Long Gone Buyer Beware - Except in Foreclosed Properties
May 27, 2009
It seems that the traditional seller has a plethora of disclosure documents to complete and to furnish to the potential buyer of the property. It also seems that banks that have foreclosed on a property, are not subject to same standard of disclosure.
Some of the difference is understandable. The lender in many cases has never seen the property and relies upon an asset manager or a real estate agent to take pictures and to assess the condition of the property. In foreclosures, it is important that the potential purchaser hire a qualified property inspector. Possibly it is even wise to hire specialists such as licensed plumbers, heating and air conditioning professionals and structural pest control technicians. In the instance of a bank-owned property is is back to the "buyer beware" sale. The strapping of the water heater and the working smoke detectors are applicable to all sales, even bank-owned.
Traditional sellers, investor owners, and short sale owners are by law required to make disclosures as to the condition of the property using a statute mandated Sellers Transfer Disclosure form. Additionally most real estate agents also require their sellers to complete a Property Disclosure and a Supplemental Disclosure form.
In all transactions in which real estate agents are involved, the law requires the agent to do a "reasonably diligent visual inspection" and to submit their results of this inspection in writing.
In spite of all the efforts for full disclosure, it does seem that purchasers rely most heavily on the professional property inspection report. Going over this report with the inspector and the agent will often be the best description as to the condition of the property. Houses are rarely perfect and without some defects, but knowing what a buyer is buying is the standard for the sale of real estate.
It seems that the traditional seller has a plethora of disclosure documents to complete and to furnish to the potential buyer of the property. It also seems that banks that have foreclosed on a property, are not subject to same standard of disclosure.
Some of the difference is understandable. The lender in many cases has never seen the property and relies upon an asset manager or a real estate agent to take pictures and to assess the condition of the property. In foreclosures, it is important that the potential purchaser hire a qualified property inspector. Possibly it is even wise to hire specialists such as licensed plumbers, heating and air conditioning professionals and structural pest control technicians. In the instance of a bank-owned property is is back to the "buyer beware" sale. The strapping of the water heater and the working smoke detectors are applicable to all sales, even bank-owned.
Traditional sellers, investor owners, and short sale owners are by law required to make disclosures as to the condition of the property using a statute mandated Sellers Transfer Disclosure form. Additionally most real estate agents also require their sellers to complete a Property Disclosure and a Supplemental Disclosure form.
In all transactions in which real estate agents are involved, the law requires the agent to do a "reasonably diligent visual inspection" and to submit their results of this inspection in writing.
In spite of all the efforts for full disclosure, it does seem that purchasers rely most heavily on the professional property inspection report. Going over this report with the inspector and the agent will often be the best description as to the condition of the property. Houses are rarely perfect and without some defects, but knowing what a buyer is buying is the standard for the sale of real estate.
posted by shirley harry at 9:19 AM
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