Is a real estate agent required by law to tell you if they know for a fact that a house has chinese dry wall?

Asked by June Sullivan, Wildwood, NJ Tue Jan 25, 2011

Help the community by answering this question:

+ web reference
Web reference:

Answers

16
John Bennett, Agent, Orlando, FL
Wed Jan 26, 2011
Florida LAW 475.278.2

d) Disclosing all known facts that materially affect the value of residential real property and are not readily observable to the buyer;

I don't see this depends on anything.



;
2 votes
Ray And Karen…, Agent, Mount Dora, FL
Tue Jan 25, 2011
June,

If the agent knows about it they must disclose according to the Transaction Broker Notice in Florida.

Also, the seller must disclose if they know there is chinese drywall.

Many home inspectors are specializing in determinng if a given home has chinese drywall.

June, the link below will take you to the transaction broker notice. Please pay special attention to itme #4

http://www.wfl-re.com/PDF/TransactionBroker.pdf

I am also providing a link that will provide the chinese disclosure along with an explanation.

http://www.flplatinum.com/login_system/templates/chinese_Dry…

I hope that was very helpful to you.

Best Regards,

Ray Levy
Coldwell Banker Camelot Realty
Mount Dora, FL 32757
352-978-8551
1 vote
Monir Mamoun, Agent, Denville, NJ
Thu May 5, 2011
June only if it is known toxic, because there is also good drywall form China

here is my blog on the chinese drywall issue...

http://www.trulia.com/blog/monirmamoun/2010/10/chinese_drywa…
0 votes
Annette Law…, Agent, Palm Harbor, FL
Wed Feb 9, 2011
In order to 'know for a fact' of the presence of Toxic chinese dry wall, the home would have been previously inspected for the purpose of Toxic chinese drywall detection. This establishes the FACT. Should such an inspection result in a finding of no Toxic chinese drywall detected, you must be aware of the extent of the test. The toxic chinese drywall may exist in an area not tested, therefore, FACT becomes less absolute.

An agent is obligated to disclose the finding of the test but is not obligated to allow you to see the test results. The results are owned by whomever paid for the inspection.
0 votes
Tammy Hayes, Agent, Port Charlotte, FL
Fri Jan 28, 2011
Yes, the agent is required to tell anything that affects the property if they know about it. If the seller lived in the home, they would also be required to disclose this information in the seller's property disclosure statement.
0 votes
David Mahanna, Agent, Englewood, FL
Thu Jan 27, 2011
Hi June:
We are Transaction Brokers and we have to disclose anything that we know of that would materially affect the value of the property.

Thanks,
Dave Mahanna
0 votes
John Bennett, Agent, Orlando, FL
Thu Jan 27, 2011
"MAY"

"MAY BE"

To me, if a home I have listed has Chinese dry wall, I think I tell EVERYONE!

I don't need to be a lawyer to understand my responsibility's, it's very clear to me.
Others may think otherwise, but to me its very clear.

I am not a lawyer, but when I see a sign that says 35 mph, I think - I should not go faster than
35 mph
0 votes
Ruth and Per…, Agent, Los Gatos, CA
Thu Jan 27, 2011
Hi June:

Yes, any knowledge about property disclosed to the Buyers Agent or Listing Agent is Material Fact and has to be disclosed by Agent.

Always do a thorough property inspection.

Good luck.
Perry
Web Reference:  http://www.ruthandperry.com
0 votes
John Bennett, Agent, Orlando, FL
Thu Jan 27, 2011
So Kelly, you have a home listed than has Chineese dry wall, you do WHAT to comply with Florida law?
0 votes
Gina Guarnie…, , Florida
Thu Jan 27, 2011
You can have it tested and the home inspected, but in Florida : If a seller knows that a house has contaminated drywall and they do not disclose it to the potential buyer, they "may" be violating Florida law.

"A seller of a residential property, whether a bank or an individual and regardless of whether the seller occupied the property, is obligated under Florida law to disclose to a buyer all known facts that materially affect the value of the property which are not readily observable and are not known to the buyer."
0 votes
John Bennett, Agent, Orlando, FL
Thu Jan 27, 2011
Florida law on this subect is:

475.278.1

(b)Presumption of transaction brokerage.—It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer.

(2)TRANSACTION BROKER RELATIONSHIP.—A transaction broker provides a limited form of representation to a buyer, a seller, or both in a real estate transaction but does not represent either in a fiduciary capacity or as a single agent. The duties of the real estate licensee in this limited form of representation include the following:

(a)Dealing honestly and fairly;

(b)Accounting for all funds;

(c)Using skill, care, and diligence in the transaction;

(d)Disclosing all known facts that materially affect the value of residential real property and are not readily observable to the buyer;

(e)Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing;

(f)Limited confidentiality, unless waived in writing by a party. This limited confidentiality will prevent disclosure that the seller will accept a price less than the asking or listed price, that the buyer will pay a price greater than the price submitted in a written offer, of the motivation of any party for selling or buying property, that a seller or buyer will agree to financing terms other than those offered, or of any other information requested by a party to remain confidential; and

(g)Any additional duties that are mutually agreed to with a party.
0 votes
John Bennett, Agent, Orlando, FL
Thu Jan 27, 2011
I also should state, if the agent is a Transaction Broker, which is the case most of the time in Florida, NOTHING needs to be signed. By law, as of July 2008, your Florida Real Estate person is a Transaction Brokage unlss you are noticed otherwise.
0 votes
Neil Blumberg, Agent, Louisville, KY
Wed Jan 26, 2011
In Kentucky there is a duty on both buyer's agent and seller's agent to disclose latent defects they know of (and perhaps should have known of - ask your attorney - this may depend on each state's laws).

As to the seller's agent: he must disclose because he cannot participate in hiding relevant info from buyers; and as to the the buyer's agent: because he has an affirmative duty to act competently and to act in his client's best interest and for many other reasons.
0 votes
, ,
Wed Jan 26, 2011
June;

Which agent are you talking about? The seller's agent or your buyer's agent. I would definitely say yes if you are asking about your buyer's agent who was representing you.
Web Reference:  http://www.TonyBrust.com
0 votes
Neil Blumberg, Agent, Louisville, KY
Wed Jan 26, 2011
The law distinguishes between patent and latent defects. In Kentucky there is generally no need to disclose patent defects (those that can be seen, for example a large hole in the floor). But if that hole were hidden under the sofa, that would be a latent defect and if the Seller or agent knew about it, they would be required to disclose it.

The Chinese drywall may fall into the category of latent defect, as it looks the same as regular drywall but is potentially defective. Question #1 is "is the drywall from China? Question #2 is, even if it is from China, is it defective? The drywall imported from China between 2001 and 2007 was mostly defective, but not all of it was. So if answers to questions 1 and 2 are "yes" there is a duty to disclose if these facts were known. There is no duty to disclose what you did not or should not have known.
Web Reference:  http://www.metro1realty.com
0 votes
Debra B Albe…, Agent, Port St Lucie, FL
Wed Jan 26, 2011
June,

Good question~

A real estate agent is bound by ethics to disclose anytning negative about a property to the seller and buyer.

The Seller of the property is bound by LAW to do the same.

Debbie Albert, PA
Keller Williams of the Treasure Coast
Web Reference:  http://www.ronanddebbie.net
0 votes
Search Advice
Search
Ask our community a question
Home Buying in Rotonda West Zip Codes

Email me when…

Learn more