I see it often and I hear every now and again...

A FSBO that gets sued because they don't understand the law of disclosure.

Minnesota is a full disclosure state.  It does not matter if you sell on your own or not, you MUST disclose.  (There are other options, but they don't let you out of the full disclosure.)

I called  a FSBO for a client of mine this week.  I asked the Seller for disclosures. 

"I don't have any...I am sell AS-IS."

I explained that the law states otherwise. 

"Aww, that is just a bunch of Bull."

So, I explained the scam that I have seen where the seller does not give disclosures...the Buyer fixes the home and then takes the seller to court for not disclosing.  The Seller loses every time!   The cost to most sellers is more than double the commission amount.

If you are going to sell on your own...KNOW THE LAW.  Or you could end up seeing a judge in court!


 
This post has been included in Minnesota Real Estate News Chisago County, MN Real Estate News North Branch, MN Real Estate News
Post is included in group: "Whacked"!!!
Post is included in group: Diary of a Realtor
Post is included in group: Realtors®
Post is included in group: Minnesota Real Estate
Post is included in group: Out Of The Box!

31 Comments on For Sale by Owner...Are all your bases covered?

20 Most Recent Comments Displayed Show All

JUL
26
366,085 Points 29 Featured Posts Outside Blog Called Shot Master

Good morning William - the FSBOs that you've called are lucky that you let them in on a risky and expensive mistake!
5:50am • #12
265,930 Points Called Shot Master

I have also heard of this scam.  The one I heard of cost the seller in court over $30,000.   My contact on this said they are sure the BUYER knew exactly what he was doing when he bought knowing the avenue to take.
6:10am • #13
337,716 Points 23 Featured Posts Outside Blog Called Shot Master

I had no idea.  I thought a FSBO was the same as selling a piece of exercise equipment on CraigsList.  I will definately check on the laws in Florida.  This could help many agents get rid of FSBO's.  Thanks
6:11am • #14
655,846 Points 9 Featured Posts Outside Blog Called Shot Master

I agree that this is a big thing with FSBO in MN. They dont disclose and could get caught in a mess like you say.
6:22am • #15
790,245 Points 112 Featured Posts Outside Blog Called Shot Master

There are so many things sellers don't think about. I recently sold a home that was previously listed as a FSBO. They showied it as a 5 bedroom (they had converted a loft to a bedroom). However, the house was on a septic system that was only perked for 4 bedrooms. They didn't even realize they needed to supply a copy of the septic letter to buyers. Who wants a lawsuit? Better to get the expert's advice and not risk it.
6:37am • #16
861,414 Points 70 Featured Posts Outside Blog Called Shot Master

I can see where one would have the frame of mind that accompanies the thought of doing and not doing something when they do it themselves...It is easy to believe that the law doesn't apply to you the layman, but it is not wise to do so
7:44am • #17
411,530 Points 20 Featured Posts Outside Blog Called Shot Master

Good blog. Its just another reason why selling on your own isn't usually a good idea.

 
7:49am • #18
670,406 Points 74 Featured Posts Outside Blog Called Shot Master

Another great reason to NOT sell FSBO.  There are too many things that can go wrong that the average seller just doesn't know about, or in this case, they don't get it or care to get it.  Good post!  
8:24am • #19
941,401 Points 83 Featured Posts Localism Sponsor Called Shot Master

Hear, hear Bill! It is Buyer Beware if a seller refuses to fully disclose! Congrats on the feature!
9:49am • #20
470,418 Points 50 Featured Posts Called Shot Master

It's true buyers will win in court if material defects weren't disclosed. Having an agent with experience represent a seller is a must in these times. Why go it alone to save a few dollars? Not knowing what the laws are is no excuse. Excellent post,
9:55am • #21
426,934 Points Outside Blog

Good post, I have a few friends who definitely need to read this one...
10:08am • #22
301,008 Points 7 Featured Posts Outside Blog Attended Rain Camp

Hi William, ignorance of the law is no excuse. They will have to pay up. And it is much better to have a Realtor watching your back.
10:43am • #23
239,647 Points 1 Featured Post Called Shot Master

Bill, there is a reason agents have so much paperwork. It isn't for the health.
11:26am • #24
599,366 Points 48 Featured Posts Outside Blog Called Shot Master

Hire a Realtor®.... Preach it William!
1:57pm • #25
1,121,597 Points 98 Featured Posts Outside Blog Hit Router Attended Rain Camp Called Shot Master
I certainly defend a homeowner's right to sell their house without a Realtor. That being said though, that right to sell your home on your own also carries with it a pretty hefty responsibility as well.
1:58pm • #26
334,708 Points Outside Blog

Bill: this is some good Info for all,keep up the good work and and good luck with your business,  E
2:09pm • #27
1,425,595 Points 56 Featured Posts Outside Blog Called Shot Master

Laws are different in every state.  Scammers know how to use the law in this case.
2:25pm • #28
183,521 Points 6 Featured Posts Outside Blog Called Shot Master

One might think that it is the buyer who should be ware when the seller doesn't disclose.... and that may be true. BUT, it may also be true that the SELLER should be ware of the risks that s/he is inviting when they do not disclose. A commission may be cheap assurance for avoiding problems.
2:53pm • #29
515,389 Points 26 Featured Posts Outside Blog Called Shot Master

William, another example of why it would be a good idea to use a real estate agent to sell your home and not go it yourself.
4:39pm • #30
JUL
30
525,484 Points 10 Featured Posts Outside Blog Called Shot Master

I am so glad you were featured for this.  I have heard it over and over again.  And, I, too, live in Minnesota where the law doesn't allow "AS-IS" selling except for bank-owneds.
1:57pm • #31

20 Most Recent Comments Displayed Show All


Spam prevention

To submit the form,
drag the leaf to the circle on the side.

Image?id=9ef70b93cbabb2bcda251afae954c6793479964a Image?id=591a0f65f84a3feff8800674438fed210ed5a4f0 Image?id=f571bacf26071aca5fe6f5ee8f65062941582ca3 Image?id=185bed3380800080aec28e5f0d7d71d0be3dfd70 Image?id=74325ebddfdd832115daf18292368febf943cec3

Accessibility option: listen to a question and answer it!

Type below the answer to what you hear. Numbers or words, lowercase:
Leave a response…

(optional)
Spam prevention

To submit the form,
drag the eye to the circle on the side.

Image?id=94f4f3113af2faa1b64407713ac8b747e28c7616 Image?id=0c1e4d8546a6b4bb2c2cb0f5aec687a0de6fa596 Image?id=433951e5336c285284d3c9f46506ed53e7158aaf Image?id=76313580be08c9565a507df9c9420d21f786b688 Image?id=7fa3da838e4ff236bf391af77805748e4813b8d2

Accessibility option: listen to a question and answer it!

Type below the answer to what you hear. Numbers or words, lowercase:
 
William Feela Realtor 651-674-5999 No. Branch,MN, Whispering Pines Realty (WHISPERING PINES REALTY) Rainmaker_large

William Feela Realtor 651-674-5999 No. Branch,MN

Whispering Pines Realty

North Branch, MN

More about me…

WHISPERING PINES REALTY

Address: PO box 610, 29995 Julliard Street, North Branch, MN, 55056

Office Phone: (651) 674-7449

Cell Phone: (651) 674-5999

Email Me

Buying Real Estate should be fun...if you are looking in Chisago and Pine counties or anywhere in Minnesota, call me and let me show you that Buying a home is not all pain.


Listings

Links

Archives

RSS 2.0 Feed for this blog