Buying and selling real estate in Alabama requires a working knowledge of what’s required during the process. One of the main things people need to consider is what types of disclosures are mandated within this jurisdiction.
Alabama has some rather unique requirements for real estate disclosures. While many states place the onus on the seller to provide comprehensive disclosures about a property’s condition, Alabama follows a caveat emptor principle for disclosures.
What does caveat emptor mean?
Caveat emptor means “buyer beware,” it’s up to the buyer of a home to unearth defects in the home before they make the purchase. This doesn’t give sellers carte blanche to hide the property’s true condition. Instead, there are specific instances in which the seller is required to provide disclosures to a buyer.
- The seller knows of health or safety-related defects: This includes factors like the presence of asbestos or lead paint and known defects, such as weak spots in flooring or loose light fixtures that will likely fall.
- The buyer asks about specific points: The seller must truthfully answer a buyer’s questions. For example, honesty is required if a buyer asks about the condition of the HVAC unit and the seller knows it needs to be replaced.
- The presence of a fiduciary relationship: This means situations where a party has a legal duty to act in the other party’s best interests.
Because of this, it’s usually best for buyers to ask questions and sellers to be transparent.
How can buyers find out about defects?
One of the most effective ways for buyers to find out about defects and issues with a home they’re hoping to purchase is to have an inspection. Once this is done, buyers should carefully scrutinize the report to better understand what is going on and how various issues could impact them.
If a buyer finds out about defects and can prove that the seller knew about them before the sale, they may opt to take legal action. As such, both buyers and sellers should ensure they have legal assistance to help guide them as they handle any kind of consequential transaction.
