Home Buying in 94110>Question Details

Janet Nees, Renter in San Diego, CA

Potential buyers cancelled because of extensive termite work that needs to be done. Must we disclose this report if all repairs have been made?

Asked by Janet Nees, San Diego, CA Mon Apr 1, 2013

One termite company gave us a huge quote to repair and tent. Another company gave us a more reasonable quote and we are making repairs and will get a new report. Do we have to disclose both termite reports to new buyers?

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Irina Karan’s answer
You need to disclose the termite damage and that you took care of the issue both.
Show the invoices/warranties on work done.

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
0 votes Thank Flag Link Wed Oct 30, 2013
Yes, you must disclose both termite reports.
1 vote Thank Flag Link Tue Apr 2, 2013

The criteria everyone should use when asking "should I disclose" is do you think it might affect the material value of the property in the eyes (perception) of the buyer.

It is actually easier to always answer the querstion "Should I disclose?" with the simple one word YES.

The failure to disclose a known issue that could have affected the value placed on the property by the buyer is criminal fraud at worst and inviting a lawsuit at least.

Disclose both reports and show the repairs and clearance report and you should be able to get the highest value the market will allow for this property.
1 vote Thank Flag Link Tue Apr 2, 2013
Jed Lane, Real Estate Pro in San Francisco, CA
The single most important rule in selling real estate is "disclose, disclose, disclose."
The more up front you are with everything you know about the property the better protected you are from potential post closing problems.
0 votes Thank Flag Link Thu Nov 14, 2013
Yes and yes. What you could do is have the items on the pest reports cleared and get a completion card/certification from the BDI.
0 votes Thank Flag Link Thu Apr 4, 2013
Please disclose all material facts you know about the home.

Disclose report and provide evidence of repair completion.

Failure to do so, may cause headaches down the road. Put yourself in the buyer's shoes. What would you want the seller to do if the facts were the same except you were the buyer?

Best of luck to you!!!
Kawain Payne, Realtor
0 votes Thank Flag Link Mon Apr 1, 2013
Dear Janet ... and Sorry Roland....

The one and only answer is yes. If the reports have been made, either have the orignal company come back and do a second inspection or have a written inspection from the company that did the repairs. They should "clear" all the outstanding problems. It does not matter if you get someone to fix who is less expensive. The key is did they do a good job.

Get it in writing so you are covered if the work is not done completely or correctly. The company that fixed your termite/dry rot problems will be responsible. Read the small print and talk to a lawyer to make sure you are covered.

Steve is correct - CAR says "when in doubt, disclose!"

Good luck,

0 votes Thank Flag Link Mon Apr 1, 2013
Hi Janet,

Non-disclosure of material fact is the #1 reason Sellers are sued by Buyers.

The best general rule I have heard regarding this topic comes from the CAR legal hotline:

"When in doubt, disclose."

0 votes Thank Flag Link Mon Apr 1, 2013
I would think you would be covered by telling potential buyers that termites had been found and then show them what you did to remedy the situation. If they want their own report, a second opinion as it were, then that will be up to them to do. Never deny anyone their right to do their own due diligence as they see fit and always answer honestly. But I don't see a need to inform them know that another company wanted more money and I hope for your sake that the more reasonable firm did a satisfactory job.
0 votes Thank Flag Link Mon Apr 1, 2013
This is not just the "HONOR" system,
this is also LAWSUITS and court appearances!
The law reads that you have to disclose any material fact which would impact the value of the property; that includes past problems, that were remedied, and which you have first-hand knowledge of.
Put yourself in the Buyer's shoes; what would YOU do it it was not disclosed?
0 votes Thank Flag Link Mon Apr 1, 2013
Nine out of 10 times, if you're asking this kind of question, then you should be disclosing. I am sure your agent has also recommended to disclose. To be sure it's done right, I recommend having both inspectors come back and clear off the items after the work has been completed. This way your new buyer has nothing to pick at. Follow the advice if your agent.
0 votes Thank Flag Link Mon Apr 1, 2013
You must! Start with everything and then add whatever else you can think of. Buyers appreciate full disclosure more than anything else. It's required, responsible, and increases (not decreases) the value of your property. When a buyer finds a problem after the property is in contract, they are more likely to cancel. Full disclosure prior to getting into contract will prevent this from happening. Have your agent do what they can to show the work has been done in their marketing going forward. Give new buyers a good reason to want the property and perhaps they'll pay more.

Did your agent advise you to get reports before you put the property on the market? What is your agent advising you to do now? Asking questions in this forum can help, but your agent should be on top of this. At the very least, when helping my sellers get their property ready for sale, I tell them to get these reports done from a reputable inspector before going on the market. I'm available for further consultation if you are selling here in the Bay Area. Best of luck going forward.
0 votes Thank Flag Link Mon Apr 1, 2013

The buyers may want to have their own repairs estimate and inspection anyway.

Please be advised that the pest reports become of public record and it is very easy to find out about them. When a pest inspector comes by your house to perform an inspection, he/she usually places a sticker with the company name and date of the inspection in a visible place, somewhere in your garage, so everyone who comes after her/him to inspect again can see it.

Good luck!

Alina Aeby-Broker Associate
Pacific Union International
0 votes Thank Flag Link Mon Apr 1, 2013
You can usually resolve this question by asking yourself: If I was buying this house, would I want to know it?

Fix the problem or not, but include both reports.
0 votes Thank Flag Link Mon Apr 1, 2013
Absolutely! Seller Disclosures are incredibly important and help to prevent legal action down the line. The buyer has every right to know what they are getting into.
0 votes Thank Flag Link Mon Apr 1, 2013
If you have to ask yourself should I ? It's usually because you feel obligated to but don't want because you are afraid of the outcome.
Always disclose! Find a buyer that is okay with it and be done with it.
Would you rather keep secrets and have the potential of getting sued later?
Two rules in real estate: location, location, location and disclose, disclose , disclose !
0 votes Thank Flag Link Mon Apr 1, 2013
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