Selling a home is a significant life event, often accompanied by a flurry of emotions, logistics, and paperwork. For the buyer, it’s an exciting time filled with dreams and possibilities. That being said, one aspect that both sellers and buyers need to consider is disclosing certain life changes before closing.

In this post, we explore the importance of both parties communicating life changes and how to navigate this aspect of the real estate transaction.


Why You Should Announce Life Changes Before Closing

Transparency in real estate transactions is key to building trust between buyers and sellers. While you are not obligated to divulge every personal detail, certain life changes can impact the sale and should be disclosed for the following reasons:

        • Legal and Ethical Obligation: Sellers and buyers must disclose material facts about the property. Material facts often include issues that affect the property’s value or condition, but they can also extend to changes in one of the parties’ circumstances that may impact the sale.
        • Avoid Legal Consequences: Failure to disclose material facts can lead to legal repercussions, including lawsuits from buyers or sellers who feel they were misled or financially harmed by undisclosed information.
        • Maintain a Positive Transaction: Being transparent can foster a positive transaction experience and lead to smoother negotiations.
        • Avoid Closing Delays: Certain life changes, such as pending divorces or job relocations, may affect the seller’s ability to close the sale on time. Disclosing these changes upfront allows all parties to make informed decisions and adjust their timelines accordingly.


Life Changes That Sellers Should Disclose

While the specifics can vary based on local laws and regulations, here are some common life changes that sellers should consider disclosing before closing:

        • Divorce or Separation: If a divorce or separation is in progress or may affect the sale, it’s typically best to inform potential buyers. This disclosure can help manage expectations regarding property division and timing.
        • Relocation: If you’re moving to a different city or state, disclose this information to buyers. They may need to consider whether the timing aligns with their plans.
        • Health Issues: While personal health matters are typically not disclosed, if various modifications need to be made to the closing documents or how to handle the transaction, these should be disclosed so that assistance can be made accordingly.
        • Property History: Any significant events related to the property, such as recent renovations, repairs, or incidents, should be disclosed.
        • Pending Litigation: If there is any ongoing legal action related to the property, potential buyers should be informed. This includes disputes with neighbors, boundary issues, or outstanding lawsuits.
        • Death:  Although rare and unfortunate, sometimes sellers pass away during the process.  Although this sometimes doesn’t hinder a deal, it can create extra time and paperwork to process the transaction.


Common Life Changes Buyers Should Disclose

Here are some common life changes that buyers should consider disclosing before closing:

        • Financial Status: If your financial situation changes significantly, such as a job loss or decrease in income, it’s important to inform the seller. This can affect your ability to secure financing and meet the contract terms.
        • Intended Use: If you plan to use the property for a different purpose than originally stated (like converting residential property into a business space), you should disclose this change to the seller.
        • Marital Status Changes: Getting married or divorced during the process can create extra documentation or persons attending closing.  Make sure to disclose any information prior to closing so the correct paperwork can be prepared.
        • Contingencies: If you have specific contingencies or requirements that could impact the sale (such as the sale of your current home or the need for specific repairs), disclose these to the seller.


How to Announce Life Changes Effectively

Disclosing life changes can be a delicate matter. Here are some tips for announcing life changes before closing in a way that is professional and respectful:

        • Timing is Key: Disclose changes as early as possible in the process. This allows everyone to make informed decisions from the beginning.
        • Use Your Agent: Work closely with your closing or real estate agent to communicate life changes. They can help facilitate the conversation and guide when and how to disclose sensitive information.
        • Be Honest and Transparent: When discussing life changes, be honest and transparent about the circumstances. Provide any necessary documentation to support your disclosure.
        • Respect Your Own Privacy: While disclosure is important, respect your privacy and that of any involved parties. You don’t need to divulge personal details unrelated to the sale.
        • Consult Legal Counsel: If you’re uncertain whether a particular life change should be disclosed, consult with legal counsel or a real estate attorney who can provide guidance specific to your situation and local regulations.


Announcing life changes before closing is a legal and ethical responsibility and a practice that promotes trust and transparency in real estate transactions. Both buyers and sellers should carefully consider what life changes may impact the sale and work closely with their real estate agent to communicate these changes effectively. By doing so, they can help ensure a smooth and positive experience for all parties involved.