Issues with the Seller’s Disclosures

Issues with the Seller’s Disclosures

Ask Phyllis: a blog series of frequently asked real estate questions.

Dear Phyllis,

My daughter is in escrow on a home in West Hollywood. Three buyers submitted offers, and the seller accepted hers. After she completed her inspection, she received the seller’s disclosures.

In addition to the defects her inspector found, she learned that someone had died in the home. She also learned about a dispute with a neighbor over the fence and the property line. Now she feels the seller misled her. She says she would not have made such a high offer if she had known this information up front. What are your thoughts?

Jane K.

Dear Jane,

I agree that these are two genuine concerns that should have been disclosed to your daughter at the time of her offer. Note that the other bidders will be concerned about these issues as well. Your daughter should discuss with her Realtor about re-negotiating her offer based on this new information.

I can understand your daughter feeling deceived. How I handle my listings is much different. To avoid issues with the seller’s disclosures, we provide them to the buyer when an offer is received. There are several reasons to do so. One is that if something will cause a buyer to change their offer, we want to know before opening escrow. Another reason is that we want to avoid a canceled escrow. For some, a death in the home is unacceptable and would result in a cancellation of the contract.

Finally, your daughter needs to take the dispute with the neighbor regarding the fence seriously. Her Realtor should contact the listing agent and request that they contact the title company. The title company sometimes hires outside inspectors who measure the property based on recorded public information. Although this is not a survey, the cost is approximately $200.00 and much less than a survey. Hopefully, the seller will pay this additional fee. Your daughter may consider discussing the dispute with a real estate attorney if she opts to move forward with the purchase.

Related Post: Neighbors and Fencing