Question:
“I’ve never sold a home and I’m very worried about being sued for not disclosing something. Do you have any tips to avoid being sued?”
Answer:
It’s all about disclosure. If you disclose everything to a buyer, they’re unlikely to sue you later or win if they do sue you.
And the proper way to disclose and have proof that you’ve done so is to correctly fill out various disclosure forms (that we give our clients) and have the buyer sign off that they’ve received them.
Here are 7 tips I share with my clients regarding disclosure forms:
- Fill them out asap so we have can give them to the buyer once the offer is accepted.
- Only disclose what you know – don’t guess! If you don’t know something, write “don’t know.”
- Reference the source of anything you were told that you’re stating; e.g. “neighbor says lot goes past fence,” or “past owner said the roof was put on in 1987.
- Mention any past or present dampness, leaks, or mold, even if such conditions have been alleviated.
- Don’t say anything was “fixed” or “corrected”, etc., as that is your personal statement that the problem is 100% gone. Better to say “had repairs done on,” etc.
- If you must debate whether to disclose something, disclose it!
- Always use an experienced, organized agent. Some agents don’t use all the required disclosure forms that protect you. Others don’t get copies of disclosures signed by the buyer – these are proof the buyer received them.
As always, since I’m not an attorney, please verify with a legal professional.
