Disclosure when selling Your Home! Winston Salem

The NC Real Estate Commission analyzed all of the disciplinary cases published in the eBulletin for 2020-2021, to determine the most common violations under License Law and Commission rules. Although the Commission does not have formal categories for cases, some cases fall into more than one category which results in brokers having multiple rule violations 47% of all violations were related to disclosure of material facts. These can result in disciplinary action and/or civil litigation for both agents and clients! Below is from a recent discussion in continuing education 

“See No Evil, Say No Evil” (see note at end) Jake, A broker with A+ Realty, meets with Peter, a property owner, to provide a listing presentation. During the meeting, Peter says that he recently had a home inspection that indicated water leakage in the basement walls and crawl space, but that he has ordered no further inspections to verify the issue or determine repair needs. Jake tours the property and observes no moisture or standing water. Peter decides to list the property with Jake. On the Residential Property and Owners’ Association Disclosure Statement, RPOADS, Peter selects “No Representation” to all of the questions. Throughout the listing period, there is no visible evidence of moisture or water, so Jake does not mention Peter’s inspection report to any of the prospective buyers. 

 1. Did Jake fulfill his duties as a broker? YES/NO Answer: No. 2. Why or Why not? The answer is NO! 

 a) Although Jake did not personally observe any moisture or standing water, he still had an obligation to disclose the water leakage in the basement walls and crawl space.

 b) Because Jake has an obligation to disclose whether he personally saw any water or not. 

 c) Because the owner, Peter, already checked “No Representation” on the RPOADS.  

d) Because Peter’s completion of the RPOADS relieved Jake of any additional disclosure obligations< 

 Note: In my past experience, it was felt that an issue already repaired does not have to be disclosed. However, we learned that it is best to disclose this. Some sellers will not want to disclose as they feel it will hinder the sale. However, we believe it shows good faith and also protects listing agents (me) and my clients from any future litigation. It is up to the buyer's agent to protect his/her client by getting the repair inspected. I sure would!

Thinking of selling?   Visit. www.RobyRobertson.com