When it comes to buying or selling a property, transparency is crucial. Courts have found that both sellers and agents have a responsibility to disclose any relevant information about the property's condition.
It is important for listing agents to educate sellers about the risks associated with not disclosing relevant information about the property's condition.
Failure to disclose can lead to lawsuits and financial consequences down the line. By being transparent, sellers and their agents can avoid potential legal issues.
When buyers have a complete understanding of what they are investing in, they are making an informed decision. This protects against a buyer suing their agent when they become aware of an issue they feel should have been disclosed.
Material Latent Defects
Sellers should disclose any material latent defects, which are hidden flaws or issues that may not be easily visible or known to the buyer but give rise to an argument that the property value is impacted by them. Past issues or claims related to the property should be disclosed, regardless of whether they have been resolved or remediated. This includes previous insurance claims, repairs, or renovations.
