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How To Stay Out Of Trouble With Disclosures

By Adam Brett

Real Estate Agent with The Adam and Eric Group 01499486

January 23, 2008 05:54 PM

I am fortunate my brother-in-law is a Real Estate E&O lawyer so I get a lot of tips how to stay out of trouble.

One of the best had to do with disclosures, the #1 cause of lawsuits.

concrete crack

There are 2 rules:

Disclose everything.
Do not use descriptive words

#1 is pretty straight forward.

#2 means some things are open to interpretation and the seller and the buyer may differ in opinion on the disclosure.

For example: There is a crack in the concrete driveway and the seller discloses, "Minor cracks in driveway." This is not a good idea as what you deem minor, the buyer might see major. You are safe with "Cracks in driveway."

Same goes for "small leak", "tiny holes in walls", or just about any other DESCRIPTIVE words you can think of. Leave these words out and the disclosures not only become easier to fill out, they could even help you in court.

Let the buyer determine for themselves the severity of the disclosure and you will avoid the biggest pitfall leading to litigation.

Adam Brett
RE/MAX NOC
Fullerton, CA
714-496-8116
800-977-ADAM

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Nancy Brenner

Referral Associates of Georgia, Inc. - Roswell, GA

Roswell Georgia Real Estate Agent

Very good and sound advice, Adam. Sometimes less is more.

Jan 23, 2008 06:02 PM

Susie Blackmon

Ocala, FL

Ocala, Horses, Western Wear, Horse Farms, Marketing

Hi Adam, exposure to attorneys is a good thing. My background consists of too many years in law offices, but attorneys are like realtors - - when you need one, they are worth their weight in gold. Thank you for the disclosure tips.

Jan 23, 2008 06:05 PM

Tony & Darcy Cannon

Aubrey and Associates Realty - Layton, UT

The C Team

Adam, Great advice, thanks for the information!

Jan 23, 2008 07:30 PM

Frank Schulte-Ladbeck

Frank Schulte-Ladbeck Professional Real Estate Inspections - Houston, TX

Oh well, what are we inspectors to do? The State of Texas insists that I report on a crack being major, moderate, or minor. So am I left holding the bag? I will blame the state. When I have done pre-sale inspections for the seller, I have suggested to them that once they find out, technically they have to disclose an item, but I do tell them to leave off the descriptors, because it can cause issues.

Jan 23, 2008 08:42 PM

Julie Chapman

Julie Chapman Broker - Ormond Beach, FL

Daytona Beach Shores, Florida

Adam,

Great post......sometimes we forget the KISS theory when working...............

Jan 23, 2008 08:51 PM

Terry & Bonnie Westbrook

Westbrook Realty Broker-Owner - Grand Rapids, MI

Westbrook Realty - Grand Rapids Forest Hills MI Re

nice little post that could have big results thanks.

Jan 23, 2008 09:18 PM

Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239

Real Estate One - Commerce, MI

Michigan homes for sale ~ yesmyrealtor@gmail.com

Thanks for the great tips. I will have to remember no small, large, medium, tiny, minor, or major

Jan 23, 2008 09:24 PM

Mike Jaquish

Realty Arts - Cary, NC

919-880-2769 Cary, NC, Real Estate

Such a small point, but really a great point.

Let the Buyer determine how major or minor a disclosure item is.

Good Job!

Jan 23, 2008 10:01 PM

Frank Rubi

Frank Rubi Real Estate, LLC - Metairie, LA

FrankRubiRealEstate.com

Adam, I have the seller fill out their disclosure in there writing. Good points, anything to protect all involve is always smart business practice.

Jan 23, 2008 10:56 PM

James Downing - Metro DC Houses Team REALTORS®, CRS, GRI, ABR,MRP, MilRes

Real Living | At Home - Washington, DC

When Looking to Buy or Sell - Make the Right Move

EXCELLENT point! I once saw a disclosure that said - minor water leaks in basement during extreme rain.

So is Minor about water in your basement? What is Extreme Rain? A hurricane? or an everyday summer pour-down?

Jan 24, 2008 12:25 AM

Adam Brett

The Adam and Eric Group - Fullerton, CA

The Adam and Eric Group, Fullerton's Finest

Frank,

If your state mandates you include the severity of a disclosure - don't know what to tell you. You might be able to stay factual - 1/8" crack.

Thank you everyone for your comments.

Jan 24, 2008 03:37 AM

Birmingham Alabama Real Estate, Stephen Wolfe

LivingInBirmingham.com - Birmingham, AL

Adam these are some good points and some good tips. We can never be to careful. We livein a highly letigous society that is just looking for a reason to sue sometimes. By avoiding the little mistakes we can avoid some big payouts!

Jan 24, 2008 08:10 AM

Karen Gentry>>Charlottesville, Virginia Real Estate Professional

RE/MAX Excellence-Charlottesville VA - Charlottesville, VA

Less is more was never so right. Thanks for the post.

Jan 24, 2008 09:42 AM

Jennifer Esposito

JenRan Realty, LLC - Woodstock, CT

Good points-just stick with the facts.

Jan 25, 2008 08:07 AM

How To Stay Out Of Trouble With Disclosures

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