Mandated Disclosures

Question 1

Seller’s Property Disclosure

Answer 1

1. May be a required form or a written list & should cover all issues that might make buyers change their decision;
2. Sellers (never the broker) complete the disclosure to the best of their current actual knowledge;
3. The sellers and the broker must disclose all material defects (facts), both visible and latent (hidden), to all buyers even if selling “as is”

Question 2

Material Facts

Answer 2

1. The seller and broker/salesperson must reveal all known material facts
2. A licensee who withholds or lies about material facts may be guilty of misrepresentation or fraud, and the contract may be voidable;
3. A listing agent has a duty to present all offers to the client, unless otherwise specified in writing; multiple offers should be presented simultaneously;
4. The buyers ability to get a loan is considered a material fact;
5. Brokers owe those they don’t represent honesty, fair dealing, and care, even if the principal asks hem to lie or keep silent, they MUST disclose all known material facts;
6. All environmental issues, even those outside the property boundaries, are considered to be material and most be disclosed because they affect property value

Question 3

Home Warranty Programs on Existing Homes

Answer 3

1. Home warranties cover most of the home, including all major systems and appliances;
2. Home warranties are often provided as part of the listing or offer, they feature a deductible and may exclude some items from coverage;
3. The terms and length of the warranty are determined by the contract with the warranty company;
4. Brokers and salespeople should make sure buyers know that warranties are available