eDiscovery, legal research and legal memo creation - ready to be sent to your counterparty? Get it done in a heartbeat with AI. (Get started for free)
What should I do if my home selling agent neglected to tell me important information after I bought a house?
Real estate agents have a fiduciary duty to their clients, meaning they are legally obligated to act in the best interest of the buyer.
If they neglect to disclose critical information, they could face legal repercussions.
Most states require sellers to disclose known defects about the property in a seller’s disclosure statement, which serves to protect buyers from unpleasant surprises.
Failure to disclose can lead to lawsuits, where buyers can seek damages if significant issues with the home are discovered after closing.
The legal basis typically revolves around misrepresentation or fraud.
Some states have stricter disclosure laws than others.
For instance, Michigan mandates sellers to disclose farms, landfills, and airports nearby, which may significantly impact property value and livability.
In general, sellers must disclose all “material” defects.
This includes issues like mold, faulty wiring, or plumbing problems that could affect health or safety rather than aesthetic concerns.
Home inspections are typically recommended prior to closing a deal.
While inspectors are not perfect, their reports can uncover issues that a buyer should be aware of before finalizing the purchase.
The “as-is” clause in real estate contracts indicates that the buyer is agreeing to purchase the property in its current state.
However, this does not exempt sellers from their responsibility to disclose known problems.
The concept of caveat emptor, or "let the buyer beware," used to dominate real estate transactions, but modern laws increasingly hold sellers accountable for undisclosed issues.
If a buyer discovers issues that the seller failed to disclose, they should first attempt to resolve the issue amicably before considering legal action, as this can often be a quicker, less costly approach.
In some jurisdictions, a lack of disclosure by agents can lead to disciplinary actions, including fines or the loss of their real estate license.
The statute of limitations for disclosing issues can vary greatly among states, affecting the timeframe in which a buyer can sue after discovering undisclosed defects.
Sellers can sometimes be held accountable even for problems that were previously addressed, like a history of flooding, as persistent issues could influence a buyer’s decision-making.
Real estate commissions in some areas are negotiable, meaning the fee isn't always a fixed percentage and can vary based on services provided or company policies.
Title insurance protects against defects in property title, including issues that might arise from undisclosed information.
It acts as a safeguard for buyers in situations where previous claims or liens existed.
Some buyers may mistakenly assume verbal discussions with their agent are part of the official record; however, only written disclosures typically hold legal weight in disputes.
As buyers, understanding local zoning laws and potential future developments in the area can prevent disappointments related to property value and quality of life.
The National Association of Realtors has a Code of Ethics that emphasizes the importance of transparency and accountability among agents, pushing them to uphold high standards in client dealings.
Using contracts that are overly complex can lead to misunderstandings; ensuring clarity in what information should be disclosed in the sale process is crucial.
Homeowners often underestimate the value of past repair work done on a home.
In some states, documentation of repairs can be important in any future disputes regarding property conditions.
A buyer who feels wronged can seek the advice of a real estate attorney to explore the possibility of mediation or other dispute resolution methods before escalating to litigation.
eDiscovery, legal research and legal memo creation - ready to be sent to your counterparty? Get it done in a heartbeat with AI. (Get started for free)