Think-Realty-Magazine-January-February-2019

STRATEGY

HOME INSPECTIONS

CASE STUDY: SELLER DISCLOSURES IN TEXAS

and sellers do not expect the results they receive from inspectors. Here are some guidelines I recommend my clients follow in order to be competitive during home in- spections related to real estate transactions: 1. BE PREPARED In this business, you will find some- times inspectors show up early. Be pre- pared and arrive early yourself, so you're there to greet them at the property. 2. CLEAN THOROUGHLY You know to clean the house; howev- er, to make it easy for the inspector, you may want to go the extra mile, such as cleaning or changing filters, replacing batteries in smoke detectors if needed, replacing torn screens and trimming trees near the roof. Seller disclosures are governed at a state level, so make sure you are using the right materials for the state in which your property is located. For example, in Texas, where I practice, seller disclosures are governed by Texas Property Code Section §5.008. That statute states: “A seller of residential real property comprising not more than one dwelling unit located in this state shall give to the purchaser of the property a written notice’ of material defects in the property.” Essentially, the statute asks sellers to use the disclosure form developed

If there are any items that do not pass inspection, you must decide whether to make the repairs (and not take a chance on losing a prospective buyer) or try to negotiate with the buyer. For example, you may agree to fix some items, or you may reduce the price of the home to the degree neces- sary for the repairs to be made. Being prepared for the home inspec- tion is an important step in the sales process and will give you an advantage in a competitive housing market! • costing both sides a great deal of time and money. So it is best, as a seller, to fully disclose known defects and comply with state law regarding required written seller disclosures. I have consulted with numerous homeowners over the past several years who purchased properties only to discover that serious property defects were covered up cosmetically and not disclosed. Legal actions brought by buyers in the wake of such a discovery often result in extended litigation, and even violation of the Texas Deceptive Trade Practices Act for intentional concealment of known property defects that go undisclosed.

the home, the utilities must remain con- nected, so that the dishwasher, furnace, stove, A/C, and receptacles can be checked. Also, ensure all pilot lights are lit. 4. MAKE WAY FOR INSPECTION Create easy access to the A/C, fur- nace, water heater, sprinkler systems, electrical boxes, garage, basement and attic. This includes removing brush, snow, trash cans, etc. Provide the garage remote/key as well as keys to any addi- tional buildings and unlock any gates. 5. PROVIDE DOCUMENTATION If you have replaced the roof, furnace, A/C or other item, fixed a leaky faucet, or have proof of an insurance claim, give the inspector the documentation. 6. CLEAR OUT You and your pets should not be pres- ent for the inspection. by the Texas Real Estate Commission (TREC), which is a state agency charged with generally overseeing the real estate market. That form must be delivered to the buyer “on or before the effective date” of the property purchase contract. This means, for example, you cannot have the buyer sign the purchase contract and become bound by it, and then, a week later, hand the buyer a disclosure form saying that the electricity in the house does not work. What if I fail to disclose defects? Failure by the seller to accurately disclose known property defects can result in serious legal issues for the seller. A seller can be sued for misrepresentation, fraud,

Planning for a Home Inspection (Case Study) SIX BEHAVIORS TO HELP YOU GET THE BEST RESULTS FROM AN INSPECTION.

by Gaylene Rogers Lonergan

Y

ou have cleaned both the inside and the outside of your house to

As a board-certified residential and commercial real estate attorney, I am more aware of the inspection side of your deals than you might expect. Once you sign a contract to sell a property, one of the first things you must do is provide a Seller’s Disclosure of the property con- dition, in writing, to the purchaser. Any defects in the property must be identified and the buyer must be notified on or before the effective date. In most cases, buyers also request permission to access the property for inspection.

Your inspector’s job is to report all deficiencies and/or safety violations ac- cording to code. This means everything will be inspected, not just the items identified in the Seller’s Disclosure of property condition. You may expect that the foundation, shingles, gutters, toilets, plumbing and electrical will be checked, but don’t forget that the not-so-obvious will be report- ed, such as cracks, water stains, broken windows, and improper venting. As a real estate attorney, I often find both buyers

make it attractive to buyers. You may have even gotten rid of a few things. But don’t forget to prepare for the home inspection. Whether a buyer is planning to own or rent a house, he or she will need to be as- sured of which systems work and which don’t. If the buyer isn’t happy with the outcome of the home inspection, they may cancel the contract or ask to renego- tiate the price, as the home inspection is a contingency in most contracts.

Gaylene Rogers Lonergan is a board- certified residential and commercial real estate attorney. This article is provided for educational reasons exclusively and is not

meant to be construed as legal advice. The Lonergan Law Firm, PLLC, will represent you only after being retained and that agreement is made in writing. Learn more from Gaylene at LonerganLaw.com or reach her at escrow2@lonerganlaw.com.

3. STAY CONNECTED Even if you have moved prior to selling

48 | think realty magazine :: january / february 2019

thinkrealty . com | 49

Made with FlippingBook Online newsletter