Home Buying in Queen Creek>Question Details

Gary Sparrow, Home Buyer in Medicine hat Canada

Wondering about C.L.U.E. reports

Asked by Gary Sparrow, Medicine hat Canada Sat Jan 31, 2009

How come so many listings say no clue reports or SPDS. Are there things to hide

Help the community by answering this question:


Hi Michele!

You will find it exceedingly difficult to obtain details about any given claim from the insurance companies. Truth is, they maintain their own database of info on those kinds of things, and a CLUE report is just a small by-product of that database (and a money-maker for them as well).

I'm not an insurance agent, so I don't know all the reasons for the secrecy and confidentiality. I was attempting to help you understand the use of a CLUE report.

In your previous home purchases, you were indeed fortunate to have never run across water damage claims. Your insurance agent can pull the CLUE report for you as well, and as I already suggested, it is a VERY good thing to check with her/him to make sure the property is definitely insurable. Mold issues are the biggest concern.

I remember when there as no suck thing as CLUE reports, and it was even worse. At least now there is an online 'report' available to us, even if it doesn't give all the gory details.

Are you in escrow, buying the property you're concerned about?

0 votes Thank Flag Link Wed Feb 11, 2009
Condfindentiality laws preclude who from giving me the details? The bank or the insurance company that had the claim against them?

This is my first experience with a C.L.U.E. report. I've purchased a few homes over the years.. mostly back east. I guess the other homes never had "red flags" as my insurance company never mentioned anything.
0 votes Thank Flag Link Wed Feb 11, 2009
Posting your question here is not a problem, Michele. I just thought you might get more people to weigh in on answering it. ;-)

The CLUE report is what I call a "red flag" report. Confidentiality laws preclude them giving you details,but if there HAVE been water damage claims, then it's telling you that you REALLY need to do thorough inspections and investigations on the property. Typically, in Arizona and most states in the US, a seller would be required to disclose the nature of those claims in some type of seller disclosure form. But if you're dealing with a bank owned property, the banks will not provide it, inasmuch as they have no knowledge of them.

The key concept here is "Buyer Beware!" Do you have a Buyer's Agent Realtor? If so, you should consult with him/her about the issue. If not, then you shouod contact your own insurance agent right away.

Email me if I can help further,and good luck!

0 votes Thank Flag Link Tue Feb 10, 2009
Hi Randy,
Yes, unfortunately it makes sense in someways but in other ways it does not make sense. To me, this seems to put the buyer in a catch-22. They say, "do your homework before buying a house". But when you go to research this crucial information... it's limited. It's like buying a car that's been in a accident... with no knowledge of what the accident involved.

I'm sorry I posted this on someone elses question... and I did just repost it. I'm new here...
Thank you for the answer Randy.
0 votes Thank Flag Link Tue Feb 10, 2009
Michele, you might want to consider posted your question as a stand alone question, but I'll try to address it.

In short, there's no way to find out the details about a claim on the CLUE report. I would recommend that you contact your insurance agent and have them check it out. THat also gives them an opportunity to tell you if the property is insurable, and if so, at what rate ~ which is something you want to find out immediately anyway.

Make sense?

0 votes Thank Flag Link Tue Feb 10, 2009
My question is...
the foreclosed property I am looking at buying has 2 water claims in the last 5 years. But that is all the C.L.U.E. report says. It doesn't say what happened. How can I find that information out?
Thank you!!
0 votes Thank Flag Link Tue Feb 10, 2009
I hope you like redundancy, Gary, since we all seem to be saying the same basic thing. Funny what one little four-letter word (C.L.U.E.) can elicit from a group of professional Realtors. LOL

0 votes Thank Flag Link Sat Jan 31, 2009
Hi Gary,

No CLUES report is simply a way of saying you are buying the property "as is" and if there were any claims on it which you discover after the purchase that were made with the insuring company at the time the home was occupied, you would be responsible for any of those issues.

An example would be if a mold claim was made. Some insurance carriers that carry home owners policies charge a very high rate for homeowners insurance if there was a mold claim and some have attempted to avoid insuring.

There is a way to get at least some information on the history of insurance, although very limited.

Insurance carriers like the company I use will allow you to call and get a quote for insurance coverage. At the time the quote is given, they are able to do a limited search for past claims.

This at least would provide you with some idea of it's history, although not all.

I hope this helps you better understand.

Thanks for the great question by the way.


Stew Keene
Ph (480) 220-7491
Fax (866) 711-8573
Keller Williams - Scottsdale, AZ
2008-2009 Master of Real Estate award recipient
0 votes Thank Flag Link Sat Jan 31, 2009
Gary the CLUE report is the insurance history of the home to disclose any claims. This report can be obtained by the buyer. The SPDS is the sellers property disclosure statement and is normally filled out by the residents of the home. Since the bank owners know nothing of the property they cannot fill in the report.
0 votes Thank Flag Link Sat Jan 31, 2009

It is because they are lender owned and there isnt away to get one from the original owner! However you can still research the property and insurance companies will be able to know if there were any claims on it. Also and inspection can reveal any repairs that need addressed!

I hope this makes sense!

Lucinda Tkach
Windermere Central LLC
0 votes Thank Flag Link Sat Jan 31, 2009
PS You should also call your insurance company within the 10 day inspection period to make sure that the property is insurable and at what rate.
0 votes Thank Flag Link Sat Jan 31, 2009
Hi Gary!

You're most likely looking at bank owned listings when you see comments like that. The lenders that have foreclosed on the properties are basically trying to say that they've never lived in the properties and don't have any knowledge about them. It's the precursor to their selling them in an "as-is" condition.

Best advice is to get a professional home inspection, obtain a CLUE report from your own insurance agent, and otherwise you and your Buyer's Agent do your due diligence.

Let me know if I can help in any way.

0 votes Thank Flag Link Sat Jan 31, 2009
Hi There,
No, not necessarily. They are saying that since they have never occupied the home. The items that are being addressed are the SPDS (Seller's Property Disclosure Statement), and the Clue Report, which is the Insurance Claims History Report, to which both of these can only be provided by a seller that lived there (was able to fill out the questions regarding the history of the home), and regards to insurance, have history of insurance on the home, to which when a bank owns and is selling a home they don't have that information, so they make us take that out of the contract as a buyers agent, since they can't not provide what they don't know. If you need a blank copy of the SPDS, I can get you one, but as far as the insurance goes, there isn't anything to fill out as much as if there is any history on the home then the insurance provider provides that to the seller, when selling a home to be able to give that to the new buyer. When a buyer goes and gets insurance, before an insurance company will insure a home, they check for the history, so it's all covered by the new buyers insurance anyway.
0 votes Thank Flag Link Sat Jan 31, 2009
Hi Gary,
Well, a lot of what you are seeing are probably bank owned (REO) homes. If the "Seller" has never lived in the poperty, then they have nothing to disclose. However, you should ask your Realtor to give you a blank copy of the SPDS so you can see what they aren't disclosing. It might be helpful when you are getting your inspection also. If they know anything about the property, they must disclose it. Good Luck - and let me know if I can be of any assistance !!!
-- Lisa
0 votes Thank Flag Link Sat Jan 31, 2009
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