Thinking of selling your home? Don’t act too fast if you don’t know your obligations as a seller. There are certain warranties that you, as a seller, are responsible for. Knowing more about the warranties of a home seller can protect you from unexpected events after and during your sale.
What are the Warranties of a Home Seller?
In a contract of sale, there are warranties that are expressed and warranties that are implied.
Expressed warranties are explicit affirmation or statements of facts or guarantees made by the seller to the buyer. These facts are often positive claims that would encourage the buyer to go through with the house purchase. Since the buyer relies on the truthfulness of these claims, express warranty means there is liability if these claims turn out to be false.
Another type of warranties in a contract of sale is implied warranty. It is not necessary for these warranties to have a separate clause in the contract of sale. Still, you are party to these warranties because they are a natural and automatic result of the deal.
There are two kinds of implied warranty commonly asserted:
- Warranty against eviction
- Warranty against hidden defects
Warranty against Eviction of a Home Seller
When selling a home, it is an implied warranty that you have the right to sell the home at the time. When ownership is passed during the sale, it is guaranteed that the buyer would then have legal and peaceful possession of the thing.
This means that at the time before ownership has passed, you as an owner cannot be evicted. More importantly, it means that the homebuyer cannot be evicted from the house once they have legal ownership of the home.
Instances where the seller becomes liable for eviction include selling of the home for nonpayment of taxes due. If this circumstance is present in your case, it is best that you make it known to the buyer before the sale.
Warranty Against Hidden Defects
Another warranty is the warranty against hidden defects. The house is guaranteed to be free from any defects or changes that are hidden from the buyer. This warranty assumes that the buyer is not an expert in detecting such defects, and that even if he was an expert, they still would not be able to detect the defect.
The warranty applies when the defect, which is important or serious, is proven to have existed at the time of the sale, and that notice was given to the home seller.
The obligations of the vendor surrounding these warranties can increase, diminish or be suppressed, depending on existing waivers or arrangements made between the seller and the buyer.
Contact a Real Estate Attorney for Legal Advice
If you would like to know more about the warranties of a home seller, hire a top real estate attorney today. We will help you get familiar with certain legalities before you enter into a contract involving sale or lease of real property. Book an appointment today!
Written by The VanMatre Law Firm, one of the top real estate attorneys in Columbia, MO.