So you want to list your house. And of course, just like every other seller out there, you want top dollar. But whether it is a buyer’s market or a seller’s, you need to be careful, because details are everything.
Lawsuits happen all the time in real estate, and for various reasons. But one of the big ones is lack of disclosure about the property. In the last couple of transactions I have been in representing buyers, the disclosures were either incomplete or worse yet, false. That leaves major room for lawsuits. Here are examples:
Problem: Stating that the property has something that it really doesn’t: If you as the seller state that there is a satellite dish and there actually wasn’t, then you may be held responsible to provide one.
Solution: When you fill out the paperwork with your Realtor®, walk through the house to make sure you covered everything.
Problem: Stating that a recent remodel was completed with a permit: As a best practice with our office, we always pull permit history for every property our buyers are interested in purchasing. If you close on a sale and the new owners found out that work was completed without a permit and you should have known, you could be held responsible.
Solution: After you do the work, have the contractor show you that the final permits have been signed off by the city. In some areas (such as Los Angeles) you can also check online and see what permits have been pulled and their status.
Problem: Stating that everything is in working condition when you know something may not be: If you are having plumbing problems and don’t mention it, then you could be on the hook for the repairs. These could cost you thousands of dollars if it ended up causing more damage to the property.
Solution: Consider doing a pre-inspection before you list. Also, discuss with your Realtor® if you think something may not be working properly and how to handle it.
Problem: Thinking your Realtor® is also a lawyer. Unless they practice law with a degree, they are not lawyers. Some Realtors® do their best to give you advice, but laws constantly change.
Solution: If you feel uncomfortable about something, consult an attorney.
Of course this will not protect you from all lawsuits, but this is a start in the right direction. In addition, there are many clauses that state that the buyer has to do his or her due diligence. But sometimes this does not prevent people from attempted to sue another. Even if you are in the right and win, you still wasted time and loss potentially thousands of dollars. Like mentioned in a previous statement, we are not lawyers, but our office has a set of best practices that assists in preventing items such as these from occurring. But go ahead and consult an attorney. Don’t worry, we won’t get offended.
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