Disclosure of Buyer’s Inspection Information

By
Commercial Real Estate Agent with RE/MAX West Realty Inc., Brokerage (Toronto)

Disclosure of Buyer’s Inspection Information

Question:

Your listing falls apart on inspections (home, septic and well) and the buyer ‘s agent sends you a list of the issues at your request. It’s a long list worth about $100,000  of known issues, not including the unknowns.

Are you as the Listing Agent obligated to disclose those issues to the next buyers?

Answer:

No, you are not obligated to disclose. In fact, you can’t make that disclosure without permission from your client, the Seller.

If you did so, without permission, this would constitute a breach of your fiduciary duties and release the Seller from any obligation to pay your commission.

Comments (2)

Bob Ratliff
Robert Ratliff Realty - San Antonio, TX
"Sold with Bob"

 Owners certainly should list in the Sellers Disclosure and new defects found. It can be a tricky situation for all involved. Disclose, disclose, disclose but don't breach fiduciary and don't break the law by knowing defect aren't being disclosed.

Nov 26, 2019 01:39 AM
Brian Madigan
RE/MAX West Realty Inc., Brokerage (Toronto) - Toronto, ON
LL.B., Broker

yes, Bob that can be risky

Nov 29, 2019 06:50 AM