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Should Listing Agent's Disclosed Known Material Fact Upfront or Not? read on

By
Real Estate Agent with Keller Williams Realty Cityside

This past week end I called a Listing Agent on her listing for showing instructions as specified on MLS. Listing Agent told me property is available and in good conditions. Upon showing the property my buyer's love it and we made an offer on Sunday which was presented to listing agent same day. on Monday pm, listing agent told me that the bank aquired the property thru a bad situation in the house, which might affect my buyer feeling from proceding with the offer.

Listing Agent did not disclosed the know  fact  in MLS , should't the agent disclosed such fact on MLS or told me when I inquired about the listing the first time? I felt she hads mislead us and wasted out time because after disclosing the situation to my buyer's they walk away from the offer and want to see more homes.

Your comments are welcome

Posted by

Jay Badru

Certified REO Specialist

Keller Williams Realty Cityside

Comments (10)

Tony & Darcy Cannon
Aubrey and Associates Realty - Layton, UT
The C Team

Jay, I do think that the listing agent should let us know when the property is bank owned so that we can prepare the buyers for the process.  I don't know the circumstances of the bad situation, but if the local disclosure law requires it, it has to be disclosed.

Aug 25, 2008 05:54 PM
M. Suzi Woods (Gravenstuk)
NOW Sharing the life and spice of the GC one day at a time - Grand Canyon, AZ
Suzi Woods, Prior Independent REBroker in MS

In my opinion, it depends on what the situation is and if the material value of the propery is at risk because of the situation. In our area, we present "Sellers Property Condition Disclosures". If the disclosures are not available for public viewing at the listing, or attached to our MLS listing, then the Buyer Agent normally asks for the SPCD before making an offer. Of course we can make an offer subject to receiving the SPCD. Usually, I will call ahead of time to have the SPCD emailed or faxed to me prior to viewing the property--if planning time  allows. The SPCD is a required disclosure in MS, just as "Working With a Real Estate Broker" is required of both LAs and BAs.

If your buyers want to see more homes, that could be a good thing.

PS: I just spent a good chunk of time reviewing both license law and SPCD. The manner of death, and or violence in death is not a material fact in Mississippi.  Agents are not required to give disclosures regarding deaths-in Mississippi.

That doesn't mean that an agent cannot do so; just is not required to do so.

Aug 25, 2008 06:00 PM
Chip Jefferson
Gibbs Realty and Auction Company - Columbia, SC

It should have been written in the property disclosure. Assuming your state has one. But either way it should have been public relevant disclosure.

Aug 25, 2008 10:45 PM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

If the bad situation was an adverse material fact, it should have been disclosed up front. My philosophy is when in doubt, disclose. You can't go wrong by disclosing, but you can get in a whole lot of trouble by not disclosing something that should have been disclosed.

Aug 26, 2008 12:25 AM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA

The agent must disclose the adverse fact.  Any known knowledge.  You should be consulting your broker and a real estate attorney.

Aug 26, 2008 12:32 AM
Jay Badru
Keller Williams Realty Cityside - Atlanta Naval Air Station, GA
Certified REO/Short Sale/Foreclosure Specialialist

Thanks Suzi,

The property is a REO and been sold "AS IS"  without disclosure, but the situation which 'am not sure I can revealed in this forum is a case of "Life ending situation"  I check with my local board, I was informed that it should have been disclosed, and MLS agreed that disclosure is warranted at which point should it be diclosed is the question.

 

Aug 26, 2008 10:30 AM
D H
Beaverton, ON

By all means, the listing agent should keep all information updated. Even if this is not written in the rules, it should be done for professional reasons. What has this done to the buyers perception of the real estate industry?

Aug 26, 2008 10:32 AM
Jay Badru
Keller Williams Realty Cityside - Atlanta Naval Air Station, GA
Certified REO/Short Sale/Foreclosure Specialialist

Thanks Jim,

MLS agreed with your point, "Any Known knowledge" should be disclosed. My broker is currently working on it. Also please look at my responce to Suzi

 

Aug 26, 2008 10:33 AM
Jay Badru
Keller Williams Realty Cityside - Atlanta Naval Air Station, GA
Certified REO/Short Sale/Foreclosure Specialialist

Thanks Durham Region For Sale By Owner,

My thought in deed.

 

Aug 26, 2008 10:47 AM
Tim and Pam Cash
Crye-Leike (Sango) - Clarksville, TN
Real Estate Professionals - Clarksville TN

Jay, the selling agent should have disclosed this upfront

Aug 26, 2008 11:44 AM