I am often asked what a seller is obligated to disclose to a future buyer if a prior buyer did not purchase because of a negative home inspection report? This raises many interesting issues, starting with the fact that a buyer is not obligated to share any home inspection report with a seller, unless it says so in the home inspection condition. But what if a buyer tells a seller about a major potential defect? Can the seller just fix the problem and say nothing further. Should the seller do further due diligence? And what duties does a real estate agent have if they know about the problem as well.
Please read the following article about a recent case which attempted to deal with these issues. The moral of the story is it is always better to disclose problems in advance, instead of having to defend yourself in court.
Read the article: http://www.thestar.com/business/personal_finance/2013/07/16/home_inspection_should_seller_disclose_the_flaws.html
Who you gonna call if the house is haunted, a medium or a lawyer?
Do you need to disclose whether a house may be haunted? While the answer is likely no in Canada, please read the attached article about a home in New York where a seller’s failure to disclose permitted a buyer to cancel the agreement.
If this type of issue will bother any buyer, then make sure you include a clause in your purchase agreement that protects you.
Click here to read the article: http://www.thestar.com/business/personal_finance/2013/06/21/do_you_need_a_psychic_or_medium_as_well_as_an_inspector_when_you_buy_real_estate.html
My Law Practice
I have received many inquiries about my law practice, providing legal services to real estate buyers, sellers and investors. Working with Real Property Transaction Centres, I am now able to close real estate transactions throughout the GTA. If you require any assistance on a transaction that you are working on, please email me at mark@markweisleder.com
If you or your clients are looking for a written quote, please visit www.realproperty.ca and search under “How much does it cost” or contact Suzanne at 1-877- 219-9618, ext. 231.
About Mark Weisleder
Mark is a lawyer, author, instructor, Toronto Star columnist and keynote speaker for the real estate industry.
Mark Weisleder
www.markweisleder.com