REO's Still Required to Disclose!

By
Services for Real Estate Pros with Escrowcoord.com

Agents Rule!I bet there's a lot of you out there who have all but given up on obtaining disclosures from the bank.

I was cruising around the California Association of Realtors website and came upon some GREAT information on REO Disclosure Requirements as well as what to do if you cannot obtain disclosures from a Bank.

 To locate the REO disclosure chart go to CAR website and type in REO Disclosure Chart into the search field.

 To locate the Q&A on REO Transactions (a little tricky to find, but be patient).

Type in REO Transaction in the search field

Select  "Legal Articles by Category"

In the small gray box to the mid right of the screen, select "REO Transactions"

The bottom line is that even though a property is bank owned does not release the owners nor their agents from providing certain required state and local disclosures.

Now for each state, I'm sure it's different so be sure to check with your association to find out what the minimum requirements are for REO's.

CAR's response on what to do if the bank declines to deliver disclosures? Check it out...

 •1.)   Agents should still deliver certain disclosures to the buyer even if the bank declines to sign. For example the lead base paint disclosure and the earthquake, lead and toxic mold disclosure booklet.

•2.)   Document your attempts at obtaining signatures from the bank

•3.)   Notify the buyer that they are purchasing the property against the advice of the agent and without complete seller disclosure.

 I believe agents must maintain control of what they know they need in order to protect the buyer, seller and themselves from future litigation. The banks DON'T.

 After all, we've been the business of buying and selling homes in our area much longer than most of the asset managers.

 Why are we allowing them to call the shots when it comes to disclosure and us possibly losing our license and getting sued?

 Both listing and selling agents need to create systems TOGETHER and set limits on the behavior of banks by making them more responsible for non-disclosure.

 Let's protect what we know is the right way to do business!

Comments (2)

Debby Porter
Soultions Real Estate - Gilbert, AZ

REO Disclosure Requirements as well as what to do if you cannot obtain disclosures from a Bank.

Let's protect what we know is the right way to do business!

 

Thank you Diana. I am going to look on the website for Arizona to see if we have that information.

I believe with more knowlegde, I will serve my clients better.

Oct 15, 2008 05:45 AM
Diana Turnbloom
Escrowcoord.com - Martinez, CA
The Leading Expert in TC Services & Education

Debby-Thanks for your comment. It occured to me today how much we as an industry are letting the banks control what we know is the right way to do business.

Oct 15, 2008 06:51 AM