| When a home buyer takes the home seller to court, | | | | provided to the buyer. |
| claiming non disclosures, the attorneys for the buyer | | | | - When it comes to disclosing neighborhood noise |
| will paint this picture of the seller and his agent, and the | | | | problems or other nuisances, do not be shy, if you do |
| home inspector, and everybody else getting together | | | | not disclose that the area has problems with airport |
| and plotting their strategy to hide problems with the | | | | noises, or garbage odors from a nearby dump for |
| house from the buyer. They will use ugly words like | | | | example, not only would the new owners of the house |
| Deceit, Gross Misrepresentation, Fraud, etc, to describe | | | | will find that out within days of moving in, your friendly |
| what you did or did not write in your disclosures. The | | | | neighbors will spill the beans just as they greet the |
| new buyers will swear that they would have NOT | | | | new owners with a courtesy visit to welcome them |
| bought this house had they known the many "defects" | | | | into the area. |
| it had. | | | | - Always make sure that you get a copy of your |
| Your Realtor can provide you the right forms, but it is | | | | disclosures signed and dated by the buyers BEFORE |
| up to you to fill them out, completely, truthfully and | | | | ESCROW CLOSES. These signed documents are |
| seriously. If you want to keep your money and stay | | | | YOUR protection against future liability. Keep those |
| out of court, follow these simple steps with care: | | | | papers with you for many years. Here in California, |
| - Spend time looking over the Real Estate Transfer | | | | they can still sue you 5 years after you sold them the |
| Disclosure Statements and make sure you understand | | | | house. |
| every question before you answer it. The questions in | | | | Buyers do not like to be surprised by material facts |
| these forms are geared towards making sure you do | | | | that they did not know. In my office, every transaction |
| not miss anything important. Keep in mind that there will | | | | has at the end a file that contains at least 30 different |
| be a lot of people reading what you wrote: the home | | | | documents of disclosures.In my 25+ years as a |
| buyers, the Realtors, attorneys... even the judge! | | | | Professional Realtor, I have had to accompany once, |
| - Make sure you use the most updated forms | | | | one of my clients, a home seller to a lawsuit regarding |
| available for these disclosures. There are changes to | | | | the answers he gave to a question in the Disclosures |
| these documents every year, those changes are | | | | that read: Are you aware of any problems with the |
| prompted by the new court decisions of the most | | | | house before or during your ownership? He answered: |
| recent cases. There are thousands of dollars awarded | | | | NO. The key word here was: before |
| to "injured parties" and their attorneys every year | | | | The previous owners had disclosed to him that the |
| because these disclosures were not filled out properly. | | | | house has had a problem with the foundations when it |
| One check mark in the wrong box could spell trouble. | | | | was being built... 35 years before! The result of that |
| - Do not allow anyone to fill them out for you, not the | | | | problem was that the foundation was straighten better |
| Realtor, or your children or anyone else who is not on | | | | than any other home in the area, and the previous |
| title. These are legal documents, that will protect you in | | | | owner nor my client ever had a problem while they |
| the future. Even if you know the buyer is a "friend" | | | | lived there. The buyer, however, sued him for non |
| who you think you know. You still be treated as a | | | | disclosure, after 2 years of depositions, thousands of |
| "defendant" if he sues you. | | | | dollars in lawyers fees, and countless sleepless nights, |
| - Tell the buyer everything you know about the house, | | | | the arbitrator awarded the buyers $120,000. Which |
| specially if you are the typical DIY (Do It Yourself) type | | | | they used to upgrade the entire house, because there |
| of guy/gal. The rule is simple: "If in doubt, disclose it." A | | | | was nothing wrong with the foundation. The legal fees |
| disclosure should be written in a clear and specific | | | | for both parties were paid by the home seller. |
| way: "... In 1997 there was a leak under the kitchen. We | | | | But how did the new owner knew? The neighbor |
| called ABC Plumbing and they fixed it" or "... around | | | | across the street come to greet the new owners, and |
| 2002 during El Nino rains, the basement flooded, a | | | | as they unloaded their belongings, she told them the |
| sump pump was installed by a plumber" | | | | history of the house, and how the foundation gave |
| - If you did not file for permits for any additions or | | | | way, and how it was fixed. The new buyers felt they |
| modifications you made to the house, disclose that | | | | should have been told, consulted an attorney who |
| fact very clearly. These types of additions or structural | | | | made a case and got some money from the seller. As |
| modifications without the proper permits, if not done | | | | you can see, you do not have to necessarily do |
| correctly can put the new occupants of the house at | | | | anything wrong, all you have to do to get into legal |
| risk if they do not know. | | | | trouble is to not pay attention when filling out The Real |
| - I always suggest to my sellers/clients order a home | | | | Estate Transfer Disclosure Statements. Since then I |
| and a pest control inspection before we put the house | | | | ask all my clients to read very carefully every single |
| on the market. These reports, when provided to the | | | | question and understand it clearly before giving an |
| buyer, do not only offer a professional opinion, but also | | | | answer. |
| act as additional disclosures that you, the seller, | | | | |