Real Estate Disclosures
Dear Phyllis,
Reading your weekly questions and answers, I encountered a question on real estate disclosures. I am in the midst of selling a home in Glendale. I acquired this property through foreclosure, and it has always been a rental, I have never lived there. In my listing contract, I noted: “Home sold as is, with no seller repairs or warranties”. This was also reiterated to the buyer in their counter offer.
Once we opened escrow, my Realtor gave me a stack of real estate disclosures with a lot of questions that he told me I must answer. I don’t know most of the answers and don’t understand how I can be expected to provide the answers when I am not that familiar with the home. Bill T.
Dear Bill,
As a real estate agent, I often feel frustrated by the volume of paperwork. Much of it feels redundant. However, you must complete these disclosures by law.
I am not a real estate attorney. Still, my experience as a Realtor suggests a simple approach. First, clearly state on the disclosures that you have never occupied the home. The purpose of these forms is to disclose any known material facts or defects. If you know of an issue, disclose it. For example, if you noticed a leak during a visit, you must report it. However, if you do not know an answer, write “unknown.” You do not need to investigate or act like a detective.
Next, organize your documentation. If you recently completed repairs, include the invoices. In addition, give them to your real estate agent. They can prepare a “Receipt for Reports” and attach copies. Also, disclose any recent estimates if you chose not to complete the work. Include those in the same Receipt for Reports. Finally, disclose tenant issues when applicable. For example, note complaints such as rodent infestations. This keeps your disclosure complete and transparent.
Best of luck on your sale.
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