At Lucas Real Estate, we understand the importance of full disclosure in real estate transactions. Whether you’re a buyer or seller, knowing what to disclose and when is crucial to a successful and ethical transaction. In this article, we delve into the intricacies of disclosing prior reports and repairs, shedding light on common misconceptions and providing valuable insights to both buyers and sellers. With our expertise and commitment to transparency, we strive to empower our clients with the knowledge they need to make informed decisions in the real estate market.
In the world of real estate, transparency is paramount. Both buyers and sellers rely on accurate information to make informed decisions, and one crucial aspect of this is the disclosure of prior reports and repairs. Despite the common adage “when in doubt, disclose,” navigating this terrain can still be challenging. Here, we break down some common questions and misconceptions surrounding disclosure requirements in real estate transactions.
Do previous defects have to be disclosed if they have already been repaired?
Yes. Even if a problem or defect has been repaired in the past, it must still be disclosed to potential buyers. The Seller Property Questionnaire (C.A.R. Form SPQ) explicitly asks sellers to disclose any repairs or alterations made to the property. While a repair may have been addressed, buyers have the right to know about past issues that could potentially resurface.
Do sellers and/or agents have to provide copies of inspection reports or other documents to buyers?
Absolutely. Any reports, inspections, or documents relating to the condition of the property must be disclosed to the buyer. Attempting to summarize or withhold information from these documents is risky and could lead to legal repercussions. Providing copies of these documents ensures transparency and allows buyers to make fully informed decisions.
Does a disclosure have to be made regardless of how long ago the repair took place or how old the document is?
Yes. There is no statute of limitations on disclosure requirements. Sellers and agents should disclose any relevant information, regardless of when the repair occurred or how old the document is. While older reports may have less relevance, buyers have the right to access all available information about the property’s history.
Do real estate licensees have to keep documents relating to the property?
Yes. Real estate licensees are required to maintain records pertaining to transactions for at least three years after a transaction closes. This includes any documents or reports related to the property. While sellers may not have a legal obligation to retain these documents, agents must ensure that all relevant records are disclosed to buyers.
Is a listing agent or seller required to disclose an inspection report obtained by a previous buyer, even if it contains language limiting its use?
Yes. Despite language in inspection reports limiting their use to the individual who paid for the inspection, sellers and agents are still required to disclose these reports to subsequent buyers. While such disclaimers protect inspectors from liability, they do not exempt sellers from their duty to disclose material facts about the property.
In conclusion, navigating the disclosure of prior reports and repairs requires careful attention to detail and a commitment to transparency. At Lucas Real Estate, we prioritize honesty and integrity in every transaction, ensuring that our clients have access to all relevant information. By understanding the intricacies of disclosure requirements, buyers and sellers can navigate the real estate market with confidence and peace of mind.
– Devin Lucas
Devin R. Lucas is a REALTOR®, Real Estate Attorney and real estate Broker, specializing in Newport Beach, Costa Mesa and Orange County coastal communities, serving individuals, trustees and investors in residential real estate.
Lucas Real Estate – Attorney Devin Lucas and CPA Courtney Lucas – are experts in residential real estate sales in Newport Beach, Costa Mesa and coastal Orange County, tax considerations, Trustee representation, family sales, and California’s Proposition 19.
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Lucas Real Estate
REALTORS® and related Real Estate Law & Tax Considerations
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lucas-real-estate.com | [email protected] | BRE No. 01912302
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2901 West Coast Highway Suite 200
Newport Beach | California | 92663-4023
Lucas Real Estate is a unique full-service residential real estate brokerage providing related residential real estate legal services and real estate tax considerations and planning, based in Newport Beach, California. | Devin Lucas is a licensed California Real Estate Attorney, Real Estate Broker and REALTOR® | Courtney Lucas is a California licensed CPA and REALTOR®
Photo by: Beatriz Pérez Moya
sources: CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). All rights reserved. April 28, 2024. https://www.car.org/-/media/CAR/Documents/Transaction-Center/PDF/QUICK-GUIDES/Quick-Guide—Yes-You-Have-To—Disclosing-Prior-Reports-and-Repairs.pdf
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