permits: What is an agent supposed to do about Permit issues? An expert's opinion.
- 12/14/09 08:40 AM
There is always a question about what does an agent have to do regarding disclosing permit issues. If you are in a market with older homes, you can be pretty sure that there is much remodeling been done ..... much of it done WITHOUT a permit. California and several other states have used their lobbying clout to get a law passed where the agent is not legally required to go off-site to investigate the status of permits. Agents will argue that they have no responsibility anyway because they are not contractors; how would they know about permits. If you believe that, … (1 comments)
permits: Big legal risk to agents - Read my blog just before this one
- 09/25/08 02:42 AM
Just had an agent comment on my prior blog: AGENT BEWARE! She had attended a class where the instructor raised the same issue I had. But, his suggestions was for the agent to go to the govenmental agency and put together a package of permits for the buyer: NO. NO & NO AGAIN. Several problems with this approach: You many not get all the permits. Cities are notorious for being sloppy and in most jurisidictions, have governmental immunity, meaning they can't be sued for negligence Permits are complicated. If you are adding a master bedroom, it is not common to have … (4 comments)
permits: You have to do more than just disclose - How to get sued
- 09/25/08 02:11 AM
In some of my recent blogs, I discussed the idea of disclosures. Forgive me for not being clear. I have been surpised that so many agents commented that in their state the seller has to disclose. This was not my point. So, let me try again. There is a major difference between disclosure and the BUYER's AGENT'S duty to: Point out issues which could negatively affect the buyer Discuss ramfications of the issue in case the buyer ignores it Here's an example. You are the buyer's agent and show a house that has been extensively remodeled. The seller discloses that they … (11 comments)
permits: More mistakes agents make when selling income property
- 06/02/08 01:47 PM
The biggest thing is the most investors are not really sophisticated. And, unless they have a professional propety manager (and that isn't always the case), it is very difficult to get the documents you need to property analyze a property. One of the mistakes is to wait until the seller provides the information to realize what you don't have. So, I suggest two things: 1) Add a clause that states that the Buyer due diligence period (what it is called on the commercial side) begins upon reciept of the seller disclosures. So, if the seller is slow in dribbling the discloures … (1 comments)
permits: The downside of Pre-closing Walk Through Inspection
- 05/08/08 06:09 PM
As you know, just prior to close, most real estate contracts include a clause that allows the buyer to make one last inspection of the property. The main reason for this inspection is to insure the house is still there but most of all, it is to verify that any repairs that were done, were completed and done correctly. And, if the contract addresses this issue, it normally states that these repairs need to completed prior to closing I have several issues with this. Problem 1: First, if you do the inspection too early before close, the seller will probably not have … (2 comments)
Guy Berry is a frequent expert witness in real estate litigation and an accomplished trainer in real estate law and contracts. In addition he has been licensed for 30 years as an agent and managed large offices, including Coldwell Banker and Century 21.
There is always a question about what does an agent have to do regarding disclosing permit issues. If you are in a market with older homes, you can be pretty sure that there is much remodeling been done ..... much of it done WITHOUT a permit. California and several other states have used their lobbying clout to get a law passed where the agent is not legally required to go off-site to investigate the status of permits.
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