The Importance of Disclosure

When we meet to place your property on the market, in addition to signing a listing agreement, we will give you several important disclosure statements to complete.

Sellers are required by law to disclose facts which materially affect the value or desirability of their property. The Real Estate Transfer Disclosure Statement, and other disclosure forms, help a seller meet this requirement by providing a standardized format for the information.

Few people enjoy, or can afford, unexpected problems. Problem conditions made known to buyers before the purchase are often easier to accept, and can be handled right up front.

If you know about a problem, but don’t fully disclose it, the buyer may be able to rescind the purchase and recover monetary damages. Full disclosure can reduce or eliminate the possibility of a later legal action.

Be aware that selling “as-is” does not release the seller from the duty to disclose. In a Court of Appeal decision, Loughrin vs. Superior Court, the appeals court held that a sale “as-is” does not absolve sellers from liability if they negligently misrepresent or conceal material facts regarding the property.

The court stated the “contrary to the apparent assumptions of many people dealing in real estate (including some brokers), a sale “as is” is not the equivalent of a waiver of potential claims of misrepresentation.” Basically, the court reasoned that even a detailed “as-is” disclaimer did not address the issues of misrepresentation, concealment, or negligence. The “as is” sale simply means the buyer accepts the property in the condition visible or observable by him.

Simply “overlooking” some fact about your property’s condition could be construed by a court as negligent concealment.

Carefully consider your answers on all of the disclosure forms. Give detailed answers. Use extra sheets if necessary. Previous problems should be disclosed, even if you believe the problem has been fixed.

Do you have copies of invoices for repairs, improvements, and alterations made to the property during your ownership? Make copies of them to attach to your disclosure. Copies of plans, permits, and other related documents should also be included with your disclosure statement.

In addition to your written disclosures, professional inspections are also highly recommended. We will encourage your prospective buyer to obtain a professional physical inspection. The professional physical inspection is usually scheduled to take place within a few days after you and the buyer have reached mutual agreement on price and terms. You will need to make your property accessible for all contracted inspections.

Would you like to know more?  Call Bob Taylor Properties at 323-257-1080 or email at bobtaylorproperty@gmail.com