In our Beautiful area around Greater Victoria BC, we call paradise, there are some things that make me wonder why, to change things here sometimes feels like an uphill battle, so I turn to you for answers.
In The Victoria Real Estate Board we now have a Policy that requires us (the listing agent) to attach to our listings a title search and a property condition disclosure statement. These attachments are accessible by any other member of our real estate board at any time at their choosing.
By way of this new policy we are making these documents available to other realtors, as such any client of a Realtor may request to obtain this information from their respective agent, regardless if the client is at all interested in the property.
My Concern with this is that although both title searches as well as the disclosure statements are important parts of the selling process, there is a time and place for these documents to become part of the contract.
It would appear to me, that this potentially causes privacy issues, potential mis-use of information issues, and does not serve the sellers in all but very few instances.
We know that title searches can be obtained by anyone about any property but the time it takes and the cost involved ($10 to $ 15.00) tends to deter most instances of potential mis-use. Now this information becomes available for free and instantly.
Title searches may convey information that may indicate personal and or financial issues to what may be at the advantage to a buyer in the negotiations process. Yes the information can be obtained by the buyer independently, but is the seller required to present it proactively ?
A property disclosure statement may offer the same advantages to buyers, but could also deter buyers from even making an offer all together due to confusing or unclear information being provided, again is the seller obligated to provide this information and possibly loose potential buyers, before being able to clarify the potential none-issue?
At the time of the listing we are clearly working on behalf of the seller, is it in the sellers best interest to offer this information this early in the process of a prospect becoming a buyer?
What is next, attach all the strata documents, Form B (BC only), Financial statements for businesses, lease and rental agreements, all the covenants? How about asking Buyers for their Bank statements, proof of ability, agency commitment.
Don't get me wrong, I am convinced that the title and disclosure information should be provided, but is it right to do so before a contract exists? At that time with using proper clauses, all parties can and will be protected from being bound to a contract that makes no sense.
I am contemplating to formally challenge the Victoria Real Estate Board on the further implementation of this policy that requires us to submit both a title search and a Property Condition Disclosure within very limited time with the listing on the Realtor component of the MLS system (it is not directly available to the general public).
Penalty of Breach of this policy include, removal of the listing, reprimand of the agent and or agency, and possibly suspension from the membership to the board, regardless of what our instructions are from our clients. What I call this the Big Stick approach.
I am very curious what other think about this both as Realtors as well as members of the general public, so I would love to read and review your feedback. Am I wrong to think that this policy (eventhough I understand why they came up with it) is potentially causing more problems than what it intents to solve?
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