9. Seller Representation

Seller representations start when Buyer fills in the information for this section from the MLS information, Sellers Property Disclosure Statement (SPDS), and public records. If Buyer is unsure of the information, then leave it blank and ask the Seller to complete. Seller must check this information for accuracy since the Seller’s signature indicates these representations are accurate. Buyer will treat all corrections made as a counteroffer.

(A) Radon Testing and Remediation

This Seller representation section starts with the statement that ”Seller has no knowledge about the presence or absence of radon unless checked below:” Seller must disclose any radon testing or any past or present radon reduction measures on the Property.

In addition, ”copies of all available test reports will be delivered to Buyer with this Agreement.” Also, see the Notice Regarding Radon on the back of page 4.

(B) Status of Water
(C) Status of Sewer

Each of these Seller representations asks for the type system that serves the Property. Sewer is a little more complicated and has 5 Notice Regarding Sewer on the back of page 2. The Pennsylvania Sewage Facilities Act requires these notices.

If the property does not have public sewer then this should be a concern for the Buyer and be the first inspection completed before any other inspections. Even if the Seller has completed an inspection, this is so important that Buyer should always rely on an inspector responsible to Buyer.

(D) Historic Preservation = Money Pit!

If the Property has historic preservation restrictions, Buyer will agree to a long term money pit. The seemingly innocent statement ”Seller is not aware to historic preservation restrictions regarding the Property unless otherwise stated here:”, will cause you more stress than any other section in the Agreement if you are not aware of what the restrictions entail. The restrictions can be put in place by national, state, or local governments as well as community associations.

(E) Preferential Tax Assessment

Seller or a previous owner applied for this preferential tax assessment and used the property for the use intended under the assessment restrictions. If Buyer does not wish to continue with the same use then there may be tax penalties as well as an increase in the taxes paid.

(F) Notices or Assessments
(G) Potential Notices or Assessments

This paragraph is meant to cover any type of notice that might be given to a property owner by a governmental entity including homeowner or condominium association:

(F) ”Seller represents that, as of the date Seller signed this Agreement, no public improvement, condominium of homeowner association assessments have been made against the Property which remain unpaid, and that no notice by any government or public authority has been served upon Seller of anyone on Seller’s behalf, including notices relation to violations of zoning, housing, building, safety, or fire ordinances that remain uncorrected, and that Seller knows of no condition that would constitute a violation of any such ordinances that remain uncorrected, …”

(G) “Seller knows of no other potential notices (including violations) and /or assessments …”

These two paragraphs are a catchall for the Seller. In the past, owners would sell their Property to avoid fees associated with a new public Sewer system. This is prior to disclosure so the Seller is now required to reveal all hidden charges, or be liable.

(H) Public Road Access

This is required by law if the Property’s driveway directly accesses a public road - ”Access to a public road may require issuance of a highway occupancy permit from the Department of Transportation.”


Return From Seller Representation To Part 3 - Contract Contingencies


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