Do I Have to Disclose Everything About a Home and What if I Don’t?
I probably hear this type of question on about half of the listings in Columbus Ohio, "do I have to disclose problems about the house and what happens if I don't?" There was a recent article in Ohio realtors.org the talked about the questionable practice of avoiding disclosing certain defects or negative inspection reports to potential buyers and buyers agents. I'm sure there are many listing agents that have chosen to be unethical by not disclosing to buyers known problems or defects about house however, this is illegal and if the seller should request that the listing agent keep silent about such defects, the listing agent should go to their managing broker and advise the seller to speak to their real estate attorney about the implications of not disclosing certain defects. Furthermore, the listing agent should simply not take the listing at all.
What about listing agents that recommend to their sellers that buyers be informed that they are not satisfied with the inspection report and that the seller will simply release the buyers from the purchase and sale contract with no questions asked? The idea behind this is if the buyer doesn't ask, the listing agent and seller can plead ignorance. Again, this is an unethical practice that could be in violation of some severe implications later on.
While this is all well and good, what happens if the seller chooses not to disclose certain defects about the house to the listing agent? This can affect the buyer down the road but if the listing agent has no knowledge of any defects it may alleviate any pressure that the listing agent may have. However, the listing agent should go over the inspection carefully which can result in knowledge of any major defects or hazards that the seller may not want to take care of. If any issues I later discovered by the buyer of the property after closing sellers can become subject of litigation as well as the listing brokerage and the agent involved. In the end, it will probably be discovered that there was knowledge on the listing agent and the seller side causing fraud and hidden disclosures.
The best thing to do is keep an open, honest and ethical approach for listing agents, buyers agents and sellers. Keeping things hidden can only cause problems not only during the purchase and sale contract but for years afterwards.
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