Ask Phyllis: a blog series of frequently asked real estate questions.
Completing Disclosures on a long-term rental
Dear Phyllis,
My cousins and I own an Orange County home inherited from our grandparents. One of the cousins passed away, and this cousin was in charge of renting and maintaining the house. The current tenant, who my deceased cousin placed, moved out, and we intend to sell the home “as is.” My cousin and I had never lived in the home, and until the other cousin’s passing last year, she had managed all the details. My surviving cousin and I only met the most recent tenant when she handed over the keys when moving out.
Our Realtor gave us lengthy disclosures, telling us that since we are on title, we need to complete them. I don’t believe we should take on the liability of answering all these questions as we know very little about the home. Is it necessary for us to complete the Real Estate Transfer Disclosure and the four-page Seller Property Questionnaire? It seems ridiculous; we know nothing about the maintenance records of the home, if anyone smoked, if there were pets, etc. How can we complete disclosures on a long-term rental when we don’t have the information? We urgently need guidance on this matter.
Looking for help
Dear Looking,
I understand your dismay and concern. These disclosures can be overwhelming, but remember, you are not expected to know the answer to every question. If you don’t know the answer, write unknown. Add a disclaimer or addendum to the Transfer Disclosure Statement stating that you and your cousin have never lived in the property, which has been a rental for thirty years. Also, note that you met the last tenant just once when she handed over the keys upon moving. Your Realtor may suggest having a pre-inspection or termite inspection, which I often recommend and that can be included with your disclosures to clear up any confusion.
I suggest you meet with your Realtor in person, or at the very least have a phone appointment, and you can complete the disclosures together. With your Realtor’s guidance, this won’t be so overwhelming. Remember, your Realtor is there to support you and ensure the process goes smoothly. Best of luck with the sale.
