Property Report
Definition and meaning of Property Report in real estate.
A property report is a formal disclosure document that developers must file with the government and provide to prospective buyers when selling subdivided land or timeshares.
In more detail
Under federal laws, particularly the Interstate Land Sales Full Disclosure Act, and various state laws, developers of certain subdivisions must disclose key details about the land. The report contains crucial details regarding soil conditions, title status, existing liens, utility availability, and distance to nearby communities.
Requirements for these reports can vary by state, but buyers are generally entitled to receive and review the document before signing a contract. If a developer fails to provide this report, the buyer may have a legal right to cancel the contract.
Key facts
| Category | Legal, Titles & Closing |
|---|---|
| Required by | Interstate Land Sales Full Disclosure Act |
| Major focus | Infrastructure and title disclosures |
| Buyer benefit | Right to cancel if not provided |
An investor interested in buying a vacant lot in a new lakeside subdivision receives a property report detailing that the local utility company has not yet run electrical lines to the parcel.
Frequently asked questions
Who is required to provide a property report?
Developers selling subdivided land, usually consisting of a large number of lots, or timeshares across state lines are legally required to provide this report to prospective buyers.
What information does a property report typically exclude?
A property report focuses on physical characteristics and infrastructure of the land, meaning it does not typically guarantee the future value of the property or the financial success of the development.