Realtor being sued! Think it can't happen to you? Think Again!

Great post,,,however I view the Seller's Property Disclosure SPD as the seller's history of their property.  Since State Law is different, in GA our Georgia Association of Realtor contracts reaffirm we are not experts in taxes, inspections, toxic wastes etc.  If the buyer needs other info they need to research it further.  You can be liable for as much as you want in real estate.  Some items are latent not able to be seen by normal inspection, who should be liable for that?  Who should be liable for a condition shows up two years later?  A drought existed when you sell a home one year, and 3 years later you are in a monsoon season?  How long the responsibility, and liability?  Full disclosure is important in our industry, but if a seller lies in their Seller's Property Disclosure, then they lied to you, the other agent and the buyer.  I keep all files as required by law for 3 years and discard them.  I make no comment on the SPD, that is a seller thing, and if the buyer has reservations they can ask for a further explanation, an extension of the the contract to pursue other items identified by their inspector or walk.

David, We use the Seller Property Information Statement when we take a listing.  Here is one from one of my listings that recently sold.

I also advise all of my buyers to have a home inspection done by a qualifed home inspector..if they refuse,
then I write it into the contract that they were advised to have a home inspection done but chose not to...they sign the contract, and it can never come back to haunt me.

I also make sure all things are disclosed to any potential buyers of any of my listings...sometimes the sellers prefer to keep things hidden, however I advise them that they could end up being sued down the road and that honesty is the best policy.

Jo 

David, good to be reminded about documentation.We're lucky so far and haven't had to deal with this issue yet, and we hope not. Recently had the client from hell that threatened, and that got him nowhere very fast.

Appreciate your reminder. 

I try to keep everything regarding a transaction.  I could use a better system.  I've been thinking of making it all electronic and backing it up to hard drives for  more convinient storage.

David, One quick and easy thing to do is to copy and paste all of your email replies into your data base notes for later recall, both under the buyer and or seller, as a paper trail often gets difficult to manage even if you have a print copy.  If it is a phone conversation, then enter some notes about that conversation as well. Most data base notes can not be deleted and they are time stamped.

David,

I try and keep all correspondence with buyer/seller.  I think I will start scanning them myself, I wonder if that would be good enough to hold up in court.  These folders just get too full.