What would you do? As realtors we have enormous responsibilities. We have a duty to disclose information which is substantial or potentially substantial to the decision making process of our clients. Of course, if the information is confidential to our client - there is a line which isn't to be crossed. But what happens when the situation or information is blurry?
Many time I am asked by our realtors about information they have on a current listing. Some examples may be - there was a suicide in the home several years ago - do I need to disclose that to potential buyers? A neighbour across the street has a habit of playing his music loud ? A member of the family died naturally at home - does that need to be disclosed?
Certainly there are many examples which can be relayed.
If I am representing a buyer, I have to be very diligent with my work. I need to ask questions. I need to find out what is important for my buyers in living in a neighbourhood. Are they overly sensitive to noise? Are they concerned with crime? A good habit many buyer reps get into is to canvas the street on behalf of their buyers. Meet the neighbours and ask them about their experiences living in the neighbourhood. Any problem houses of note? Some realtors go as far as connecting with the local police department to get a report on crime in the area and problem houses. Any buyer rep worth his or her salt will go the extra mile for their buyer. It is one of the many strong reasons to enter into a buyer representation agreement.
As a buyer rep, I wouldn't stop with canvassing the neighbours or police department. I would directly ask the seller, through their realtor of any problems or problem houses they know of in the immediate vicinity - and I would make the request in writing.
As a listing representative, I need to know what is important to disclose to the public. Information that would have a direct bearing on the value of the property being marketed. Issues like known structural problems or pest infestation are natural to disclose - but what about some of the not so certain issues?
A noisy neighbour across the street certainly doesn't have any long term effect on the value of the property being sold, a natural death in the home shouldn't either. But what about a suicide or murder? The stigma may cause problems for many.
When in doubt, disclose all known information to the people you are representing and let them decide. As a coop broker, ask a lot of questions. And when in doubt - ask yourself this question - if I were buying this property would I want to know?
Good advice Ken, always disclose.
Always Always Always!
It just saves us all problems down the road.
Great post, great reminder for everyone.
Best
Marty Green
Posted by: Marty Green | March 19, 2011 at 06:40 PM