Jim Valentine on Real Estate
Sellers of residential properties must complete a Sellers Residential Property Disclosure form for buyers to review and approve per Nevada law.
The consequences are harsh if a seller misrepresents on the form possibly resulting in having to pay three times actual damages. It is always better to disclose what you know and don’t try to guess about what you don’t know about your house.
Most buyers will have inspections completed on their behalf before they fully commit to the transaction. Most include a pest and physical inspection, but there are others that can be performed if symptoms of an unusual problem are evident.
If you have noted deficient items on your SRPD they can show that to the inspector and have them look closer at that component of the inspection. Sometimes things are noted that have been repaired as a matter of disclosure.
These can include a water leak where a stain is still evident and other such things where there is evidence of a problem, but the problem has been mitigated.
If your transaction doesn’t close after inspections and items have been revealed be sure to revise the SRPD for you now know about a problem you previously weren’t aware of.
This often slips through the cracks and isn’t noticed because inspection reports are shared, and everyone is aware. If things get legal, however, this could come back to haunt you so be sure to do the right thing – revise your disclosure statement.
The recently revised offer and acceptance forms do not provide for established limits for repairs. Any repairs expected from the seller must be negotiated after the price negotiations and after inspections.
If you disclose known deficiencies up front, then one would think that those items would have been factored into the offered price. If the negotiated price reflects the deficiencies, then there is little cause to negotiate repairs later if they are within what was reasonably visible during the viewing of the home.
That won’t stop somebody from trying to get a better price, but if you’ve disclosed and there are no major surprises you can better stand your ground. Even if it is apparent, i.e. - broken window, put it down so you have a record of your disclosure in the event of discord.
It is important to protect the buyer from deficiencies and yourself from unscrupulous buyers. People often look for something for nothing these days. One never knows what insignificant item might be the opening for a frivolous lawsuit that can cost money, time and emotion. Avoid it up front, disclose.
Even new homes often have issues found from physical inspections. There are a lot of parts to a home and things don’t always go together as planned. A builder usually offers a warranty for one to up to 10 years depending on the builder.
Builders don’t have to disclose with a SRPD, but they back their work up with a warranty. A resale home is just that, a resale. It is not new, and things may have aged a bit and need attention. Who knows it better than the seller?
Understand, however, that most sellers don’t go in their crawlspace or attic so they won’t know about what they can’t see. Using the mindset of “When in doubt disclose!” will keep you safe. Disclose what you know even if it seems miniscule. Some things may seem minor to you but could be a deal breaker for a buyer.
Let them know what you know, and they can decide what to do about it. Put it in writing. You don’t want any exposure after the close of escrow that can result in three times penalty, or even hard feelings.
Ideally, the buyers are buying your home and are looking to enjoy it as you did. Help them with that experience and all will end well. Disclosure is important.
You are telling them what you know and not guessing about what you don’t know. Your honest will help everyone involved from you and your family to the buyers to the agents. Do the right thing.
When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless! Jim Valentine, RE/MAX Gold Carson Valley, 775-781-3704. dpwtigers@hotmail.com