What should a seller disclose?
January 30, 2007
When listing a property with a licensed real estate agent, a seller will be given a plethora of disclosure forms to complete. Most of these forms are check lists that require only a yes or no answer. However, for every "yes" answer the form will require some explanation. Sellers often ask how much detail is required.
In our litigious society, more is better than less. No matter how trivial the issue might seem to the seller, it might be of great concern to the buyer. A real estate agent should always encourage disclosure.
In an e mail newsletter I received today from Barry Stone at Inman News, he responds to a sellers inquiry: "...Beside our house is a large Dutch elm tree. It is diseased and will probably die in a couple of years....Should we tell them(the buyers) about the tree or just let them enjoy it until it needs to come down?"
Barry's response: "...it is never wise to withhold or abridge real estate disclosure. There are buyers out there who would sue over the loss of a tree with an undisclosed disease. So play it safe and disclose everything you know about the condition of your property....The answer to all disclosure uncertainties consists of three simple words: disclose, disclose, disclose. Allowing one exception to this basic rule invites further exceptions. It is a slippery slope that leads to costly liability...."
The California Association of Realtors has developed very detailed questionaires to aid sellers in making a complete disclosure. It is always our goal to assist a seller in reducing non-disclosure liability.
When listing a property with a licensed real estate agent, a seller will be given a plethora of disclosure forms to complete. Most of these forms are check lists that require only a yes or no answer. However, for every "yes" answer the form will require some explanation. Sellers often ask how much detail is required.
In our litigious society, more is better than less. No matter how trivial the issue might seem to the seller, it might be of great concern to the buyer. A real estate agent should always encourage disclosure.
In an e mail newsletter I received today from Barry Stone at Inman News, he responds to a sellers inquiry: "...Beside our house is a large Dutch elm tree. It is diseased and will probably die in a couple of years....Should we tell them(the buyers) about the tree or just let them enjoy it until it needs to come down?"
Barry's response: "...it is never wise to withhold or abridge real estate disclosure. There are buyers out there who would sue over the loss of a tree with an undisclosed disease. So play it safe and disclose everything you know about the condition of your property....The answer to all disclosure uncertainties consists of three simple words: disclose, disclose, disclose. Allowing one exception to this basic rule invites further exceptions. It is a slippery slope that leads to costly liability...."
The California Association of Realtors has developed very detailed questionaires to aid sellers in making a complete disclosure. It is always our goal to assist a seller in reducing non-disclosure liability.
posted by shirley harry at 9:04 AM
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