What do you do when the Seller or Buyer is not disclosing all facts?
This is really easy for me if I represent the Seller-I CANCEL the listing. I cancelled two of these this morning. Under the AZ State Law, as a listing agent I am required to disclose any material facts that I personally know about the property to a potential Buyer or Buyer’s agent.
When I am placed in an uncomfortable situation, for example when two licensed contractors tell me that the roof is in jeopardy of falling in and the Seller does handyman Bandaid fixes-I have NO choice but to disclose this.
Personally, I have heartburn in these types of cases. What other items would my own client do? How would I get through inspections? Frankly, this is a total waste of my time and marketing resources.
As the Buyer or Buyer’s agent, it is important to obtain SIGNED documentation from the Seller. After Close of Escrow, there are legal issues for non-disclosure and this would be handled by the Attorney and we all know how expensive this can be. At least when the Seller signed the disclosure documents, one would like to believe that the Seller would not sign something knowing that it is untrue or incorrect.
What about the Buyer?
Buyers have contractual obligations to tell the truth or disclose material facts. As a Buyer’s Agent I have the obligation to disclose material facts to the Seller or Seller’s Agent as well. What if this is an FHA loan and I know that they have no intention of living in the unit? What if I know that they have lost their job?
Recently, one of my vendors were asked to participate in mortgage fraud-guess what-he dropped the relationship immediately. These are the issues that come up every day in real estate and it is important to be aware but to also protect yourself as closely as possible.
Remember one of my most common thoughts is to listen to your gut. Usually not wrong.
Feel free to call my cell phone at any time 602-688-9279. I do answer ask anyone!
No commission is worth going to court or Jail. It has always baffled me when people are so upfront sometimes about their illegal intentions and look at you as you are the strange one for not wanting to participate.
The bottom line is that it is not worth closing a deal if it could tarnish one’s great reputation. You have brought up some excellent points when it comes to real estate. Do the right thing at all times.