If you sold a home and were sued by the buyer for failure to disclose defects, you may be surprised at how things could have gone so wrong.
And, your real estate agent’s and their Broker’s actions may be to blame.
In a recent issue (JUNE 2012) of TEXAS REALTOR magazine it becomes clear that a real estate agent’s advice to their home selling client, to refuse to receive a copy of an Inspection Report, results in increased risk to the seller.
No one likes surprises in the home buying process. Homebuyers can and often do sue the seller when the seller knew or should have known of undisclosed defects in the home.
Agents across San Antonio and other areas of Texas put their home selling clients at risk every time they advise their home selling clients to turn a blind eye to Inspection Report findings.
Most buyers want to know what can injure, kill, or bankrupt them if they purchase the property. Some buyers want to know every little detail about the house.
It goes like this…
A prospective homebuyer hires an Inspector to evaluate and report the true condition of the property.
The buyer is apprised of significant issues. This can range from a poorly performing foundation, faulty framing, an old and leaking roof, antiquated wiring, leaking plumbing, water intrusion through the walls and windows, etc.
The buyer opts to re-negotiate the sales price or asks for specific repairs.
The seller’s agent advises that the seller should refuse receipt of the Inspection Report, “so that ‘you’ don’t have to disclose it to future prospective buyers if the buyer and seller can’t come to terms on the re-negotiation”.
In addition, agents fail to advise their home selling client that once they are aware of a defect, report or no report, they must update the ‘Seller’s Disclosure’ and disclose the defects.
Add to this the fact that real estate agents will recommend Home Inspectors whose Errors & Omissions Insurance covers the agent’s Errors & Omissions Insurance deductible. Agents simply walk away from the ensuing lawsuit unscathed by the lawsuit. Simply put: no risk to the real estate agent who gives poor advice to their client.
There are many, many hard working real estate agents who want to honestly and competently serve their clients.
Unfortunately, those agents and their Brokers that try to conceal Inspection Report findings by advising their home selling clients to refuse the Inspection Report or by failing to advise their clients to update the ‘Seller’s Disclosure’ based on the findings in the report, are putting everyone at risk.
If you are a home seller who has been sued or is being sued for selling a home with undisclosed defects, look closely at the actions and advice of your real estate agent.
If you have been sued, you may have a cause of action against your real estate agent and their Broker. Protect yourself.
