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Elena Newton, Real Estate Pro in San Luis Obispo, CA

Being seller agent, do you have to disclose content of the home inspection ordered and submitted you by a

Asked by Elena Newton, San Luis Obispo, CA Sat Feb 14, 2009

prospective buyer whose offer was not accepted to other prospective buyers (seller doesn't want it to be disclosed thinking it might affect the value and desirabilty of the property)

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Lena, for whatever its worth, CAR Legal (the legal source for Realtors) suggests, "When in doubt, disclose." In fact, it's part of their message as you wait on hold. Non-disclsoure is the most heavily litigated issue in the Real Estate industry.

The fact that you write: "seller doesn't want it to be disclosed thinking it might affect the value and desirabilty of the property" is a clear sign that your Broker would probably insist that these materials facts be disclosed!

Best, Steve
1 vote Thank Flag Link Sat Feb 14, 2009
If a home inspection uncovers defects that you and the owner are "now" aware of..you must disclose these defects to prospective buyers or repair these defects so that they are no longer an issue for the sale of the property.
Most items uncovered by a home inspection are minor and easity corrected.
0 votes Thank Flag Link Sat Jun 27, 2009
Dear Lena,

For what its worth to you, this is what the California DRE says about disclosure in their reference guide:

This is an excerpt taken from the California Department of Real Estate Reference Guide, Chapter One.

"When acting in the capacity of an agent in a transaction for the sale, lease or
exchange of real property, failing to disclose to a prospective purchaser or lessee
facts known to the licensee materially affecting the value or desirability of the
property, when the licensee has reason to believe that such facts are not known to
nor readily observable by a prospective purchaser or lessee."


Reference Link :http://www.dre.ca.gov/pub_referencebk.html


Very Respectfully,

James C Sorena
First American Military
The Military Home Buyer's Network
0 votes Thank Flag Link Sat Feb 14, 2009
Lena, your client should not be concerned that the report will affect their value and desirability because they should take that report and have the items found looked at by a qualified contractor. I would recommend that your seller repairs those items that need to be repaired which will actually give potential buyers more peace of mind which would affect your seller in a positive manner.
Web Reference: http://www.HomesByLorie.com
0 votes Thank Flag Link Sat Feb 14, 2009
Thank you very much for support
0 votes Thank Flag Link Sat Feb 14, 2009
Lena:

To be truly prudent as a buyer you need to get your own home inspections even though there are existing inspections on the property. Those inspecting for you do not typically have access to the existing Inspection Reports, thus you obtain truly objective reports of your own. After careful examination of any and all reports, if there is disagreement between the reports, your agent can have the differing inspectors meet together on site to resolve the issues. Supplemental reports would then be in order with any new or changed information.

The seller must disclose any existing reports regardless of their purported accuracy.

.
Web Reference: http://www.carlmedford.com
0 votes Thank Flag Link Sat Feb 14, 2009
Lena, five agents are for full disclosure and with me, that's six. Disclose, disclose, disclose.
0 votes Thank Flag Link Sat Feb 14, 2009
It would be better to disclose with an explanation that the seller believes an item to be false than not disclose. Perhaps, the seller should pull in the proper contractor for the issue and have them either confirm (with a quote to fix) and/or comment as to the validity of the issue's existence...
0 votes Thank Flag Link Sat Feb 14, 2009
I explained to the seller that it would be illegal not to disclose the material facts to buyers. The seller believes that the home inspection report is false.
0 votes Thank Flag Link Sat Feb 14, 2009
Lena
Just to clarify some terms
Listing agent represents the seller
Buyer's agent represents the buyer
The term "Selling agent" refers to the agent that sells the home to a buyer, i.e. same as "buyer's agent".

The following is not legal advice.

When a buyer has an inspection performed, they pay for it. If the buyer decides to give the owner of the property a copy of the report, which is common, particularly when they want to negotiate repairs, that the owner (and their agent) then have knowledge is must disclose that report to others (IMHO).

If the buyer does not give a copy to the owner, then they have no knowledge,

The rule on disclosures is that the owner and agent must disclose to buyers any information that is material in nature. Material means would cause a buyer to change their mind about buying (either to buy, or not to buy).
0 votes Thank Flag Link Sat Feb 14, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Lena:

Any inspection is a part of the disclosure process and must become a part of the transaction records.
.
Web Reference: http://www.carlmedford.com
0 votes Thank Flag Link Sat Feb 14, 2009
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