CLUE Reports-Did You REALLY Need One?

By
Services for Real Estate Pros with Escrowcoord.com

The era of CLUE reports has finally ended. Disclosure Source, JCP and other discloure companies will soon no longer offer these reports. How will it affect those agents who order them as part of their disclosure package? Not much really!

A CLUE report was a little add-on report to the Natural Hazard Disclosure (required for all California properties) that identified any insurance claims. The cost was around $25.00 and as of late required wet signatures on a request form from the seller (a real pain in the you-know-what!). 

When a buyer purchases fire insurance for their new home (a requirement for all lenders), the first thing the insurance agent will do is to pull up a database that shows a history of claims for that property. They want to be sure they are not inadvertently insuring a property that has a high risk of future claims (floods, fires, etc.). The buyer upon request should be able to obtain a copy of this report.

Additionally, on the Seller Statutory Disclosure and the Seller Property Questionnaire, the seller must disclose if they are aware any insurance claim in the last 5 years.

Finally, CLUE reports are NOT a requirement of the California purchase agreement contract.

The CLUE report was an expensive duplication of efforts! I'm happy to see them go! 

Comments (1)

David Gibson CNE, 719-304-4684 ~ Colorado Springs Relocation
Colorado Real Estate Advisers LLC - Colorado Springs, CO
Relocation, Luxury & Lifestyle residential

Diana,
Interesting that the CLUE reports are going away. Some buyers and investors found them useful.

Nov 11, 2015 11:43 PM

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