I recently worked on a file with a disclosure issue.\u00a0 The facts\u00a0as I understand them are as follows:<\/p>\n
The seller gave the buyer an executed Seller Disclosure prior to the buyer making an offer.\u00a0 The buyer reviewed the disclosure, viewed the property and made their offer accordingly.\u00a0 The disclosure stated that there was a pool heater included in the purchase.\u00a0 However, no such heater existed.\u00a0 Does the incorrect disclosure complicate the closing?\u00a0 Absolutely.\u00a0 But does it force the seller to provide a new pool heater to the buyer?\u00a0 Not necessarily.<\/p>\n
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The bottom of the disclosure, above the seller’s signature it states in part:\u00a0“Seller represents that, to the best of seller’s knowedge, the information contained herein … is accurate and complete.”\u00a0 The pool heater was not listed on the mls sheet, nor does the contract reference the disclosure.\u00a0 So it appears that the disclosure is not part of the contract.\u00a0 So, back to the question … does the seller have to provide a pool heater?<\/p>\n
The answer appears to be “no”, based on the fact that the pool heater was not stated in the mls sheet and the disclosure\u00a0was not linked to the contract.\u00a0 But the questions only brings up even\u00a0more questions.\u00a0 Was it an honest mistake on the sellers part?\u00a0\u00a0How could the seller\u00a0not know if\u00a0 a pool heater was included?\u00a0Whend did the buyer determine that there was no pool heater?\u00a0 Would the buyer have made the same offer if\u00a0he knew the heater was not included?\u00a0 Is there a valid contract?<\/p>\n
The lesson to learn is that seller disclosures should be used as a guide for the buyer only.\u00a0 They are not typically part of the contract, but rather a representation\u00a0by the sellers to the best of the sellers knowledge.<\/p>\n\n\n\n\n","protected":false},"excerpt":{"rendered":"
I recently worked on a file with a disclosure issue.\u00a0 The facts\u00a0as I understand them are as follows: The seller gave the buyer an executed Seller Disclosure prior to the buyer making an offer.\u00a0 The buyer reviewed the disclosure, viewed … Continue reading