There’s a lot of paperwork involved in real estate. And one important document buyers should be aware of is the public report. The public report essentially contains information the buyer should read and understand before making their investment. But that’s only the gist of it. Here, we’ll cover everything you need to know about real estate public reports.
What Is a Real Estate Public Report?
A public report is a legal document that contains important information about a property. The seller is required to furnish a public report to the buyer at the time of the contract. The report is usually uploaded to your e-signature software so the buyer can sign it electronically. After the buyer has signed it, the seller will be required to give them a physical copy.
A public report is a legal document that contains important information about a property.
The report is basically like a “pre-inspection” report. It provides information about the property, such as the zoning of the area, a description of the property, a list of all structures on the property, a description of the physical condition of the building, a title search, and any other information that might help the buyer make an informed decision about the purchase.
The public report is important because it helps the buyer avoid some common mistakes. The buyer can use the report to make sure the property has all the permits and licenses it needs to operate. They can also verify that the seller is the owner of the property and that it is free from encumbrances.
What Is in a Public Report?
The seller must provide a public report at the time of the contract. The real estate agent may also prepare their own “agent’s disclosure report” that they will give to the buyer. The seller will typically be required to provide a public report within 14 days of the sale. Various requirements may vary from region to region and state to state.
The public report usually contains the following:
- Title search
- Title insurance policy
- Mortgage statement
- Zoning information
- List of tenants
- Physical description of the property
- Aberration, if any
- Aerial map
- Documentation of permits, licenses, etc.
- Sales and transfer history
- Any litigation involving the property
A public report usually has multiple pages. The public report usually covers the full property, while an agent’s disclosure report will usually cover just the property the agent is representing.
What If the Seller Does Not Provide a Public Report?
Buyers should expect to see a public report on the property contract. There are various reasons why a seller may choose to forgo the public report. But if a seller does not provide a public report to the buyer, that is known as a “failure to disclose.” The buyer may have the option of terminating the contract. They may also be able to seek damages against the seller.
Final Thoughts
The real estate public report is an important document that buyers should not overlook. As long as the buyer understands what they are getting into, they will be able to make an informed decision.
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