Yes!
As a Realtor you must provide the best, up to date advice to your client regarding the disclosure of defects on their property.
There are two types of property defects, latent and patent defects. We will describe both and why disclosure can be important.
Patent defects are those defects or problems that cannot be seen and are unknown to the seller. These cannot be disclosed as there is no knowledge of them by the owner of the property. This could include something that is hidden in or behind a wall, something unseen. You cannot disclose something you do not know about, can you!
A latent defect is one that is known. A leaky basement where the water has been mopped up is in that category. An old oil tank that is buried, and that the owner is aware of is also a Latent defect. According to common law, it is the responsibility of the seller and his/her agent to disclose these latent defects to potential buyers.
Controversy has resulted in recent years from lawyers who state that disclosing the existence of a defect in a Seller Property Disclosure Statement may cause a lawsuit or admission of guilt on behalf of the seller and thus some liability if the buyer chooses to sue over the disclosed item or situation. While that may be the case, it is a certainty that if the seller does not disclose, in writing to prove the disclosure has occurred, that the seller will be proved guilty of not disclosing something that may effect the value of a property. The agent's responsibility, proven many times in court, is to relate to the seller that this disclosure is important and will reduce the opportunity of a law suit if done properly. The best venue we have is a Seller Property Information Statement. So we recommend it be used, always.
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