While everyone is home trying to stay healthy, there are a lot of people who have taken to trying to do things around the house on their own. This has helped homeowners keep busy when they have
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, do those reports must be given to the buyer?? (Yes, some home sellers keep absolutely every piece of paper for every single little thing involving their house, no matter how old it is.) The answer is this...Ethically, yes. Legally, no.
do agents have to disclose that there may be old reports on the home? Same answer.
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?
For 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. 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 the information provided by a seller, but verify everything on your own. Finding facts is your responsibility. Of course, your Realtor can point you to lots of good sources of info about your home. They will also make sure that 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? 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!
GroupWatson understands the local market and can counsel you regarding the many facets of the real estate transaction. Whether Buying or Selling, we are always here for our clients.
Scott and Tammy Watson are the Owners and Team Leads for GroupWatson, Keller Williams. With 47 years of combined real estate experience, a "Client First Philosophy" is exemplified by providing excepti....