seller misrepresented any known issues. Understanding these obligations helps both sellers and buyers navigate the process more smoothly, especially when concerns arise months after the transaction has been finalized.

One of the most critical elements in determining post-sale responsibilities is the disclosure statement. Disclosure laws vary by state, but in general, sellers are required to disclose known defects or issues with the property before the sale. These could include structural problems, appliance malfunctions, or known leaks, such as the case of a window leak or a water softener issue as mentioned in the example. If a seller fails to disclose a known defect, they could be held liable for repairs or even face legal action if the buyers can prove the defect was intentionally concealed. However, issues that arise after the sale that were not known or that the buyer’s inspection should have caught typically fall under the responsibility of the new homeowners.

Buyers have an inspection period before closing to identify any potential issues. Once the sale is closed, most minor issues that were not apparent during this period become the responsibility of the new owner. For instance, if a buyer discovers a problem with a window several months after moving in, unless the seller was aware of the issue and failed to disclose it, the buyer generally has no recourse. This is especially true if the buyer had a thorough inspection before closing and the issue was not identified. The buyer is expected to perform due diligence, and any issues not found during the inspection are often considered part of the risk of homeownership.

It is also essential for sellers to understand their legal protections. Many real estate contracts include an “as-is” clause, which limits the seller’s liability for issues discovered after the sale. However, this does not absolve a seller from disclosing known defects. If a buyer believes the seller intentionally withheld information, they could pursue legal action, but they would need to prove the seller’s knowledge of the defect. In the absence of such proof, the buyer generally has no grounds to claim compensation or repairs from the seller months after the transaction.

In the case of the window leak and water softener issue, as described earlier, if the sellers were unaware of any ongoing problems, and if these were not flagged during the buyer’s inspection, it is unlikely they would bear any responsibility. The buyers would need to prove that the sellers knew about these issues and intentionally withheld that information, which is often difficult to do without concrete evidence. The passage of time – five months in this case – makes it even less likely that the sellers would be held responsible.

The role of the real estate agent in these situations is also important. Some sellers might feel frustrated if their agent forwards buyer complaints long after the sale, but the agent is often legally required to inform their client of any potential disputes or claims that arise. This ensures that the seller is not blindsided by a potential lawsuit. While the buyer’s complaints may seem trivial, a seller’s agent has a fiduciary duty to inform their client of any communications that could be legally significant.

That said, it is not unusual for buyers to reach out after the sale with concerns that may not be the seller’s responsibility. Real estate transactions can be complex, and new homeowners may not fully understand what falls under their responsibility once the sale is complete. The role of the real estate agent can include gently reminding the buyer’s agent or the buyer themselves of the terms of the sale, including that any issues not disclosed but discovered post-sale are typically the responsibility of the new owner.

As for arbitration, unless both parties agreed to an arbitration clause in the sales contract, the buyers would have to pursue any legal claims through traditional courts. Arbitration can sometimes be included in real estate contracts as a faster, more cost-effective way to resolve disputes, but if the sellers did not agree to arbitration, the buyers would need to prove their case in court, where they may face a higher burden of proof.

In summary, after selling a home, a seller’s obligations typically revolve around what was disclosed and what was agreed upon in the contract. While the sale may bring some lingering concerns from buyers, as long as the seller fulfilled their legal obligations regarding disclosure, the buyers assume responsibility for the property after closing. Issues like window leaks or appliance malfunctions that were not apparent at the time of sale generally become the buyer’s responsibility unless there was clear misrepresentation by the seller. Understanding these obligations can help both sellers and buyers navigate the sometimes tricky waters of post-sale homeownership concerns.

David Gooden is the co-founder of The Dane Arthur Agency and a Lake Minnetonka Realtor.

Close