Home Buying in 60622>Question Details

Snowpeache, Home Buyer in 60622

My daughter is buying an estate sale house. The agent told her there is no disclosure statement required in an estate sale. Is this true?

Asked by Snowpeache, 60622 Sat Sep 24, 2011

We live in Georgia.

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Answers

15
In addition to the answers provided here, she may have been required to make an as-is offer with right to inspect, or sign an an as-is with right to inspect addendum, depending on the state.

In this instance, your daughter can still have the property inspected, and withdraw her offer if the inspection reveals any latent material defects.

Best regards,
David Barr, Broker Associate
Sandals Realty
941.870.0656 direct david@davidbarrhomes.com
0 votes Thank Flag Link Wed Sep 28, 2011
Yes - this is correct.. It is also true when buying foreclosures and HUD homes.
0 votes Thank Flag Link Mon Sep 26, 2011
According to the law in Illinois - yes - estates are except from disclosures. Mostly because the sellers are likely to not have lived in the property for the past 12 months and really can not attest to what is or is not wrong with it and have no knowledge, as is the standard for the disclosures. I always think it is a good idea, though. However, a disclosure is never a replacement for an inspection. You should always do an inspection so your eyes are wide open on what you are buying.
0 votes Thank Flag Link Mon Sep 26, 2011
I'm a broker in the Chicago area.
We use disclosures.
Our disclosures are: Mold, Radon, Property, Lead Base Paint, Wood Destroying Insects.
Not all are mandatory.
Unless the executor of the estate also lived in the home, he/she will have no knowledge of property condition. This doesn't preclude disclosures. For example, in our 23 question Property disclosure, the first question asks if the seller has lived in the home during the past 12 months. A lender will most likely insist on at least some disclosures even if they indicate no knowledge. Also, we use attorneys in this part of Illinois for real estate transactions. Find a good real estate attorney. Costs are approximately $450 in suburbs, and upward from that in Chicago proper.
Hope this helps.
0 votes Thank Flag Link Sun Sep 25, 2011
I recently marketed an estate sale and had the family member disposing of the asset state on the Sellers Disclosure that she had no direct knowledge about the property. That is the bottom line - the person that has the knowledge is gone - so you are operating with the added uncertainty/risk that comes from the absece of that knowledge. And yes, based on my experience, this is standard for an estate sale.

Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Sun Sep 25, 2011
This is a common question we're asked in person, SP.

There's a lot to think about when buying a home, and one of the things we tend to focus on is, what are the seller's disclosures?

With an estate sale, the Seller isn't around to make those disclosures. The people who are left behind can't be expected to know much about the property, although I think in every state the broker or listing agent is obliged to disclose any hidden defects they are privy to. For example, if the agent was meeting with the seller before their death, the agent might have learned that there was a fire behind the wall that was patched over, that sort of thing.

All the best,
0 votes Thank Flag Link Sun Sep 25, 2011
the "no knowledge" disclosure is required ... get the inspection done before attorney approval closes and you can walk away even if its an as-is deal- be up front however.. tell them your doing an inspection with no repairs implied
Web Reference: http://www.joeschiller.net
0 votes Thank Flag Link Sun Sep 25, 2011
In massachusestts there is no disclosure statement required for any property. When we list a home we do like to get one, but is for our protection as much as anyone elses. A disclosure statement is nice to have, but should not replace a home inspection. Rely on what your inspector says.
0 votes Thank Flag Link Sun Sep 25, 2011
With an "estate sale" it's likely that family members never having lived in the home and not having any first hand information about the property would be saddled with the task of disposing of the property.

Under these circumstances, how do you obtain an accurate "seller's property disclosure" if the previous owner is deceased or incompetent?
0 votes Thank Flag Link Sun Sep 25, 2011
No in the state of Illinois a property disclosure is required by law. It probably is an As Is sale, but a property disclosure must be provided.
Web Reference: http://AmericorpRe.com
0 votes Thank Flag Link Sat Sep 24, 2011
The whole IDEA behind a DISCLOSURE STATEMENT is to tell about things that you are aware of:
In the case of a Bank or an Absentee Owner, they have no direct knowledge of the property.
If they state this, and then it turns out that they lived there, knew first-hand about the property, then they would still be liable.
They have to submit the form, stateing that they have no knowledge.
0 votes Thank Flag Link Sat Sep 24, 2011
The heirs need to supply you with a disclosure,however the first question on the disclosure is have you lived in the home in the last 12 months if the answer is no the rest of the answers to the rest of the questions are just guess work. The best protection is a home inspection by a certified home inspector. Your realtor should be able to supply with a choice of certified inspectors. Debbie Bergthold-Smith Classic Real Estate
708-267-5552
0 votes Thank Flag Link Sat Sep 24, 2011
Not true. There must be a disclosure given although it would be pretty worthless since the heirs probably have no idea about any potential 'issues'. Do an inspection.
0 votes Thank Flag Link Sat Sep 24, 2011
In Illinois you have to disclose, even if you don't know, you have to disclose that too
0 votes Thank Flag Link Sat Sep 24, 2011
Hi Snowpeachee

Here in Connecticut, disclosures are not required for an estate sale. Might be the same case in GA?

Best.

Maria
0 votes Thank Flag Link Sat Sep 24, 2011
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