Property Condition and Disclosures

GA Seller Disclosure Laws

Georgia does NOT require the seller to fill out a written disclosure form or statement. The law does REQUIRE the seller to inform the buyer of any known defects in the condition of the home. 

Why is it important to have a seller fill out a written disclosure statement?

• It helps the seller fulfill their obligation to disclose known material facts and defects on the property, thereby reducing the likelihood that they might omit material facts (either accidentally or intentionally)

• It reduces the liability faced by the seller’s agent

Material Facts

Facts that if known could cause someone to take a different course of action or make a different decision regarding the property to be purchased.

Seller'‘s Disclosure Statement

A disclosure of information concerning the property known by the seller

What is the seller responsible for disclosing in the Seller’s Disclosure Statement?

Conditions and information known by the seller.

What conditions are the seller not required to disclosed?

• Conditions and information they are unaware of

• Not responsible for conducting inspections of generally inaccessible areas

Is the seller’s agent responsible for filing out the seller’s disclosure form? Why or why not?

No, the seller’s agent is not allowed to fill out a seller’s disclosure form. This is to ensure that the disclosures being made in writing are done by the seller, protecting the licensee.

Define the phrase “Good Faith”

Being truthful when making disclosures

Caveat Emptor

Buyer Beware. Means even with a written sell’s disclosure statement in hand the buyer should still obtain professional advice and inspections to more fully determine the condition of the property.

Is Georgia a Caveat Emptor state?

Yes

Duty to Speak in Georgia

This law states that although Georgia is a Caveat Emptor state, the law recognizes 3 situations in which the seller has a duty to tell the truth: fraud, deceit, and misrepresentation

Buyer’s Duty to Seek Information

The buyer has a responsibility to do their own due diligence and to seek out information pertinent to the transaction.

Liability of Agent

The seller’s agent will not be liable for any disclosure violation committed by the seller unless the agent knowingly acts with or otherwise aids the seller in committing the violation