Does HUD's Homebuyer Protection Plan Hurt the Real Estate Industry?
(Frank Gregoire - 11/15/1999)
HUD inspections
Posted By: tekapo - 11/15/1999 08:36 AM
I feel this is a good move. Especially for agents. All agents are aware of poly-b and FRP but how many disclose it? The liability for a true buyer's agent does not end in a few years after the sale. There are many pending lawsuits now over these two issues in particular. FSBO's are disclosing it under advisement of their attorney's. Local Boards have varied opinions. Many home inspectors skirt around it merely by stating "home has plastic plumbing" in working order at this time.
Until you have been sued by a disgruntled homeowner and lost you will not realize the importance of an outside inspection such as this to release us of liability. We hold ourselves out to the public as a professional and have more knowledge than the average consumer. Therefore we are subject to E&O, malpractice and liability issues.
At least that's what the judge said. My offense? I didn't do my own title search prior to listing a subdivision and selling it. I relied on the seller's attorney.
Short term affects of the HUD inspections may result in fewer sales in the short run. Anyone in this business now and intending to be for more than the next five years, will appreciate it more. What a selling tool to list a property that already has had a HUD inspection. Anyone remember building to HUD specs and outselling typical tract homes? Or the difference in resales once a condo complex had been HUD approved for resales?
Once the shake up is done, it will be better for all of us in my opinion.