Although rules vary from state to state, you should disclose if you believe your house to be haunted or know of any paranormal activity inside. You have a few options, and should pick your course of action based on what makes the most sense for you financially and for your local real estate market. Many of the problems listed on disclosure forms can be found if the buyer elects to do a home inspection. Leaky pipes (and resulting water damage), failing water heaters, and sewer system problems are some of the most expensive. Category: Blog, California, Home Inspections & Warranties, Legal Updates, CRES A Gallagher Affinity Division | License #0D69293 | Copyright © 2020. Edit: I just reread your original post. Some buyers may have concerns or superstitions about purchasing a home in which someone has died, so it’s important to know if your state requires sellers to disclose … Almost all buyers request a home inspection when they submit an offer on a house. : Failing window seals, windows and doors that don’t open and close properly, or broken panes are commonly found by inspectors. Does my buyer have to turn over his inspection report to the seller when requesting repairs? Please seek the services of a legal, accounting or real estate professional prior to any real estate transaction. The buyer may request a credit (also called a concession), in an amount that’s enough to cover the repairs. Purchasing a home warranty for the buyer can be a nice olive branch to offer. In Gilbert v. Corlett (1959) 171 Cal. Buyers shouldn’t expect the house to be flawless. The inspector discovers surface bio-growth (aka Mold), Vermiculite insulation containing Asbestos, and many electrical hazards in the attic space and the buyer wonders why the seller didn’t disclose these issues. This is especially appealing for inspection findings that aren’t necessarily failing items, but aging systems that will need to be replaced within the next few years. After all, among sellers who had a sale fall through. About the Author . What Makes a Good Real Estate Agent for Home Sellers, How to Sell a House As-Is When It Needs Repairs. Sunderland | McCutchan, LLP. A seller's duty to disclose his knowledge of defects does not end when he completes a written Seller Disclosure Notice during the listing appointment. In such a situation, the maker of the third-party report who desires to limit its disclosure to no one other than the person who requested and paid for the report is not in a contract with any other person to prevent the report’s disclosure in a real estate transaction. The seller’s representative doesn’t have to disclose patent defects to you, as these items can be found during a home inspection or are visible to the potential buyer’s eye. Despite the fact that disclosing in writing to a potential buyer a prior third-party expert report of the property being listed on the market, California law under Civil Code section 1102.1 requires the disclosure of all prior reports on a parcel to potential third-party buyers before close of escrow. Although the seller made good and paid for the mold removal — a $1,500 cost — the Supplees could have taken them to court for not disclosing the problem before the sale. Their job is simply to inspect and report their findings, and then let the buyer come to their own conclusion. Over the years, I frequently come across risk management inquiries involving whether a seller and his or her listing agent need to disclose prior property inspection reports of the property being listed for sale. Thank you. It’s up to you to do your own research and ask specific questions. For those new to selling real estate, here’s a sample inspection report that will give you a clear idea of what a residential inspection will cover. A Realtor®’s and Seller’s Duty to Disclose All Prior Inspection Reports on a Listed Property, The National Association of REALTORS® recently warned real estate agents about the risks of Legionella bacteria in…, Realtors®, with a CRES Qualified Home Warranty from Fidelity National, your sellers will enjoy 13 Months of coverag…, Insurance Checklist for Real Estate Offices, The Dangers of Legionella: Assessing Safety Risks for Recently Opened Buildings, 7 Tips to Keep Your Agents Motivated During Slow Sales Periods, What to Do When Buyers Discover Post-Closing Issues, Selling a Home Where There’s an Active Neighbor Dispute. That the property may be in a special taxing district, and where the buyer can go to find out whether the property is, in fact, within such a district (Colorado Revised Statutes Annotated “C.R.S.A.” § 38-35.7-101). You can always offer to barter with other items, like furniture that wasn’t originally included but the buyer might want, or appliances you weren’t planning on leaving behind. Reasonable buyers will understand that no home is perfect — not even new construction. In some cases, it may make sense to consult with your agent and weigh the pros and cons of the costs of repairs versus letting the buyer walk and. The Legislature did not intend to affect the existing obligations of the parties to a real estate contract, or their agents, to disclose any fact materially affecting the value and desirability of the property, including, but not limited to, the physical conditions of the property and previously received reports of physical inspections noted on the disclosure form set forth in Section 1102.6 or 1102.6a, and that nothing in this article shall be construed to change the duty of a real estate broker or salesperson pursuant to Section 2079.