A long time ago, real estate was sold under the idea of “buyer beware.” This meant that the seller didn’t have to disclose anything, and the burden was on the buyer to find out what was wrong with the property. We’ve come a long way since then, and there are now legal requirements for sellers of property to disclose any material defects or facts that affect the value of the property if the seller has: #1. Actual knowledge of and/or #2. Should have known about these issues. We have many pages of questions that help jog seller’s memories about past water leaks, neighborhood noise problems, issues with settling, etc.
There was a recent court case that ruled that the seller had to have had actual knowledge of the problem, not just that they should have known about it. This is a pretty big shift in the burden from seller back to the buyer if this becomes a new legal precedent.
What this means to you if you are a buyer—Do your due diligence. Get your inspections. Talk to neighbors. Visit the property multiple times. Go talk to the City/County offices if there are ANY concerns about zoning, permits, etc. (you will probably need to get the seller’s approval to ask specific questions about their property).
What this means to you if you are a seller—I still advise my seller clients to disclose anything and everything that may be of interest to the buyer. This new court case does NOT mean you are “off the hook” for disclosing questionable items. If you even ask, “Should we disclose ‘X’?” that means you probably should. Better to disclose ahead of time and have the buyer potentially cancel then deal with a lawsuit later.
I AM NOT AN ATTORNEY. CONSULT A LEGAL EXPERT FOR YOUR SITUATION. If you have questions on any other real estate topic, call me at (925) 240-MOVE (6683). Voted “Best of Brentwood” multiple times. To search the MLS for free and view virtual tours of homes for sale, go to: www.SharpHomesOnline.com. Sharp Realty.