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The most important document when buying or selling a home.

Omaha Real Estate David Matney with Alliance Real Estate

The Seller Property Condition Disclosure Statement is one of the most important documents when buying or selling a home. As a seller, it is EXTREMELY important to carefully fill out the disclosure completely and honestly. If the transaction ends up in a courtroom it is usually over this form.

As a seller, you want to disclose everything. If you have a question whether or not to disclose something the best answer is to disclose it. The sad truth is that many buyers do not read the seller disclosure carefully. I have had sellers disclose some very ugly items, some buyers if not represented properly will just blindly sign the disclosure without scrutiny.

As a buyer, it is important to carefully read the seller disclosure. Keep in mind, the seller disclosure is no substitute for a professional home inspection. Also, if the home has been on the market it may not accurately reflect the current condition of the home as well. It is important to read carefully and to make sure the seller clarifies any discrepancies or missing blanks.

The real value of an agent is the quality of your representation. A professional Realtor will assist you in making sure the disclosure is properly filled out and will help make the transaction a smooth process.

Thanks,

David Matney, CRS,GRI

Alliance Real Estate

Posted by David Matney, CRS ~ Omaha NE Real Estate ~ (402) 490-6771 on 12/05/2007 03:38 PM

Comments (12)

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Originally posted at: Omaha Real Estate Blog: The most important document when buying or selling a home.

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12 Comments on The most important document when buying or selling a home.

DEC

2007

I would agree with this except i have sat in a class and listened to BROKERS tell agents that they should have their clients mark (Don't Know) on every item on the Disclosure Report (This particular state has a column for Don't Know) ... the Brokers response was "This will keep you out of hot water." ... I was a guest at the meeting and really was in no position to stand up and say ... "This is crap ... our job is to treat each side fairly, not cover up potential issues with a pledge of ignorance."

Yes it would be a great tool if taken seriously.

Way to go David! I see you broke the 50K mark! Keep it up. I'll keep plugging away with you.

Allen, I would think they expose themselves to liability by doing that. Now, the seller can say. "Your Honor, the agent told me to mark don't know." Thanks for the comment.

Steve, thanks for the comment. Yahoo!

DEC

2007

David -- Bravo -- very good advice. I used to practice law full time in California and I gave the very same advice to realtors -- some did not follow it -- and they were not happy campers when they got sued! When in doubt -- disclose!

Joan, thank you. Eventually the buyers become owners and then they talk to NEIGHBORS. Neighbors LOVE disclose everything! Thanks for the comment and for stopping by.

DEC

2007

Thank you for the info. Unfortunately on our disclosure statement (as first time purchasers) -- we had no Section D, #6 where the disclosure asks outright about the property being on a flood plain/requiring flood insurance. Is this a current form for Nebraska or do you know where I can view what is required by law here?

We found out (from our Lender) 2 short weeks before closing (after paying our bank deposit, home inspection, and earnest deposit) that the home was in a HIGH RISK flood zone and would require at minimum 1100/yr extra coverage as required FEMA.

We were able to back out of the agreement (as we had no choice with the 100/month+ bump to payment).. but they are not taking responsibility for the monies lost by us that we are unable to get back (from the bank and inspectors). Obviously we would not have moved forward with this property had we been informed that it was indeed in a flood plain -- and need the money back so that when we find another home, we have the funds but nobody is budging.

Every listing (and MLS) said No to being on a Flood Plain. Who's responsibility is it to check this information? Obviously not everything can/will be known but being in a flood plain (since '91) is a black or white yes or no answer. Both the seller and listing agent are claiming they had no knowledge. . which we are finding very hard to believe.

Any advice would be greatly appreciated!

warmest regards!

Sandra, thanks for the comment. This is the most current form of the seller property condition disclosure statement. You can also check with the Nebraska Real Estate Commission. In you specific case you might want to contact an attorney or you can also file a complaint with the Nebraska Real Estate Commission as well. The role of the Nebraska Real Estate Commission is to protect the public.

Flood Plains can change, especially since Katrina. Also, the sellers might not have known if they owned the home for some time or they might have not have been required to carry flood insurance. The disclosure is only as good as the person filling it out.

In the future, have your agent write this clause in the contract. "Subject to buyer finding affordable homeowners insurance within 7 business days of acceptance." By writing this clause in the contract it will help protect you if flood insurance is required or if the insurance is unafforadable. In addition to this clause call your insurance agent to run a CLUE report to check for insurance losses against the home.

I always suggest that buyers start talking to different insurance carriers BEFORE even making an offer. So your insurance agent can help educate you on the process. I would check out this website called ChoiceTrust.com for more information on CLUE reports.

I am really sorry this has happened to you and if I can be of any assistance please feel free to call me at (402) 490-6771. I have also posted a blog on this homeowners insurance as well.

Take care,

David Matney, CRS,GRI

Alliance Real Estate

Disclosures are required for a reason. Lying on a disclosure form is worst than not providing one at all. I agree that this form is very important, and should be completed honestly, and completely. Great blog.

Gregg, thank you.

Thank you so much for your response and advice David. It is truly appreciated. I will definitely take heed and ask more questions going forward (and check the FEMA maps when in doubt). It is quite a devastating situation especially for first time buyers. Hopefully things will work out -- in the meantime we will talk with the Nebraska Real Estate Commission.

Have a great week. Thanks again!

Sandra, no problem. I hope all works out for you and I'm glad I could help. I have posted a new blog on a checklist for home buyers that might be some help.

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