In the hurry to get things done quickly, buyers' agents often will have clients fill out blank disclaimers and blank lead based paint disclosures for the listing agent to have the sellers sign.   For agents who do this:  DON'T!!

The law in most states (my guess is all states) is that sellers have to provide buyers signed disclaimers/disclosures.  HUD requires the seller/landlord provide a buyer/tenant a completed lead base paint disclosure and if there are know lead hazards, any records or inspection reports. 

If buyers do not get the disclosure/disclaimer at contract time they have a 3 day review/recession period on the contract.  If they don't' get it at all, they can walk from the contract anytime prior to closing.  Why would a buyer's agent want to cut short any recession period that a buyer may have?  By completing a disclaimer/disclosure in reverse order, the agents are actually creating a loop hole for anyone to get out of a contract.

As far as the lead based paint disclosures go, always follow HUD's rules and regulations.  HUD has severe penalties for mishandling the lead base paint disclosure form.  If you have a spare $10,000 go ahead and see what happens by incorrectly following HUD's rules on the disclosure of lead based paint.  On second thought, $10,000 might not be near enough. 

Also, buyers can't make disclosure for the sellers. 

 

 

Gary Duda
Broker/Owner
RE/MAX Action Real Estate
11551-D Nuckold Road
Glen Allen, VA 23059
804-521-5601
804-938-5777 cell
www.dudahomes.com
www.garyduda.wordpress.com - blog
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4 Comments on Buyers can't make seller disclosures

OCT
26
2007
 Don't you mean, "closing a loophole to get out of a contract"?
5:21pm • #1
Thanks for the reminder...and I am pretty sure it is in most states now. Why risk jail time for a 2-3% commission...think of all the sales you will miss doing in 3 to 5 years?
5:22pm • #2
Just had a thought, but if this is routine in the preparation of an Offer, could the disclosures/disclaimers simply read "None" (instead of blank).  In this way, the Seller would either agree, or strike it out and insert the required disclosures/disclaimers (ala counter-offer).
5:31pm • #3
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the disclosures must be filled out by the seller and the listing agent must provide the completed disclosures to the buyer's agent.

 
5:33pm • #4


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Gary Duda

Richmond, VA

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RE/MAX Action Real Estate

Address: 11551 Nuckols Road, Suite D, Glen Allen, VA, 23059

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Gary's advice can help you take your real estate career to the next level. He also offers advice on buying and selling Real Estate in Richmond, Virginia and surrounding areas such as Henrico County, Chesterfield County, Hanover County, Richmond, Goochland.


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