We are in total agreement with you....because the property is being offered "AS IS" should not allow the selling parties to feel they can exploit people. I have seen the same thing done in your location done with regards to "Chinese drywall." It just isn't right!
Any one willing to conduct business in this manner should be exposed and avoided.
Michael Saunders & Company
YES, when listing agents become aware of defects in the property they must be disclosed. The situation is much easier to handle with traditional sales since the owner completes the disclosure. But when it comes to Bank Owned foreclosures they disclose having no knowledge since they have never seen the property, that is when getting a reliable home inspector is imperative. I have seen foreclosure listing agents ask for the inspectors report in order to cancel an contract, but I have also seen a few say....we don't need to "see anything", just fax in the cancellation. So as a buyer, protect yourself.
Charles Rutenberg Realty
Please see my blog for tips and advice on buying bank owned homes.
Disclosure of any defects that materially effect the value of a property are to be DISCLOSED by the SELLER. The seller has the obligation to disclose any and everything, even if it was fixed like a leak, or a termite problem.
A listing agent may NOT be aware of issues that are disclosed. HOWEVER, in the example you give, a defect was brought forward by your inspection. YES that would need to be disclosed in writing along with the remedy if any to a future buyer.
Are you sure it was relisted without disclosing? It would be in the sellers property disclosure that SHOULD be given to any buyer before writing a contract.
By the way, listing agents are like any other professional...there are good ones and some that still need a little work to be good.
You learned a valuable lesson here....hopefully buyers reading this will also learn to:
ASK FOR THE SELLERS PROPERTY DISCLOSURE BEFORE WRITING AN OFFER. For one thing, you may want to put repair provisions in the offer.
When we list a property, we attach the sellers property disclosure, the property tax record and the customer of the MLS along with a photo flyer all together and have these "packages" available to buyers when they look at the house. You can not give a potential buyer TOO MUCH Information on a property they are considering.
Debbie Albert, PA
Keller Williams of the Treasure Coast
State laws vary, and I'm not licensed in FL, so it could be different, but in most places I'm aware of Agents are required to disclose any material defects inherent in a property. I would suspect a failed septic would fall under this category. Did you receive any sort of disclosure regarding the home? In some cases, like bank owned homes they may be exempt from completing a disclosure form since they never lived in the house, but I still believe an agent would be required to disclose this as a material fact if they knew.
What does your agent say? If you can prove the listing agent had prior knowledge and didn't reveal this to you prior to writing your offer it may be worth discussing the matter with them and their broker. Your agent should be the one to start this process.
Ask your agent to see if the house was ever "pending" sale prior to your contract. If so, the agent may have been aware of the defect and did not disclose if a prior buyer backed out for the same reasonI hope that isn't the case but ask your agent to check the history on the MLS system. If it was pending sale, you may have a case against the agent and may be able to get your inspection costs back! I'm not an attorney so you'll need to check with an attorney. You could also go it alone in Small Claims court.
Best of luck and if you pursue another bank owned listing, maybe it's a good idea to put a request "in writing" via email/fax to the listing agent that you would like to see any/all inspection reports.
Best of luck,
You make a very good point. This is a very popular question from buyers and R.E. agents.
The short answer is yes they should disclose.
The longer version is we have never experienced a market with so many foreclosures.
In the past foreclosures were mostly purchased by investors and when you invest there is risk.
Today traditional purchasers of homes, like yourself, want investor pricing and assurances from the seller.
That will not happen.
The best thing for a buyer to do is try to find an owner/seller who is willing to sell their home at a reduced price. This home should be well maintained and fully disclosed.
In the long run you could actually get a better overall value.
Coldwell Banker Camelot Realty
Mount Dora, FL 32757
I like to think that agents are doing their jobs, but even if he or she did not I hope that you will not judge the basket by one bad apple.
Typically, when a bank, lender or almost any other 3rd party sells a property- they sell "as-is" ~ the reasons are several... primarily, it is because they (THE LENDER) have never occupied nor even seen the property.
In more cases than not- malicious damage is done to the home or apartment. I've seem kitchens tore up from the floor up, walls destroyed, appliances removed, lavatories removed and the property in shambles.
WATERWAY REALTY, REALTORSÂ®
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