The Sellers Real Property Disclosure (SRPDs) Forms And What You Need To Know

What Are The SRPD’s And How Can It Impact My Deal?

In Nevada we have a form called the Sellers Real Property Disclosure (click the link for your example). By law a home seller must provide this form to the Buyer to disclose any and all known conditions and aspects of the property which impact the value or use of the property in an adverse manner, such as faulty pipes or water damage. It’s a pretty short form and easy to understand.

Here is a quick video breakdown and more details below that!

https://youtube.com/shorts/iSwzyOO3uXw?feature=share

The SRPD form is provided to the buyers once they get into contract with their property, and the forms must be signed off by the buyers. This is something that will allow both parties to have full knowledge of what’s going on with the property and if the buyer wants to cancel the transaction they will get their earnest money (EMD) back without any penalties.

SRPDs not only covers negative issues but also unique conditions like conservation easements or home solar installations, which carry tax implications. Full disclosure allows the buyer to know the condition of the property before the sale is complete. By law, without a complete SRPD, a buyer may cancel the contract with no penalty. If the buyer closes escrow and it turns out that a defect was not disclosed on the SRPD, with solid legal representation, litigation may return triple damages to the buyer.

So if you’re the seller it is important that the Seller’s Real Property Disclosure Form is completed properly and sent to the buyer’s agent in a timely manner. The SRPD consists of five main sections, which are broken down as: one, the individual property, the type of seller, and the primary purpose of the SRPD; two, systems and appliances, conditions of the property for sale, any additional information deemed necessary to convey to the buyer, with “yes” and “no” answers to questions about conditions of the property; three, a very important section where the seller explains in detail any “yes” answers regarding problems in section two; four, a breakdown of NRS 113’s vital points, such as the seller’s obligation to deliver the SRPD to the buyer within 5 days of a contract to purchase, and other important details about document timing and rights to cancel contracts; and five, the signature blocks for buyer and seller, with the seller’s signature block attesting that all information on the SRPD is true and complete to his or her knowledge, and the buyer’s signature block confirming receipt and also recommending a professional inspection of the property to more fully determine its condition.

This form is protecting both parties from future litigation. It protects the buyer’s EMD (earnest m in a situation where they are unhappy with the property and want to cancel the contract. The SRPD does not replace the Home Inspection for the transaction and it is always recommended each buyer should still proceed with their licensed home inspection for that transaction.

Failure to Disclose Defects on Purpose
If a seller doesn’t disclose any material facts knowingly, or worse, makes significant effort to conceal a defect, the purchaser will have several options to consider. However, these will only be applicable if the purchaser wasn’t aware of the facts until after the purchase has been completed. If they knew but chose not to point the defects out to the seller, these rights will be forfeited.

The state of Nevada and Las Vegas therein allow buyers the following rights in case of failure to comply with home disclosure requirements.

  • If the purchase is in its final stage, buyers may choose to cancel the purchase without having to worry about any cancellation fee or fines
  • If the purchase has been completed, they may be entitled to receive a full return of their deposit
  • If they so choose, buyers will be entitled to recover any legal fees involved in the process, along with damages
  • If they don’t choose to cancel the purchase and spend money on repairs, they may be entitled to the repair costs incurred, along with legal fees, if any
  • It is important that buyers do a full sweep of the house and invite experts, if possible. This is because, as mentioned above, the biggest problem faced by buyers is proving that sellers knew about the issue.

If buyers find any material issue that wasn’t disclosed before finalization, it is important that it is brought to light and discussed – either individually or legally. Here is a link to the Nevada Law Reference Guide for your reference.

If you have questions about the SRPDs, or are interested in buying or selling real estate in Las Vegas, please reach out ! Alex Juarez S.0191493, 702-945-3264, www.alexjuarezrealty.com

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