To Use A Disclosure Statement Or To Not Use A Disclosure Statement: That Is The Question

Real Estate Agent with RE/MAX of Nanaimo

To Use A Disclosure Statement Or To Not Use A Disclosure Statement: That Is The Question

I know I am opening up a real can of worms here, but how often in our careers as real estate agents has this question arisen? This article and news clip was on CBC last night and really nails the issue. I believe the rule is, "Disclose, disclose, disclose....and if in doubt: DISCLOSE".

This real estate agent and seller may have gotten away with it, but I personally think the agent should be reprimanded for a breach of ethics....Do we not have a code of ethics? I recall that we do, as I had to learn it when I took my licensing course. This kind of thing makes the rest of us look bad; untrustworthy.

Personally, I would have let the seller go as a client, rather than have my name tied to the result. There is plenty more business than just this one sale out there: All the details should have been disclosed.

On another point, the infra red tool that they mention the inspector did not have should be a mandatory tool in their tool kits if they want to be licensed inspectors. The client needs, is paying for and deserves protection. This man and his wife just bought the house, just had their baby, and now cannot live in the lower part of their home a all as a result of deliberate concealment of ALL the facts behind the original issue that was "resolved".

News flash for the seller: Band-aids don't stop hemorrhages. Too bad there isn't a lawyer out there willing to do a little pro-bono work to help this guy and his young family. I feel for them.This buyer is right: This is DISGUSTING.


Here is the link to the article and news clip. (Just wait for the short work safe commercial segment to end...It's right behind that.)Rhonda

Alan Kirkpatrick
Austin Texas Homes - Round Rock, TX
Alan in Austin


Very good post and points. I am willing to bet no one has been successfully sued for what they legally disclosed. 

Nov 08, 2011 07:55 AM
RhondaHeaslip NanaimoRealEstate
RE/MAX of Nanaimo - Nanaimo, BC

Alan and Michele, Unfortunately, that is probably very true.

Nov 08, 2011 07:56 AM
Kim Sellers
Lake Arrowhead, CA Coldwell Banker - Lake Arrowhead, CA
Lake Arrowhead Realtor - BRE#01412099 - Lake Arrow

Link doesn't seem to be working.  Always disclose that is the key for anyone involved in a real estate transaction.  I would rather lose a deal than not disclose something that will come back to bite me in the butt.

Nov 08, 2011 07:57 AM
RhondaHeaslip NanaimoRealEstate
RE/MAX of Nanaimo - Nanaimo, BC

I just went in a fixed the problem...Try it now.

Nov 08, 2011 08:00 AM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Rhonda:  There is no question about using seller's disclosure statements here in The People's Republic of Texas.  If a seller is found to have hidden from the buyer something that the seller knew about... that seller is plain and simply LIABLE.  Failing to disclose is a major offense.  I don't know of any Realtors who would not walk away from a listing if they even had a clue that the seller was hiding something. 

And... along with that seller, if it could be shown that the Listing Agent was aware of the defect, and did not make it known... they are heading for major problems as well.

Disclose, disclose, disclose !

Rhonda... as far as your comment #4... and fixing the link... woman, you've got all kinds of tools in your tool belt, doncha ?  Hooray for you.

Dec 24, 2011 03:02 PM
RhondaHeaslip NanaimoRealEstate
RE/MAX of Nanaimo - Nanaimo, BC

Karen Anne, I totally agree....disclose, disclose, disclose....not doing so is a dangerous game in this business.

Dec 27, 2011 06:43 AM