One shortcut you should never take is waiving government-required reports. These reports aren’t just red tape—they’re crucial tools that protect buyers, sellers, and agents alike. Skipping them might seem like a way to fast-track your transaction, but it can lead to serious legal, financial, and logistical headaches down the road. Government-mandated disclosures matter more than you think. Here’s why they are important, what to do, and why they shouldn’t be waived.
Review contract terms to confirm actual government reports, required by law, are not being waived in your real estate contract. We cannot waive a “law or municipal code” even if the buyer and seller agree in writing to do so.
It is recommended that the liability or actions required for government reports for various municipalities can be shifted to be the buyer’s responsibility after an escrow closes. This can often be accomplished by an escrow amendment or in the contract documents.
The local laws and ordinances are precise on actions to be taken by a seller to affirm that transfer on sale reports are tendered to a buyer pre-close.
Should there ever be an issue post-close after illegally waiving any of the kinds of reports by contract or in escrow instructions, the liability will fall on the seller, decedent’s trust, probate estate, IAEA estate, etc.
If you would like a list of areas that mandate these reports by law or local municipal code, please contact our team of probate team at marcine.kline@closedescrowinc.com.
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