Home Buying in Sacramento>Question Details

Weisan, Home Buyer in Whittier, CA

does a seller have to disclose the 90 day flip rule to a seller.?

Asked by Weisan, Whittier, CA Mon Dec 17, 2012

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I do not believe there is a law or a rule saying that a seller is required to disclose when they acquired a home. However, if a buyer directly asks a seller, or asks thru their agent, the seller is supposed to honestly answer the question and provide the info to the buyer--as part of the disclosure process.

If a buyer is wondering when the seller purchased the home, the buyer can review the title report, it will show the date. Or the buyer can to the tax accessor's office and look it up. It's not a secret date nor privileged info.

As indicated in previous answers, if a buyer's lender has an issue with the home being a "flipped" property, there are several ways to resolve any questions--including that of value--that a buyer's lender may have.

A flipped home doesn't mean an its an unsellable home, nor a problem property.
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0 votes Thank Flag Link Mon Dec 17, 2012
Technically the 90 day "Flip Rule" is not the sellers rule but potentially your lenders rule. The listing agent would be well advised to disclose this up front as some lenders have strict guidelines on flips, namely FHA lenders. Your agent should be able to tell you quickly if this property has been acquired by the seller in less than 90 days.
0 votes Thank Flag Link Mon Dec 17, 2012
Title will identify the circumstances under which the home was acquired by the current owner. It isn't an issue for a cash buyer. It MAY be an issue for a buyer securing a loan.

Most realtors will disclose it if they anticipate an issue with certain types of buyers, like those using an FHA lender that MAY have a 90 day flip rule. The seller will not need to disclose it as it's obvious from title report, but when you're trying to find a qualified buyer, you'll want to select from one that can qualify to buy the home....simple logic there.
0 votes Thank Flag Link Mon Dec 17, 2012
There are banks that use the 90 day flip rule and banks that don't. As a seller, you'll need to disclose that the home has been flipped, and then the buyer's lender will decide if they need 2 appraisals and if they need to wait 90 days til closing the deal. Hope that helps :)
0 votes Thank Flag Link Mon Dec 17, 2012
Many banks still require that there be longer than 90 days between transactions.
Seller doesn't need to disclose..It WILL come up in title and through lender
and the Buyer's agent should also already know that the home was just purchased 45 days ago, etc.

My investors buy and sell these all the time in under 90 days. Never an issue.
2nd appraisal required with lender.

Why wouldn't you want to disclose?
0 votes Thank Flag Link Mon Dec 17, 2012
Are you trying to ask if the seller, presumable you for the purpose of this question, should disclose the way a home was initially purchased? If that is the real question, then you should disclose how the property was purchased and that a 90 day flip rule may apply. That might save a few headaches in the future.
0 votes Thank Flag Link Mon Dec 17, 2012
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