You may have read the “full disclosure” phrase in many of your business documents and transactions, but do you know what it really means? As a buyer, how does the concept of full disclosure affect your purchase? Our experts at Altius Mortgage Group weigh in on the topic in an effort to walk you through it.
The Importance of “Full Disclosure” Clause
Many real estate transactions contain the “full disclosure” requirement. It means revealing every material issue that the other party must learn about the transaction. The material issues that require full disclosure are those that may affect whether the client decides to push through with the deal or not. It aims to bring into light everything that could change, clash and affect the contract you are signing.
In most states, real estate agents and brokers need to sign a full disclosure form under the penalty of perjury, in which there may be sanctions to the party who failed to follow the agreement.
Typical Materials to be Disclosed
Real estate agents, brokers and sellers follow the disclosure agreements in service to the buyer. Each state has different regulations on what can be disclosed or not, but in general, full disclosure means revealing property defects and property history. All parties must follow the regulation to avoid any fraud lawsuits.
To qualify for mortgage, the applicants must submit the ‘Truth in Lending’ disclosure, which — according to legal definitions — is a federal law requiring lenders to disclose the true cost of credit transactions by providing certain information to borrowers, including the terms of interest rate, loan, and the amount, number and due dates of all payments necessary to pay off the loan.
As mentioned earlier, every state has some modifications on full disclosure requirements and Utah has the same, too. Find out how our services can help you get pre-qualified for your mortgage loans, and purchase or refinance your home. Talk to our specialists here at Altius Mortgage Group and make your transactions as seamless as possible.