I had the pleasure of speaking to Gerry Dougherty, the principal and founder of the Dougherty Law Firm, APC, and an expert in residential property disclosure by sellers. We were discussing the situation that many sellers find themselves caught up in regarding failure to disclose information about a home, and what they could have done differently to avoid the difficulties that are inevitable in such a situation. Here’s what Gerry shared with me:
“Realtors are all taught "Disclose, Disclose, Disclose!" when advising their clients on how to properly fill out a Transfer Disclosure Statement. So why is it that homeowner’s continue to get sued for non-disclosure of defects by their disgruntled buyers? The lack of an adequate disclosure in many instances causes the disgruntled buyer to file an action seeking damages for breach of contract, fraud and misrepresentation against the seller and the realtors involved in the transaction. With rare exception, the seller must then defend the lawsuit with his or her own funds and is likely to file a counter suit against the realtor for failing to properly advise the seller on what should have been disclosed.
The key to minimizing and perhaps avoiding such lawsuits is to put yourself in the position of the buyer and ask, "Would I want to know this information about the house?” It's a simple question and if sellers answered the question fully and fairly on their disclosure documents they could save themselves tens and even hundreds of thousands of dollars in litigation costs.”
[Gerard M. Dougherty, Esq. is the founder and principal of the Dougherty Law Firm, APC in Westlake Village, and has been successfully prosecuting and defending cases based on the failure to disclose material information affecting the value and desirability of residential properties for the past 20 years. For more information contact Gerard M. Dougherty at: (805) 494-9038 ext 244, or via email: gmd@dllawyers.com.]
In addition to the Transfer Disclosure Statement, California state law requires that seller’s complete a Seller Property Questionnaire, which is intended to give the buyer more information “about known material or significant items affecting the value or desirability of the Property and help to eliminate misunderstandings about the condition of the Property.”
Upon review of completed disclosures offered by the seller it is also recommended that buyer’s be sure to put their concerns and questions in writing, as well as complete all necessary investigations of the property, including but not limited to property, termite, mold, geological and septic system inspections, all by a licensed individual or company.
I always advise my clients to seek the professional opinion of a knowledgeable and reputable source. Should you or someone you know would like more information about this or a related topic, feel free to contact myself and/or Gerry. Also, if you have something to say – feel free to COMMENT (by clicking on the title to this blog), email: schristie@cghomes.com, or call: 805.582.9500.