You are legally obligated to follow federal, state, and local disclosure laws for real estate transactions, reporting any information about defects with the structure or other pertinent facts you are aware of that could ultimately affect the property’s value. In addition, you should discuss with an experienced professional even the most minor of issues that could infringe upon the use, value, or enjoyment of the property in its entirety. Disclosure laws are one reason you should keep careful records of all work done. You should also maintain possession of the disclosure form after the closing for three years to protect yourself.
In addition to structural or other issues with the home itself, another way to fail to disclose would be in misrepresenting the property. For example, you schedule a showing appointment for potential out-of-town buyers to stop by the property, intending to hide the noise factor of a nearby airport or the time of day the smells from a nearby factory are pouring in the windows, and you don’t mention anything. Read on to discover the consequences of not disclosing problems with your Eugene house before selling before you find yourself learning them the hard way.
A buyer in an Oregon real estate case recently obtained a judgment against the seller for over $20,000. The judgment included the costs of the action (filing fees and service of process), attorney’s fees, and repair costs associated with latent defects in the property that were not disclosed before closing on the sale.
The judge in this case further ordered that if repairs costing up to $35,000 are completed within 6 months after closing, then no interest or penalties could be assessed to the seller beyond what is owed to the lender on the legal judgement. It was suggested by one of our readers, however, that it would have been far better for this seller to have made these repairs prior to selling since many will refuse advances towards corrective work while a case is pending.
Once a seller has been found liable in a real estate auction fraud case, the court will likely order a trustee sale of their property. This means that a third-party agent will sell the property privately and pocket all of the monies collected from the sale without notifying the buyer at any point.
Legal Judgement and Court Costs
Another one of the consequences of not disclosing problems with your Eugene house before selling, in addition to the time, energy, and stress you will expend dealing with the aftermath, you could end up with a judgment against you in the tens of thousands or more.
Paying for Repairs or Damages Suffered
After closing, you are still responsible financially for paying for any of the consequences experienced by the buyers from your not disclosing problems with your Eugene house before selling. If a repair is needed, for example, a discovery of unpermitted work you performed, it means you’ll likely be paying for the tear-out and replacement to make it right, along with the permitting fees you were trying to save. Similarly, if medical treatment should be necessary because of a health hazard, the hospital bills will be yours as well.
The experienced direct buyers at Grand Real Estate Investments can help you with what you should and should not disclose to help you avoid the consequences of not disclosing problems with your Eugene house before selling. At Grand Real Estate Investments, we understand the importance of communication; our direct buyers stop and listen to your questions or concerns, with no pressure or obligation to work with Grand Real Estate Investments. Why not save money and time by selling your house directly to Grand Real Estate Investments and avoid the prep work, repairs, showings, and paying high commissions or other fees at closing. When you make a direct sale to Grand Real Estate Investments, we want you to agree that the cash offer for your house is fair because we want you to feel good about working with us long after the sale. Contact Grand Real Estate Investments today at 541-243-7237 to learn more.