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Real Estate News And Advice
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December 3, 2009
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CONSUMER NEWS
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INTERACTIVE
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Response To: |
Is It Time To Dump Seller Disclosures?
(Peter G. Miller - 03/13/2001)
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Disclosures vs. inspections? The Buyer needs both!
Posted By: SanDiegoHomes.com - 12/30/2001 10:46 PM
Peter,
I couldn't disagree more with your position of doing away with seller disclosures.
While a seller may not have intimate knowledge of all aspects of their property, the seller who makes an honest attempt to disclose what they do know provides an important resource to the buyer and their inspector.
A growing problem buyers and sellers have to address now is the presence of mold. With recent court awards totalling millions and the health problems associated with mold, it is not an issue to be dealt with lightly.
In California recently a buyer entered into a purchase contract with a seller. The buyer hired a home inspector and subsequently closed escrow.
Members of the family that purchased the property developed respiratory related health problems in the months that followed. The family cat died. Doctors were unable to pinpoint a cause.
In a passing conversation with a neighbor, the neighbor asked if he could see the interior of the home since he had not seen it since the "flood". The buyer had no idea what the neighbor was talking about and then learned that the previous owner had a plumbing break that caused more than $20k in damages that the seller had failed to disclose and that the home inspector couldn't detect. Further investigation resulted in the discovery of toxic mold that stemmed from the "flood". The buyer was able to sue, but long term damage had already been done.
I'll admit that the disclosure process didn't prevent this incident, but it still gave the buyer legal recourse and the very threat of legal consequenses often eliminates the temptation for many sellers. In your hoped for disclosureless world, a seller could have had a roof or plumbing leak repaired. Even a good home inspector (many ASHI inspectors are less than competent)could conduct his inspection and be unaware of the repair. The only way a buyer would know of the past problem which may have created a present, yet hidden mold problem is with a seller disclosure.
I guess the upside to living in the most litigious state in the union and apparent 2 to 1 ratio of lawyers is that California will never do away with seller disclosures. I hope the other 49 states see the need to protect the consumer as well.
Bob Wilson
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Responses to this Post
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Disagree Posted by: OurBroker - 12/31/2001 06:23 AM

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