Some states are "non-disclosure" states. Utah is one of them. This simply means that a seller is not obligated to inform the buyer of anything about the home. Yep, this even includes things like violent crimes, drugs, problems with the home, etc. The seller does NOT have to tell the buyer... Unless the buyer asks. This also holds true for meth. If a seller had a meth lab in the home but had it cleaned up to meet the state requirements and a certificate for cleaning up a meth house was issued, then the seller does NOT have to inform the new buyer.... Unless the buyer asks.
If a buyer is using a Realtor then the Realtor is required to search out and disclose. They present a long form to the seller that questions the seller about the home they are selling called a "Disclosure Statement". This is a multi-page form that asks simple questions about the home. It is REQUIRED by the Realtor and MUST be filled out completely prior to the sale. If the seller fails to inform the buyer of any issues with the home on this form then the seller is not protected after the closing. However, if the seller discloses everything then the seller is protected after the closing.
A buyer is also protected because it gives them the chance to back out of the deal if there is something in the disclosures that they don't like.
A good Realtor will investigate as much as possible for their client prior to a sale. However, most Realtors are too busy with the process and other clients that they have very little time to research information.
It's better to disclose something and ruin a deal then it is to hide it and end up in a costly court battle.
You would be amazed at what many buyers will accept. It is rare that a buyer will back out of a deal over the disclosures.
A home that is For Sale by Owner will generally not have disclosures given. It really turns into "Caveat Emptor" (Buyer Beware). Then a huge court battle starts and it's all in the judges hands after that.
Todd Watson
(801) 815-5513
Wednesday, November 12, 2008
Non-Disclosure Danger
Posted by Todd Watson at 9:46 PM
Labels: appraisal, appraiser, disclosure, first time home buyers, for sale by owner, free home advice, FSBO, home, home buyer, home buying, homes, non-disclosures, nondisclosure, real estate, Realtor
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