A deposit could be forfeited by the buyers under certain circumstances, such as the buyers backing out for a reason not provided for in the contract. The purchase contract must include the sellers responsibilities such things as passing clear title, maintaining the property in its present condition until closing and making any agreed upon repairs to the property. It varies from state to state. The seller is required to disclose all facts materially affecting the value or desirability of the property which are known or accessible only to him and which are not known to, or within reach of the diligent attention and observation of the buyer. In the case of residential properties, the seller must provide the buyer with a Disclosure Statement, which specifies the existence and condition of all known physical attributes of the property.
Sellers are responsible for disclosing only information within their personal knowledge.
They don't have to hire professionals to answer the questions on the disclosure form, in general. However, sellers must fill out the form in good faith. People considering a foreclosure property would want to contact the lender directly first and obtain as much information as possible regarding what range of bids are being sought. Pivar says to explain that you will be bidding on the property and ask the neighbors if they had been in the house and when, as well as the general condition at the time of their visit. Individuals also can do their own cost comparison through researching public records kept at the local county recorder's and assessor's offices.