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New disclosure exemption form available

by Peg Ritenour

Although the Residential Property Disclosure Form has been required by Ohio law for almost 20 years, REALTORS still frequently have questions about the transactions that are exempt from the requirement to use the form. To assist REALTORS, OAR has developed two new tools.

The first is a chart that lists the most common transactions on which you need the form and the ones on which you don’t. The list isn’t exhaustive, but covers the transactions REALTORS are most likely to be involved in.

The second is a form that OAR was asked to develop by several members. The purpose of this form is to have the seller document if they believe they are exempt from the requirement to provide the Residential Property Disclosure form to purchasers. This document could be used in lieu of having the seller cross through each page and writing “exempt” on the form, which is a practice many REALTORS follow.

The form that has been developed by OAR for its members’ exclusive use can be accessed by clicking here. Before you begin using this form, though, here are a few important points:

  1. Because this form is not required by Ohio law, use of it is purely optional;
  2. The form lists only the most common exemptions (including all of them would be too lengthy but click here for a complete list);
  3. Even though a seller may not be required to use the Residential Property Disclosure Statement, they may still need to disclose latent defects and material facts they know about;
  4. REALTORS should always advise sellers to seek legal counsel about whether they are exempt from completing the Residential Property Disclosure Form and any other duty of disclosure they may have.

Again, use of this form is completely optional. If you like it, great! If you don’t find it helpful, that’s fine too!

Tags: legal