How does one disclose when you don't know? My answer to that is "Find Out". I recently represented a buyer, and when requesting a Seller's Disclosure, received one that was initialed and signed, but was blank. It was, however, marked that the sellers had never occupied the property. With that understanding, they knew nothing of the property.
Normally, I try to see the reason behind the actions of people, but I could not see the reason in this. The house was occupied by their daughter, while attending our local university. As many parents do, in our community, they purchased the house for her, and she then rented out the other bedrooms. I had a hard time imagining, that when they purchased the house, that they did not have an inspection. It was, after all, only 3 years earlier, and you must disclose if there had been an inspection in the past 4 years, but none was disclosed. And please, you can't tell me that as parents you did not have knowledge and if not, do some of the repairs, at least paid for some. It was suggested to me, that maybe they had a tenant agreement with their daughter. Even so, a landlord is going to have some idea of what problems there have been and what has been done to remedy it, to some degree.
As you can well imagine my buyers were very suspicious and felt that the sellers were trying to hide something. We had a very thorough inspection, and the items found were not anything that could not be overcome, and we are moving forward none the less. But this still makes you wonder, why? None the less, they still have lingering doubts about the honesty of the seller.
I thought, what if I was the seller's agent, what would I have recommended? We all know that many of the lawsuits in Real Estate stem from a lack of disclosure, and it would be in their best interest to disclose everything they could think of, check with their daughter and see if she knew of anything. And to be really on top of everything, have their own inspection and have it available for prospective buyers. I can't help, but feel, that the more you disclose, the less you have to negotiate over later, when the buyer has an inspection, and you are given a list of surprises, which are going to cut into your bottom line.
In addition, by doing so, you have given the prospective buyer a reason to trust, thus paving the way for a smooth transaction, mutual satisfaction. I truly believe EVERYONE, has to be happy with the outcome.
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