Skip to main content

Do Old Property Reports Have To Be Disclosed?

Any real estate transaction contains lots of paperwork, much of which are disclosures. A “disclosure” is a fact about a property. A property seller has an affirmative duty to disclose anything and everything that they know about the home and neighborhood. In case you are wondering, there is really no standard of reasonableness for disclosures – if you are convinced your home for sale is haunted, disclose it. Your buyers will probably buy it anyway.
So if a seller has property condition reports on their home from when they bought it 20 years ago, those reports must be given to the buyer, too, right? (Yes, some home sellers keep absolutely every piece of paper for every single little thing involving their house, no matter how old it is.) Ethically, yes. Legally, no.
And do agents have to disclose that there may be old reports on the home? Same answer.
Surprising, right?
Here is the “how and why” of the legal part. Contractual legalese in almost all states says the seller only discloses “known, material facts” and does not need to disclose specific, older reports. The key word here is “known.” Does the seller actually know what is in the report and actually know it to be true now? 
Example: an old air conditioner report exists but the air conditioner was subsequently replaced. Also, for agents, the only pertinent facts are ones that the seller currently knows to be true or the agent knows to be true. Because of this, many agencies discourage their agents from even reading old reports. That might sound shady, but here is another example: the seller possesses an old report saying city zoning may be changed in that year. Then the city council votes down zoning changes. There is no need to furnish the city’s report.
However, this is critical: it is incumbent on the house buyer to do all research and investigate all facts that might be important regarding a particular home. Essentially, this means trust, but verify if you are a buyer. Finding facts is your responsibility. Of course, your Realtor can point you to lots of good sources of info about your home. He or she will also make sure you are aware and understand everything that is in the disclosure documents and reports that you receive.
Here is the ethical part.
Home sellers, your buyers will likely find out everything about your property anyway — why risk their wrath? And regardless of what the law says, any litigious person can bring a nuisance lawsuit. If you think something is not “material” or a “fact,” ask your Realtor to consider and clarify it.
Buyers, think twice about getting into a transaction with a seller that appears to withhold information — if they seem to be concealing something, they probably are!
Ali Palacios, ABRMCNETAHS
Realtor
Today's Home Realty
ali.palacios@todayshomerealty.com
Mobile - 832-418-0670
www.ilovehappyclients.com

9119 Hwy 6 S #230-116, Missouri City, TX 77459
Source: http://www.bestrealestateblog.com/old-property-reports-disclosed?m=JnojPGPgYwNqRUqKIeuc

Comments

Popular posts from this blog

‘Tis the Season: 5 Reasons Why Winter is a Great Time to Buy or Sell a Home

‘Tis the Season: 5 Reasons Why Winter is a Great Time to Buy or Sell a Home It’s a common misconception that you shouldn’t try to buy or sell a home during the fall and winter months.  This is generally considered the “offseason” in real estate. Many sellers mistakenly believe that the cold weather will keep buyers away and that no one is looking over the holidays. Unfortunately, many real estate professionals perpetuate this myth by advising their clients to “wait until the spring” to list their home.  The truth is, homes are bought and sold year round. And while the market is typically quieter during the fall and winter, savvy buyers and sellers know how to use this slow down to their advantage. In fact, depending on your circumstances, now may be the  ideal  time for you to purchase or list a home. If you’re in the market to buy or sell, there’s no need to wait for the spring. Read on to discover the top five reasons that it can pay to buy or sell a home durin

4 Signs It’s Time To Find A New Real Estate Agent

Buying or selling a home is a huge life event, and your real estate agent is the most important person you’ll work with during the transition. A great real estate agent is an invaluable resource; they can help break down complex real estate concepts, walk you through the logistics of buying or selling a home and can help move the process along, saving you time, money and energy in the process. But unfortunately, not all real estate agents are created equal. And while a great real estate agent can make the buying or selling process a breeze, the wrong agent can leave you feeling frustrated with a far too long, expensive and overwhelming real estate experience. Here are four signs it’s time to cut your current agent loose and find a new real estate agent: 1. You just don’t vibe Just because a real estate agent is competent and capable of helping you buy or sell your home doesn’t mean they’re the right agent for you. Sometimes, no matter how experienced or skilled they are

Are Investment Rentals Right For You?

When thinking about investments and retirement goals, many people think about owning rental properties. After all, they pay for themselves, right? They can be excellent additions to a savings and investment portfolio, but there are also risks. Here are the things to consider. First off, the good news If you are considering purchasing a rental property, just about all of your expenses are tax deductible (unless you rent to family members). Your mortgage loan interest, property taxes, and maintenance expenses are all allowable deductions. Your accountant may find other deductions for you as well, such as a 27-year depreciation rule. Now for the risks Many areas are too expensive for rental investments. You will want to know that your monthly cash flow from the property meets or exceeds your expenses. In pricey locations, you may wind up upside-down and spending more each month than you are taking in. Believe it or not, prior to the Great Recession, many investors did not worry