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Real Estate Fight Club

Oct 2021

If A House Was Inspected, Do You Need To Disclose Results?- EP 109

October 25, 2021

On this episode of the Real Estate Fight Club Podcast, Jenn and Monica are going to duke it out over "Should you have to disclose property defects from a prior inspection report?” What does the law say? How do you interpret things that are not spelled out?


Episode Highlights: 

  • The law says if you have your state's residential property disclosure form, all you need to disclose is what's on there, says Monica. However, Jenn says sometimes the inspectors have no idea what they are doing. 
  • Outside of the residential property disclosure form, if you discover something through a prior inspection report and you are given that report, do you have  to go back and edit that property disclosure form?
  • What if you don't trust the inspector and it is the same inspector you dealt with before on something else, and they are not good?
  • As a real estate agent, you have to investigate further if you were made aware; You have to get to the truth about this subject matter, whatever it may be.
  • Monica has advised clients to protect themselves from all the scenarios because that is really what real-estate agents work towards. 
  • It is a seller's house, and they have a decision that they have to make to accept the report or not and then accept the consequences or not, reiterates Jenn.
  • Monica says a strategic move has to happen at the point of inspection, and that is where it gets sticky.
  • It is too much weight that many people hold on the inspector, and most inspectors are general knowledge people.
  • Tiebreaker, Joel Advisor, joins the conversation with Jenn. First, he is going to answer whether he discloses property defects or not.
  • Joel says that they don't have the customer to have an inspection before closing the deal; He gives his suggestion about the matters.

3 Key Points:

  1. Jenn says, as the homeowner, she would make sure to sell the house in good condition.
  2. Most sellers want to deliver the house in good condition to the subsequent buyers. They take care of their homes, and they want to fix wrong things.
  3. People don't get sued over property disclosures, and you would have to prove that they know they knew about it. You must verify that.


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