Many states now require agents to have disclosure forms filled-out as part of any transaction. Although most of these requirements deal with sale transactions only, don't be surprised if you soon find yourself as an agent required to have more disclosure forms completed for lease transactions also.

The reason for the disclosure forms themselves are so that property owners fully disclose anything that a prospective buyer may want to know about before he or she actually purchases the property. This then makes an official written record within the transaction of what was disclosed and what wasn't so that everything is spelled-out clearly and the possibility of verbal misunderstandings in transactions are minimized.

Unless in your area it is mandated differently, disclosure forms regarding the condition of the property are to be filled-out by the owner, not by you as the agent. Make sure then that it is your owner who fills-out these forms and don't provide him with any answers to the questions about the condition of the property if you are asked. You don't want to create a potential situation where the owner claims he relied on you for this information if there is a problem with the buyer or lessee after the transaction is complete.

Not too long ago I was involved in a sale where the tenant was exercising its option to purchase the property it occupied pursuant to the terms of a ten-year lease that had been negotiated. When it came time for the owner of the property to fill-out the disclosure forms his attorney insisted that I fill-out these forms for the owner. I refused. The attorney then told me that I was obligated by the State to fill these forms out on behalf of the owner. I told him that I was in fact obligated by the State to NOT fill these forms out on behalf of the owner and I showed him the language in the forms that said this. He of course continued to plead his case to me and grumble, but I wouldn't budge on this one.

The forms were filled-out and sent to escrow by the owner within the next few days.

When it comes time for your owner to fill-out any mandatory disclosure forms in a transaction, let him do it on his own. You as an agent don't need to risk any additional liability in the transaction.