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February 4, 2010
Bad inspection, reluctant seller
Had an accepted offer on a house advertised as brand new, gut reno, brand new mechanicals, perfect, move-in condition. Inspection was awful - though living space generally fine, basement revealed structural, mechanical, electrical, plumbing issues. Significant ones. Roof issues as well. Tried to negotiate but it sounds like seller will walk away in hopes of a less savvy buyer and less thorough inspector (maybe doing some very minimal work to at least fix major code violations). Aren't brokers obligated to reveal anything if they know for sure (having read the inspection report) that the house isn't in the perfect condition assumed by the listing description?
Comments
I think they are bound not to answer dishonestly, but the requirements of affirmative disclosure are probably limited. If you really want it at an appropriate discount, the pithc should be that any buyer's inspector is going to find this stuff and they will not gain by waiting. Leverage the broker's interest in completing a deal, by stressing that the same issues will come up with any buyer.
Posted by: slopefarm at February 4, 2010 4:36 PM
$500 refund at closing and they do not have to disclose anything.
Posted by: pig three at February 4, 2010 5:41 PM
"Aren't brokers obligated to reveal anything if they know for sure"
I had a broker tell me in the 10yrs shes been in the industry no one has ever asked her what electrical service is feeding the property and proceeded to explain to us that it wasnt her job to know such a thing..
I wonder if car salesman are going to start saying its not their job to know anything about the cars they sell..
Posted by: JohnnyDangerously at February 4, 2010 7:11 PM
Reminds me of the time I was inspecting a used car for purchase and the seller was incredulous that I wanted to look under the hood. "You want to look under the HOOD?" he kept repeating.
I didn't buy his crappy car.
Posted by: mopar at February 4, 2010 7:21 PM
if your looking to get a mortgage, you may have problem since the banks arent lending on properties with structure and roof issues.
Posted by: yaelishakis at February 4, 2010 10:29 PM
Brokers are not supposed to give opinion in New York State about Taxes, Contract Law, Mortgages etc. You should you hire an Inspector/Engineer anyway, just like you would your own attorney - Caveat Emptor.
Brokers are required to disclose "latent defects" However. That can differ on who you ask.
Many Brokers will refuse to market a property they know has major undisclosed problems for the sake of good business, some won't.
Posted by: Crownlfc at February 6, 2010 2:12 AM
I was always under the impression that a broker can't lie about something that's indisputable.
Asbestos in the basement is indisputable. The roof is a problem, the electric needs to be upgraded, boiler needs to be replaced are all subjective. Maybe 9 out of 10 people would agree, but if I'm a shady broker, I'll find that 10th. person and that's who I'll quote.
Posted by: Bond at February 6, 2010 11:15 AM
i was just informed by a broker, that they are now required to get thier own e & o insurance, since they are now liable for non disclosure etc..
Posted by: yaelishakis at February 7, 2010 12:10 AM
What property is this? I think everyone would benefit from knowing. I also would suggest you post who your inspector is if you liked him/her as many times inspectors see a new renovation and don't take the inspection seriously.
Posted by: Thronston_marcus at February 8, 2010 1:06 PM
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