Do You Have to Disclose an Inspection Report Today I’m talking about an issue that comes up very frequently in our business, and that issue is the question of whether a seller and the broker who lists that seller’s home is required to pass onto to subsequent buyers an inspection report that was done by … That the property may be in a special taxing district, and where the buyer can go to find out whether the property is, in fact, within such a district (Colorado Revised Statutes Annotated “C.R.S.A.” § 38-35.7-101). You’ll want to prioritize repairs that are a safety concern or legal issue. If you could have identified the repair when you first walked through the home, it’s not a good idea to request the seller fix it after the home inspection. About the Author . Does seller have to disclose inspection? They request a dollar amount they want back as a closing credit, which won’t change the purchase price, but will lower your net profits. Do note that any problems revealed in your pre-inspection have to be disclosed to your buyer. An interesting issue has appeared from time to time where third-party experts have listed conspicuously on their report for a given property that the report absent written consent from this third party expert cannot be disclosed by any person other than the person who paid for the document absent express written consent by the document’s maker to do so. | Privacy Policy | Terms of Use | Licenses by State | Sitemap. A home inspection contingency is an addendum to the offer contract that allows the buyer to conduct an inspection and then back out of the deal if they are unsatisfied with the findings. If you’re working with an agent, it’s best to have them attend on your behalf. In Gilbert v. Corlett (1959) 171 Cal. Usually, the 5-10 business days allowed in the contract includes both conducting the inspection and requesting any repairs in writing. Why Homebuyers Can Walk Away from a Signed Contract. : This is a serious issue, and something you should be especially cautious of if you’re selling an older home. A Realtor®’s and Seller’s Duty to Disclose All Prior Inspection Reports on a Listed Property, The National Association of REALTORS® recently warned real estate agents about the risks of Legionella bacteria in…, Realtors®, with a CRES Qualified Home Warranty from Fidelity National, your sellers will enjoy 13 Months of coverag…, Insurance Checklist for Real Estate Offices, The Dangers of Legionella: Assessing Safety Risks for Recently Opened Buildings, 7 Tips to Keep Your Agents Motivated During Slow Sales Periods, What to Do When Buyers Discover Post-Closing Issues, Selling a Home Where There’s an Active Neighbor Dispute. First, what obligation does a seller have to disclose defects in a house to a buyer? Sunderland | McCutchan, LLP. Please seek the services of a legal, accounting or real estate professional prior to any real estate transaction. It depends on what your buyer requests, the type of repair, and your own skill level. A seller's duty to disclose his knowledge of defects does not end when he completes a written Seller Disclosure Notice during the listing appointment. : Failing window seals, windows and doors that don’t open and close properly, or broken panes are commonly found by inspectors. Depending on the terms of your contract, the buyer may do one of three things after receiving the inspection report on your home: Don’t panic if you receive a bad home inspection. Many contracts have specific requirements related to asbestos and lead paint, so be sure to disclose everything you know. Despite the fact that disclosing in writing to a potential buyer a prior third-party expert report of the property being listed on the market, California law under Civil Code section 1102.1 requires the disclosure of all prior reports on a parcel to potential third-party buyers before close of escrow. Home inspectors have been sued before by sellers who believe a deal falling through was the fault of the home inspector and their incorrect reporting. Their job is simply to inspect and report their findings, and then let the buyer come to their own conclusion. B. Edward McCutchan, Jr. was admitted to the Bar in 1985 and is admitted and qualified to practice in all California courts and the U.S. District Court, Eastern and Northern Districts of California as well as the United States Tax Court. We are continuously working to improve the accessibility of our web experience for everyone, and we welcome feedback and accommodation requests. What does the Residential Real Property Disclosure Act require me to disclose? However, sellers who may be concerned about what might be found in an inspection sometimes opt to. By John Herman Managing Real Estate Broker with Property Up Inc. #471.017853 Email Short URL Share: June 06, 2019 08:39 AM. It is also the intent of the Legislature that the delivery of a real estate transfer disclosure statement may not be waived in an “as is” sale, as held in Loughrin v. Superior Court (1993) 15 Cal. Remember, if a buyer backs out and you re-list, you’re going to have to, You could also add a mention of the repairs to your, Major electrical issues that are safety or code issues, Plumbing, drainage, sewer, septic, or water issues (or well water issues, if applicable), Elevated radon levels (a common issue in homes with basements), Anything under $100 that the buyer can reasonably fix on their own (especially in a sellers market, where buyers shouldn’t want to come off as overly picky), Cosmetic issues, like paint touch-ups or older tiles, Renovations — you’re not responsible for turning the home into your buyer’s dream home, Loose fixtures that can easily be fixed with a few tools, Basement floor cracks that have no structural impact, If you think an inspection might uncover some problems, and you don’t want the hassle of making repairs in order to sell, consider, Types of Listing Agreements: Understanding Real Estate Agent Contracts With Sellers, Real Estate Photography Tips for Home Sellers, For Sale by Owner (FSBO) vs. Real Estate Agent. 2. * About Massachusetts law: Private, individual sellers of residential properties in Massachusetts DO NOT have to voluntarily disclose defects like mold infestation, termites or water leaks. If this is done, the seller should provide both reports to subsequent buyers. Rather, the seller's knowledge encompasses prior inspection reports obtained by prospective buyers. The TAR Seller's Disclosure Notice (TAR 1406) asks the seller to identify and attach copies of previous inspection reports. Thank you. Get a cash offer from Zillow. However, sellers who may be concerned about what might be found in an inspection sometimes opt to pay for their own pre-inspection. Sellers have to have their homes inspected for this purpose if the home was built prior to 1976. After reviewing some basic information about your home, we’ll conduct an in-person evaluation and present you with an offer to buy your house in cash. You can always offer to barter with other items, like furniture that wasn’t originally included but the buyer might want, or appliances you weren’t planning on leaving behind. Although rules vary from state to state, you should disclose if you believe your house to be haunted or know of any paranormal activity inside. Here are some options: Knowing what to do when a home inspection is bad can be tricky. Mr. McCutchan’s practice is primarily civil litigation with an emphasis in defending professionals and businesses in real estate, mortgage brokering, construction, banking and agricultural industries and all phases of dispute resolution through trial and appeal. Court decisions in California for decades make it very clear that sellers (and their real estate agent) have the duty to disclose prior inspection reports on a listed parcel that are in the possession, custody or control of the seller regardless of who initially paid for the report. We have not had a mold inspection done. 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