Disclosure is ALWAYS Best, No Matter Your Role
As my kids grew up, I always told them that if they had the “Uh-Oh” feeling when they thought about doing something bad or were in different situations, they should trust that instinct. The same advice can be applied to real estate transactions - whether you’re the buyer, seller, agent, or lender. If you stop to think, “Hmmm… maybe I should say something…” then you should disclose it.
Besides, NOT disclosing is the main reason for lawsuits, according to an article in the LA Times on October 4, 2009.
One-third of the respondents say disclosure issues are a “significant source” of their clients’ beefs, and nearly 45% believe the topic will become an even bigger issue over the next two years.
Water intrusion and the mold problems that often follow are a major issue. Disputes concerning structural defects are also extremely common. And issues concerning septic and sewer systems, misstatements about square footage and “as is” clauses also generate more than their fair share of legal problems.
I once sold a house and five months later received a phone call from the selling agent complaining that water was entering the garage. Fortunately, the home inspector specifically noted that on the day of the inspection it was raining and there was no pooling and water entry into any part of the domicile. We found later that the buyer had removed the water diversion pipes.
No matter what, I always advice my sellers to disclose, just as I disclose findings that come across my email, desk, ears, or eyes. I want to be able to sleep at night!
