JUST WHAT PART OF â€œDISCLOSUREâ€ DO YOU NOT UNDERSTAND?
Just what part of disclosure do you not understand when asked by your real estate agent to fill out â€œto the best of your knowledgeâ€ a little form he referred to as â€œSPDS?â€
The Seller Property Disclosure Statement (SPDS) will be handed to each seller of real estate to complete and sign as the property ownerâ€™s declaration of what he knows about the property he is selling.Â Treating the SPDS as anything less than a free ticket to hell would be a big mistake.
Check out this article from Christopher A. Combs, a local Phoenix real estate attorney that should raise the hair on your neck if you have ever sold real estate:
ARIZONA LAW â€œREQUIRESâ€ THE SELLER TO DISCLOSE MATERIAL (IMPORTANT) FACTS ABOUT THE PROPERTY YOU ARE SELLING, EVEN THOUGH THE BUYER OF YOUR PROPERTY DIDNâ€™T ASK FOR IT.
The fact that you â€œforgotâ€ that your roof had repairs made to it over the years could be your free pass to a fraud convictionâ€¦ or even find yourself replacing a roof a year â€œafterâ€ you sold the home, thanks to Arizona law.Â If the new owner discovers that the roof had been repairedâ€¦ usually after sending a roofer up to fix a leak, you may find yourself the recipient of a nice â€œfraudâ€ letter from Christopher A. Combs.
Is there any such thing as a â€œniceâ€ fraud letter?
So letâ€™s discuss some of the conditions that may exist in the home you are selling that a buyer may NOT think to ask about, but may discover down the road…
- Is the seller a non-resident alien or a foreign person? Mandatory withholding may apply.
- Are you aware of any title issues affecting this property? You should have known when you purchased your property that there were certain deed restrictions affecting the â€œuseâ€ of the home that prohibited an â€œin-home business!â€Â If you fail to disclose that fact and the buyer makes his decision without even askingâ€¦ there is a strong possibility you may be purchasing the home back if the buyer is unable to operate his business there.
- Are you aware of any â€œunusualâ€ disturbances that might affect the property? You may â€œforgetâ€ the presence of active train tracks two blocks away hidden by a wall of treesâ€¦ but when the new owner moves in and is shocked out of bed in the middle of the night by a screaming train whistle, you may find yourself in the home moving business.
- If you donâ€™t know then just sayâ€¦ I donâ€™t know!Â But just be sure it canâ€™t be shown you did know.Â
- It is better to â€œover-discloseâ€ than to â€œunder-disclose.â€
- Educate yourself as to what a seller is â€œrequiredâ€ to disclose and what is â€œnotâ€ required.Â Here are a few exceptions:
- Your property was the site of a death.
- Your property was owned / occupied by a person exposed to HIV or diagnosed as having AIDS.
- Located within the vicinity of a sex offender.
**But here is the disclaimer to the information aboveâ€¦ â€œTHE LAW DOES NOT PROTECT A SELLER WHO MAKES AN INTENTIONAL MISREPRESENTATION.â€
I have spent over 45 years in the real estate industry, where I often drafted my own contracts for the purchase of real estate.Â I have spent many years having my work critiqued by some of the brightest and most talented businessmen in the world of real estate.Â And I am trained by the best to pay attention to detail and to not take â€œanythingâ€ for granted when it comes to conditions that affect my buyer or seller.
So just what part of â€œDisclosureâ€ did you not understandâ€¦ but now you do???
Remember to be truthful to the best of your knowledge, over-disclose, andâ€¦ HIRE CHUCK MALONE TO REPRESENT YOUR REAL ESTATE NEEDS.
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