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Should You Disclose a Bad Neighbor When Selling Your Home?

By Sally Dunbar

Real Estate Agent with Lyon Real Estate, Fair Oaks CA (Sacramento Area) DRE# 00809499

April 14, 2014 09:52 AM

angry guy When you sell your home, should you disclose a bad neighbor? Afterall, you must disclose all problems.

But what do you mean by bad? Bad, like he yells at you for playing your music at 11PM? Bad in that he called the cops on your barking dog? Bad in that he is Justin Bieber and he speeds through your neighborhood at night?

seller filling out a Transfer Disclosure Statement when selling their home Seriously, this question comes up a lot. To sell your home, you must fill out a Transfer Disclosure Statement, answering a gaggle of questions about problems your home has had, or any condition that may materially effect the value of the property, including nuisances in and around the neighborhood.

What about the guy you can't stand who lives next door? To you, he is a complete nuisance, but do you disclose what a jerk he is to the new buyer?

According to Steve Beede, Sacramento Real Estate Attorney, it depends on whether his level of nuisance is PERSONAL or PUBLIC. Youmust disclose a PUBLIC NUSANCE, but not necessarily a private one. If you are the only one who fights with him, and you have an ongoing personal dispute with him, probably not. That sounds personal (and honestly, may YOU are the problem!). But if his nuisance effects others, and is not isloated to you personally, then you probably do need to disclose.

There is a recent case, Shapiro VS Sutherland, where the buyer discovered that his new problem neighbor had always been a problem, and he discovered it was bad enought that the former seller had called the cops repeatedly over ongoing disputes. In that court case, the buyer won against the former seller, including court costs and attorneys fees.

Criminy. That was an expensive ommission.

So if it seems like the scummy neighbor is a bother to more than just you, disclose. Way better to lose your buyer now than the court case later!

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William Feela

WHISPERING PINES REALTY - North Branch, MN

Realtor, Whispering Pines Realty 651-674-5999 No.

I have not seen that question on our disclosures.

Realistically, I would be sending the client to the proper authorities for them to get info on the neighborhood.

Apr 14, 2014 10:26 AM

Tammie White, Broker

Franklin Homes Realty LLC - Franklin, TN

Franklin TN Homes for Sale

That question doesn't appear in our disclosures either so I can't see a buyer winning a court case here. But never say never.

Apr 14, 2014 11:00 AM

Sally Dunbar

Lyon Real Estate, Fair Oaks CA (Sacramento Area) - Fair Oaks, CA

Fair Oaks Realtor - Fair Oaks Homes for Sale

William, I can't tell what state you are from, but my guess is you are not in California. Our disclosures ask if there are any neighborhood issues, and the basic overlay on all the disclosures is that anything that may effect the value of the home needs to be disclosed. a public nusance next door would be something a seller would have to disclose. Like if there were an unlicense dog kennel next door, you would have to disclose that, because all the barking from their business would be a nuisance.

Apr 14, 2014 11:42 AM

Tammie - Each state is different, I amsure, but again, if it is something that effects a home's value, that is what our sellers have to disclose.

Oddly I had a sex offender in the neighborhood on 3 different listings. The first time, I disclosed that to a prospective buyer. He bailed. Then the owner of the house that had rented to the sex offender, threatened to sue me for slander, claiming the sex offender was no longer there! Our attorneys said the Meghans Law disclosure was enough - that the buyer was encouraged to check the Meghan's law website for themselves. oN the next two, I did NOT disclose that.

Apr 14, 2014 11:45 AM

Barb Szabo, CRS

RE/MAX Above & Beyond - Cleveland, OH

E-pro Realtor, Cleveland Ohio Homes

Sally, this is not on our disclosure in Ohio but what a sticky widget this could become. We are behind CA so maybe we will see this change in a few years:)

Apr 14, 2014 10:19 PM

Barb - It is not a new disclosure inCA - we have had it a long time. We have a section on our Transfer Disclosure Statement, as well as our Supplemental Property Questionnaire that asks the seller to disclose any nuisances in the neighborhood or surrounding area that may materially effect the value of the property. Typically that would cover train tracks nearby, a gravel processing plant around the corner, self storage units nearby with rock bands practising (I've had that!), or an unlicensed dog kennel that has barking dogs yet isn't zoned for that. Things like that. I have had it come up where my seller hates the neighbor and has had a feud with them, but it usually is personal. There have been other instances I have read about, where a neighbor had hung really offense protest effigies off of his roof - not racial, but against the military and government etc. To ME that would be a public nuisance as it effects everyone. In CA, that would need to be disclosed, as it could materially effect the value of the property.

So it actually makes sense, if you are trying to be really transparent about what the buyer is actually getting. CA's viewpoint seems to be that the seller has to choke down the repurcussions of some blight on his property. He can't pass it on to an unknowing buyer - well, he CAN, but he opens himself to a lawsuit.

Afterall, we are the land of happy, and BUSY, lawyers!

Apr 17, 2014 12:06 AM

Should You Disclose a Bad Neighbor When Selling Your Home?

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