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Disclosure Statements

By
Real Estate Agent with Associate Broker at Berkshire Hathaway Home Services Georgia Properties 256152

I know, they taught you in real estate school that you had to have a disclosure statement to complete the transaction. You really don't.

Commercial transactions don't even have a disclosure form. They use due diligence periods the way they should be used. An inspector will turn up deficiencies that don't exist. They are certainly more detailed than a homeowner who can't change his own air filters will provide. The purpose of due diligence periods is to cut down on paperwork. Now we have a due diligence period AND a finance contingency. I suppose I can understand that it provides less freedom to escape for buyers in a rising market, but it is still a little redundant.

If the property has been a rental for three years, and the renter was a knuckle dragging bumb, he might have put a bomb in the water heater, for all the owner knows. Why would he want to assume the liability of filling out a disclosure. Just give them a list of what stays, and let the inspector find the bomb.

I really don't trust disclosure statements to do anything other than put the seller in liability.

Tracy Oliva
West USA Realty - Arizona - Fountain Hills, AZ
The Oliva Team Arizona Agents

Good Morning and this is some great Info for all in the business, keep up the good work.  E

May 05, 2014 10:29 PM
Richard Weeks
Dallas, TX
REALTOR®, Broker

In Texas the owner of a commercial property is not required to make a disclosure.  However our state association has provide one for voluntary use.  You can never get in trouble by over disclosing.

May 05, 2014 10:36 PM