Those Pesky Disclosure Laws…

A Realtor I know very well just listed a home in an older neighborhood. The sellers, 2 siblings, did not live in the home; it was the home of their deceased parents that the sibs are preparing to sell. This agent, we’ll call him Hank, was discussing the disclosures with his sellers. Sibling A wanted to disclose water damage that he knew his parents had issues with and had done costly repairs. Sibling B wanted to check every single box “No” on the disclosures. Why? He felt it would freak out potential buyers to know that the home had a history of water issues, and besides, Hank the Realtor was only concerned with protecting his own interests by disclosing. Excuse Me?? Ever hear of a little word called litigation? Attorneys LOVE the litigious real estate climate that is California.

As a Realtor, one of my primary goals as an agent to the transaction is to protect my clients from being sued someday by a party of the transaction. When representing the sellers, I counsel them to disclose any and all issues that may or may not be a material fact. Better to disclose too much than overlook something that could come back and bite us all. When representing buyers, I work to help them learn as much as possible about the history of the home, through seller disclosures, natural hazard reports, and inspections. I’ve even visited neighboring homes to inquire what the neighbors know about the property.

When all is said and done, it is important to remember that no house is perfect. Every home has “issues” and things break down over time. Get your inspections, and ask lots of questions! Be proactive in learning about the history of the home. If you do your part, I will do mine, and we can all get along (and not get sued!).