In Connecticut, a person who is selling a home or other residential property may have to complete a Residential Property Condition Report. This Report requires a seller of the home to answer a lot of detailed questions about the status and condition of the home.
A seller does not have to provide this form when selling commercial property or investment real estate with more than 4 separate dwellings.
The Report covers a wide range of issues, such as whether the seller is aware of any trouble with the heating system in the home to whether the land itself is subject to any restrictions on land use or is in a designated wetland or in an area prone to flooding.
Perhaps the most obvious reason that the Report is important is that Connecticut law requires sellers to provide it. If they do not do so timely, then they must give a $500 credit on the agreed price of the home.
Sellers and brokers must disclose material problems with the homes
More importantly, in Connecticut, the law is that sellers and their agent must disclose material defects in the real estate. Beyond simply not lying about problems if specifically asked, sellers of family homes have to tell buyers if the home has a significant problem.
While this does not mean the seller has to give a laundry list of all the defects of the house, it does at a minimum mean the Residential Property Condition Report must be filled out correctly.
If it turns out that the Report was not accurate and a buyer finds a financially damaging defect with the home, the buyer may be able to use the Report to develop a convincing legal case.