Posted by Natalie-VA on November 11, 2007 at 09:24:57:
Roger,
Thanks for the reference. Here’s my non-lawyer interpretation of the code…
In this case (a lender selling after a foreclosure), the seller is not required to fill out the disclosure form; HOWEVER, sellers are always required to disclose a defect that they’re aware of.
I’ll add to this that none of this EVER exempts a RE agent from not disclosing a defect that they’re aware of.
–Natalie
Houston Seller Disclosure on Foreclosure - Posted by Jon Erlandson
Posted by Jon Erlandson on November 07, 2007 at 09:42:49:
My wife and I visited a property but the agent was unable to meet with us so we were only able to peer inside. We noticed buckled hardwood flooring (at this time I assume due to A.C. off and result of humidity) and when we asked the agent she stated she wasn’t able to comment on the problem because it was sold “as-is.” We do plan to have any home we purchase inspected but would like to know if full disclose is required by the seller of a foreclosed property if they state “sold as-is?”
Thanks,
Jon Erlandson
Re: Houston Seller Disclosure on Foreclosure - Posted by Roger - Houston
Posted by Roger - Houston on November 09, 2007 at 10:57:35:
Tai is incorrect. A Mortgagee who forclosed under a deed of trust is not required to provide a disclosure.
Re: Houston Seller Disclosure on Foreclosure - Posted by Tai
Posted by Tai on November 07, 2007 at 17:24:48:
actually, this is typical of REO properties.
in REO, the seller is the bank, and they really dont
want to know anything about the property so they can
say “dont know” to every question on the disclosure
form.
I suspect the agent, too, dont want to know anything
about the property and may explain why she missed the
appointment. when I visited REO with listing agents,
I usually ended up going into the houses by myself
because the agents did not want to go inside. I now
always use my buyer agent.
disclosure is still required - but the answer to every
question will be “unknown” - in REO.
Re: Houston Seller Disclosure on Foreclosure - Posted by Natalie-VA
Posted by Natalie-VA on November 07, 2007 at 12:07:43:
This is B.S. The agent either doesn’t know or is concealing a defect. If she doesn’t know, she should just say so. Call her Broker and ask him/her.
–Natalie
Re: Houston Seller Disclosure on Foreclosure - Posted by BTI
Posted by BTI on November 07, 2007 at 11:35:39:
Jon
In the states I’ve done business in the seller and the agent are required to disclose any material facts that they are aware of, as is sale or not.
Ask this agent “didn’t you study this when you were studying for your license and weren’t you advised that concealing any material fact will cause you and your broker to be sued by any future buyer, which reminds me who carries your e&o insurance.”
In the event you go ahead in this deal, set your price to reflect the worst case scenario for every part of this property. And I suggest you have the seller carry paper so in the event you have to sue and win you have something to collect against. Oh, and make sure you have a clause that allows you to deduct any expenses and amounts due you related to failure to reveal a known material fact from the principal and first right of refusal in the note so the seller can’t sell the note and take a hike.
When a seller objects to this I ask “what are you afraid of, your not concealing any known or suspected problems are you?”
BTI
Re: Houston Seller Disclosure on Foreclosure - Posted by Jon Erlandson
Posted by Jon Erlandson on November 09, 2007 at 15:53:20:
Hmmm, so how did you determine this was a “deed of trust” and not a mortgage foreclosure?
Re: Houston Seller Disclosure on Foreclosure - Posted by Natalie-VA
Posted by Natalie-VA on November 09, 2007 at 14:30:16:
Hi Roger,
I’m glad someone in Texas chimed in. I understand what you’re saying about some who are exempt from providing certain written disclosures. We have that in Virginia also.
I’m still confused though about whether or not a seller (any seller) is required to disclose a material fact or hidden defect if they’re aware of it. Does the exemption from disclosure exempt them from disclosing something they know about?
I hope this makes sense.
–Natalie
Re: Houston Seller Disclosure on Foreclosure - Posted by Jon Erlandson
Posted by Jon Erlandson on November 07, 2007 at 18:49:10:
Ah, more insight… This explains why she gave us the code for the lockbox:) Makes sense now…
Thanks,
Jon
Re: Houston Seller Disclosure on Foreclosure - Posted by Jon Erlandson
Posted by Jon Erlandson on November 07, 2007 at 12:58:44:
No, we were told they couldn’t disclose the information because it was sold “as-is” and we’d have to have our own inspection done. I’d like to know the law regarding seller disclosure as I was under the impression they are required to provide all they know.
Re: Houston Seller Disclosure on Foreclosure - Posted by Jon Erlandson
Posted by Jon Erlandson on November 07, 2007 at 13:15:12:
Thanks,
This confirms my suspicions disclosure is required… However, we decided no on the property because of potential street noise but this will help in the future.
(this is a repost… don’t know what happened to the first)
Re: Houston Seller Disclosure on Foreclosure - Posted by Roger - Houston
Posted by Roger - Houston on November 10, 2007 at 07:21:07:
Because this is Texas.
Re: Houston Seller Disclosure on Foreclosure - Posted by Roger - Houston
Posted by Roger - Houston on November 10, 2007 at 07:23:24:
Natalie, read the Texas Property Code section 5.008