Selling your home, regardless of whether it is a condominium or a house, involves having to make decisions. The asking price, closing date and items to be included with the sale of the home are just some of the decisions that must be made. Along with these decisions, you may need to decide how much information about the state of the property you will disclose. This column discusses what needs to be disclosed and what can happen if you fail to disclose certain things to a purchaser.

The law requires that contracts involving the sale of land must be made in writing. In other words, a verbal agreement to sell your home may be unenforceable. There are also legal guidelines that deal with the issue of disclosure -- the act of revealing, exposing or admitting. There are obviously elements of honesty and good faith that go along with disclosure. For example, an age-old ethical dilemma arises when one is selling their home and is aware of a defect that may affect the value or use of the home by the purchaser.

For instance, assume that you are selling your house and you are aware that the roof is leaky, or that the basement floods during heavy rains. Are you obliged to disclose such facts (in writing) to a prospective purchaser? There are some basic rules that provide assistance with this difficult and sometimes complex issue. First of all, prospective sellers should ask their real estate agent to assist them with this issue. A real estate professional will use his or her experience to make the right decision. Often, the realtor will seek the advice of a real estate lawyer, who will provide legal advice. By working in tandem, your realtor and lawyer will be able to provide you with some expert guidance.

If you make this type of decision on your own and you make the wrong decision, the consequences can be disastrous. Suppose you know that the roof leaks or that the basement floods and you deliberately fail to disclose this in the contract to the purchaser. If the purchaser learns of this prior to closing, this may prevent the transaction from closing. Upon learning of the defect after closing, the purchaser may decide to sue you to collect for the necessary repairs. While the answers regarding who is right and who is wrong depend on the circumstances of each case, sellers certainly do not want to deal with the aggravation of defending against a lawsuit from a purchaser.

The prudent course of action is usually to disclose the defects in the agreement to purchase. This way, the purchaser acknowledges the defects and cannot claim later to have been left in the dark. You should obtain proper guidance from your real estate agent and your lawyer. You may receive less money owing to the defects, but if the purchaser wants the house badly enough, a satisfactory agreement may be worked out that will avoid difficulties down the road.

There is an old axiom of law that states that you can only go to court with clean hands. This means that a court of law will look unfavorably upon those who cause their own misfortune or those who have lied. If you are selling your home and it has defects, speak to your realtor or lawyer to determine the best course of action. Making the decision without proper guidance can cost you in the long run.