Real Estate Investment Disclosure Form – Seller’s Property Disclosure Statement Review

hello everyone and thanks for tuning
into the financial investor channel my name is Brent and today we’re gonna be
doing a look here at the sellers property disclosure I wanted to create
more real estate investment style videos I’m in contract out right now with the
three bedroom one math I made an offer on a duplex that’s a four two it’s two
and one on one side very listen you know it’s brave brand new on the market has
it had any offers on it so I made an offer today on Sunday and we’ll see how
that one goes through so here we’re gonna be doing a video on a sellers
property disclosure statement so if you are brand new to the channel hit the
subscribe button if you do like the content hit the like button and if you
have any questions at all leave them in the comment section below I always
respond to your guys’s comments okay so what is the sellers property disclosure
statement well whenever you’re in contract and you make an offer at a home
and they accept it you can ask for the sellers property disclosure statement
you can ask for the lease agreement you can ask for a number of little things
here but today we’re gonna be talking about the property disclosure statement
which is just a form that the sellers fill out that go over the conditions of
the property and they have to disclose if there were any improvements
renovations upgrades done that you know they’re typical you know you replaced a
roof you installed let’s see you installed a new septic system and then
you know additions to the back of the home I did a walkthrough on one of the
properties that I had you know wasn’t contract but they had huge issues holes
in the ground it had an addition in the back that wasn’t permitted it was
ripping off the other pino the main portion of the house so that was not
done with a city building permit so you would have to go to the city and get
approved that costs extra money and I don’t want to really have to deal with
it they have to disclose if there’s any existence of past termite problems
neighborhood issues and so on so if there’s any issues with the deed or the
the you know any liens on the deed and so on so that’s we’re gonna be doing
this is a typical property disclosure statement here in Oregon I’m not sure if
yours may be different here but I am located here in Oregon and that’s where
I’m in contract with on this home so go ahead and go through here so if you
ever buy a home and it’s just been bought from a construction company which
is what I bought I bought my own personal home back in 2013 from a brand
new construction so this portion here would be fill that you would get this
here initialed and sign that this is the first sale of this drawing that it’s
never been occupied and you would just kind of buyer would sign and date just
you know verifying that they agree you know it’s never been occupied as
brand-new and then it could be purchased but if it if it has been occupied by
either the seller or a tenant then you’d go into the following issues or the
following statement so here first thing you would take a look at is my first
page if you want more information than what the sellers are presenting to you
from these conditions you can always ask for an architect and engineer plumber
electrician roofers you can get a building inspector certified home
inspector and pest and rot inspectors so I am paying from a home inspector to
come out I always recommend getting a home inspection done then having to
contingency for a home inspector in there so if there’s you know some crazy
issue with the roof the foundation because of the contingency and you had
this inspection done you can actually pull out of the deal you get back your
your vested money what’s it called earnest money you would all you would
get that all back you’d have to pay for the inspection which is maybe three
hundred and seventy five dollars and then I like to ask for the pass and dry
raw inspections here in Oregon to be done by the seller so I’ll pay for the
inspector passed and dry rot will be done and paid for by the seller and
because we live in Oregon there’s a bunch of homes here made out of wood and
trees so pass and dry rot always recommend that there as well and this is
not being occupied by the seller this is actually has a tenant in place so once I
got the property disclosure statement and I already knew those a tenant in
there so I asked for the lease agreement as well history for the tenant
you know how long has a tenant been in place have they ever missed their their
rent how often and so on are they behind so these are all questions you should
ask whenever you are buying a property that has a tenant I plan on actually a
removing tenant once I either take the property or if they’re able to be
removed prior that would be great plan on fixing it up and getting it rented at
the market level right now it’s rented almost near half of what it should be
rented for so maybe they were doing somebody a favor there so basically this
the very first thing is the title check so you these are the areas here so first
thing you want to check for if there’s any sort of title issues this is a huge
thing because they would have to get cleared up before you could even take
control of it so here there’s nothing wrong with the title is there anything
wrong with the deed or any sort of issues as far as limitations of the land
property water rights all that that would all be listed here you can kind of
pause it and go through here I don’t want to name them all off because that
would take forever but this is basically just title issues any sort of zoning
overlay and such or actually this year here’s the water issue or the water so
here you would disclose if the source of the water is public community private
favor well or some other way of getting water to that property then you would
put it on there and there’s the water source require water permit so here it’s
all public so no those are important otherwise it would cost additional money
once you took control of the property so next here on the page three here start
at the top still talking a little bit about water water rights and such
bacteria has there been any sort of bacteria or plumbing problems that need
to be disclosed or that need to be prepared any sort of treatments done on
the water itself so plumbing is a huge thing you need to check for so kind of
starting back over here let’s start back on the first page here so yeah nothing
big on the first page especially if you’re buying it from somebody my main
things here is title make sure that that title was clean because that’ll cost you
money to fix up the thought I’ll make sure there’s no liens against the issues
at the boundary from the from the city next is water check to make sure that
the water source is public unless you don’t want a public water source
if there’s any permits that are needing for that source or that you have to be
charged for and then also checked if there’s any sort of plumbing issues or
they need to be repaired and if there’s many any bacteria in that property
that’s also important next is irrigation does that have a
sprinkler system now it’s not important for me to have a sprinkler system this
property here is mainly gravel and what’s called bark it’s something else
they call it you know Lowe’s and Home Depot that have that I can’t think of
the name rain now I have it all outside my front lawn but it’s just like that I
can’t think of it okay anyway it’s kind of going over you know this property has
mainly gravel over it not a whole lot of grass so they don’t have a sprinkler
system installed it’s also gonna be a rental and sprinkler systems they can
freeze over if they’re not well insulated they can cause issues leaks
that’s just another area that can cause and spring issues so this one it’s about
a B Class property you know B area B Class property and no sprinkler system
that’s completely fine here sewage does it have access to a public sewage this
is important you don’t want to be pain I don’t like septic tanks I don’t want to
pick up any properties that have septic tanks because that could cause issues
that the septic tank is old 20 plus years it may need to be replaced there’s
a bunch of new laws in place that septic tank needs to be so far away it’s just
extra money getting tacked on to the cost of the home and repair cost
so here Chuck if there’s a septic tank and make sure it has access to the
public sewage system and then everything here is just sort of applicable to the
septic system and if there’s any sewage system problems or repairs needed so
here’s another big thing make sure that on top of plumbing up here being as
close that there’s no sort of plumbing issues or water issues that are needed
also make sure that the sewage system does not need any repairs or at least
you know they mentioned that it’s not here page number four this goes in the
toilet and insulation so normally if it’s an old property it may not have
insulation within the interior walls and ceiling and floors but this house has
been recently renovated just a few years ago so this one does have insulation in
the ceiling and exterior wall they marked unknown and the floors I
know new homes today do you have insulation on the floors
they put down the foundation they put down the wood works on top and then they
roll this like foam pad this insulation on top between the foundation and the
ground and that’s your insulation there very nice keeps your house heated when
it needs to be heated and cooled when it needs to be cooled are there any issues
or defections defective issues with the insulated doors or windows no depending
on who you want to rent to you need to have insulated doors and windows I
believe for a section a and if you want to sell the home to VA or FHA I believe
they need to have insulated doors and windows to meet certain requirements
dwelling in the structure has a roof ever leaked has it been repaired at all
these are important things to mark so this roof has never leaked also if
you’re having tenants in place when I did my walkthrough on the other property
they didn’t have any carbon monoxide detectors they didn’t have any smoke
alarm systems but they had it a tenant in place that’s a huge risk you can get
sued taking the court on that because you’re not you actually have to verify
you know if the tenant itself takes it out you could be liable for them when I
prefer not to look for homes that have wood stoves or fireplaces but if they do
that’s completely fine that actually counts here in Oregon you have to have a
heat source for the tenant but you don’t have to have a cooling system like an AC
so as long as they have a wood stove or fireplace that’s within the long but
this property here doesn’t have any sort of wood stove it’s all heated by gas so
that’s pretty pretty good pretty norm though here also check for dry rot has
this home had has it has huh has it had an inspection done within the past three
years so has post and dry Ross structure and whole house inspection been done
within the last three years yes so I am also requesting them to do it if they
have a report here recently they’ll probably send it to me I haven’t seen it
do they have any issues with moisture or sump pump in the property I’m not sure
what sump pump is I’ll have to check that out and then are there any sort of
illegal or stuff that would be recalled action lawsuit or settlement against
materials made within this home so the either mark no or not app of cool let’s
go on to the next page here page five so here this basically to talk about the
wiring of the properties of dwelling systems and fixtures there we are how
the electrical system so electrical system including wiring stitches outlets
and services that all within working order and you know of the time of its
purchase yes everything as far as switches outlets and service are you
know are in service pipes faucets fixtures toilets that’s all working and
has a water heater tank so it’s actually heated garbage disposal doesn’t have a
garbage disposal this causes a bunch of issues there’s a but you can look it up
a lot of people when they buy rentals luxury remove the garbage disposal
because if kids or people Jam something down the garbage disposal I’ve heard
crazy stories that people just having weird stuff jammed down there you’ll get
called out there your property manager will get called out there so garbage
disposals just have it removed built in Ranger oven it does have a built in
range in oven heating and cooling systems that has a heating system so it
doesn’t have a fire stove but it does have a heating system which is important
and here we’re talking about security systems talking about other sort of
materials problems in the product with anyway so no nothing there common
interest so here we went from dwelling systems and fixtures so inside the home
to now common interest so is there a home owners association HOA where you
would get charged additional fees and you know little things and then it would
tell you is it part of an HOA who their contract number is and the address this
home does not it’s a single-family home detached from all of them so it does not
and then I kind of go over and talk you know a couple little additions do they
have a home tennis core common entry you know pools
fences what needs to be maintained what’s not maintained so that’s all
covered there huh next is the seismic why can’t they click oh there there we are
so seismic was this home built before 1974 so yes it
was built before 1974 fvs houses house ever been bolted to its foundation so it
has not been bolted to this foundation so this thing here not a huge red flag
here in Oregon we very rarely have any sort of hurt you know earthquakes
it’s all along the coast I know there’s been a couple threes along the coast but
we never feel anything here where I’m located at or where I’m buying this
property so not a huge thing knowing that that’s not bolted to the foundation
here general are there any problems with the settling soil standing water on
drainage so no I know that other property had huge issues with settling
and soil standing water you know had a huge leak out front plus all four
corners of the house had came down does this property contain fill unknown and a
bunch of other you know is there any material damage to the property as far
as when floods beach movements earthquakes no no no is it in a flood
plan no some people really like to not buy homes at a flood plan that’s just
extra insurance you need to have is there any sort of doesn’t in a the slide
or other geological hazard zone no any mold lead and so on septic issues no so
this is just safety here a lot of safety here a lot here towards the bottom has
this property ever been used as an illegal drug manufacturing or
distribution sale that would be a no so good thing there and has this property
been classified as a forest land urban interface no and that is basically it as
far as the disclosures have to go and then on the last page they would just
sign make sure you know property address and then their signature would go right
here down on the bottom better remove that snippet and that is it that’s your
sellers property disclosure you gotta read blonde byline to really get what
they’re kind of going over and disclosing to you mine thing my main
things was the title so make sure that the title is clean plumbing heating dry
rot sewage system electrical plumbing I think we covered a lot about water
sewers I like to have you know no fireplace no but a lot of those little
things here and there could be removed so that is the sellers property
disclosure hopefully it wasn’t too long and if you guys did like that video
remember to give it a thumbs up button below I am going to go ahead and do a
walk-through of this home next Sunday I believe I’m gonna be doing like oh no
I’m gonna be yeah I should have a video out by next Sunday of the walkthrough of
this property and yeah I think that’s good so thank you guys for tuning in if
you do have any other questions let me know in the comment section below this
here is a three-bedroom one-bath here located in Oregon made an offer on a
four-bedroom two-bath so hopefully if that goes through sometime this week and
I get accepted and that is it thank you guys for tuning in I will see you next
time have a great day bye

One Reply to “Real Estate Investment Disclosure Form – Seller’s Property Disclosure Statement Review”

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