Disclose, Disclose, Disclose When Selling or Leasing your Property
July 16th, 2009 categories: General RE Info, Tips For Buyers, Tips for Sellers
Why is it Important?
Sellers/Landlords and Real Estate Agents are obligated to disclose to prospective Buyers/Tenants any material fact that affect the value of the property or has any condition that may affect the health or safety of the future occupants. Many sellers/landlords/agents take disclosures lightly and it can come back to haunt them even years after the transaction closed.
Just a few of the many things that MUST be disclosed:
Lead-Base Paint: Properties built prior to 1978 “any condition that caused exposure to lead from lead-contaminated dust, soil or paint that is deteriorated or present in accessible surfaces or surfaces that rub together, like doors and windows”.
Mold: Any potential source of moist that could have created mold: leaks, floods, broken pipes. Even if it can’t be seen mold may be hidden behind dry walls or under carpets. There was a case a few years ago on a Rental where the Tenant’s kid was highly allergic to mold and after moving to the property the child got very sick. The Tenants found out that some time prior they moved in the property was exposed to mold and since it was not disclosed they rented the property. The story ended with the Tenants suing the Landlord for failure to disclose.
Structural Issues:A property went under contract and the general inspector found a crack in a foundation that looked suspicious and recommended an Structural Inspection. The Buyer cancelled the contract and the property went back on the market. The seller didn’t think it was necessary to disclose the fact and sold the property to another buyer. The new Buyer’s Inspector didn’t notice the problem and the buyer went ahead a purchased the property, to find out a few months later that there was a huge Structural problem. Both the Seller and the agent for the Seller were involved in a legal case that they lost. They knew there was a problem and failed to disclose it.
Known Code Violations and non-permitted additions/improvement: the main problem with non-permited additions/improvements aside from the safety issues is the fact that if the new buyer needs to pull permits and the city finds out there are code violations it can open a can or worms. The result can be that the addition must have to be permitted (a nightmare) or removed.
Chinesse Drywall:this is our newest concern…during the construction boom many homes were built with Drywall imported with China.
Disclose Facts not Opinions unless you are an expect. A little crack that looks insignificant may be just a crack or can be the expression of an structural program. As the author of an article I read today says: If you have to ask if you should disclose it, DISCLOSE IT!
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Chinese Drywall Update
May 1st, 2009 categories: General RE Info, Tips For Buyers, Tips for Sellers
According to recent news reports, there may be anywhere from 36,000 to 100,000 homes across the country built between 2003-2008 that may contain tainted drywall imported from China. Drywall commonly used for interior walls and ceilings in homes is usually manufactured in the U.S. however, due to several hurricanes and the building boom, a shortage of drywall occurred. To stay on schedule many builders had to order drywall from outside the U.S. Unfortunately, this resulted in some tainted drywall being imported from China. In March, the Florida Department of Health reported that recently analyzed drywall samples from China emitted a sulfur smell when exposed to heat and moisture. The department released the analysis of samples comparing American and Chinese drywall, finding that the Chinese samples gave off the sulfur odor.
Florida’s health department is currently analyzing the potential hazards from the tainted drywall, which potentially includes damage to electrical wiring, air conditioning parts and other appliances due to the presence of sulfide gases in homes built with the product.
Florida is not alone. Media reports indicate that drywall imported from China was also used in homes in other States, including Louisiana, Georgia, Mississippi, North Carolina, South Carolina, Texas, and Virginia.
Legislative Action
On March 30, 2009, U.S. Sens. Bill Nelson (D-FL) and Mary Landrieu (D-LA) filed two bills relating to this issue in an effort to press the Consumer Product Safety Commission (CPSC) for a recall of Chinese-made drywall based in part, on findings by a Florida home builder and state officials who have confirmed the presence of sulfide gases in homes built with the drywall.
S. 739, the Drywall Safety Act, would require the CPSC to work with federal testing labs and the EPA to determine the level of hazard posed by certain chemicals and unidentified organic compounds found in the drywall. The legislation also calls for an interim ban on drywall imports until federal drywall safety standards can be created to protect consumers in the future. Nelson and Landrieu are pushing for a recall in hopes of jump-starting a process to help affected homeowners with the costs of repairs or replacement. Their legislation would make manufacturers responsible for these costs. According to news reports, a companion bill was introduced in the U.S. House of Representatives by Rep. Robert Wexler, D-Fla.
U.S. Rep. Robert Wexler (D-FL) also sent a letter to Governor Crist requesting the Governor declare a state of emergency over this issue. A spokesperson for Governor Crist has stated that he is not clear what practical effect a state of emergency declaration would have at this time.
Senate Resolution 91 can be found here.
Senate Bill 739 can be found here.
Senator Nelson’s news release on the legislation click here.
For video on Congressman Wexler’s actions, click here.
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