So the neighbor has parties all the time, should the seller disclose it???
Well, I don't know about you, but if my neighbor had parties all the time, he better be inviting me there!!!
Okay, seriously...
Your seller is looking over the disclosures, and is wondering if they should disclose the fact that one of their neighbors has parties all the time. I mean ALL THE TIME...
Now they are afraid that if they tell a buyer, the buyer may walk...
So this brings to mind a few things.
First off, if you do not disclose the fact to the buyer, the will find out anyways... Either when they are walking around the home inspecting it, or after they move in... You know that the neighbor is either going to tell them that there is a "problem" neighbor, or that actual neighbor will invite them to one of their parties.
Second off, when a seller is selling their home, they should be disclosing anything that could affect the value or desirability in the eyes of the buyer. This can also mean, the buyer should know about anything that could affect the value of the property for their intended use now and into the future. So the fact that a nuisance could affect that aspect in the buyers eyes, means that it should be disclosed.
In California, a buyer has a statute of limitations that last 2 years when it comes to items that were not disclosed to them. Now the seller must disclose all items to the buyer that are known to the seller or discovered during the escrow period. The catch is that the 2 year time frame starts upon discovery... Yup, discovery. So 5 years could pass, then the buyer discovers something, this is the date upon which the 2 years starts. So in theory, the limit can be limitless.
So a good rule of thumb is... If you think you should disclose something, then you are probably right!
Side note: In the Silicon Valley and SF Peninsula area of California is where most new disclosures, laws, forms originate from. So this may not be in your area, but it may be soon.
Second Side note: In our area, we also ask the seller to disclose everything PRIOR to listing the property, so that all potential buyers view all the disclosures prior to writing any offer. So if a buyer does not like something about the property, they know BEFORE the write the offer. Therefore, when you get offers, you are getting them based on the fact that the buyer is okay with the condition of the property, and have read all the disclosures. This shortens the buyer contingency period to about 3-5 days. This does not include the loan contingency, which can be 14-17 days. The seller posts these items along with the listing, so that buyers agents then download them, and show to buyers.
-Chris
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