Real Estate Disclosures Don't Always Tell All article

[Guest guest]

Real Estate Disclosures Don't Always Tell All

Law Requires Sellers To Disclose Known Defects

UPDATED: 3:44 pm EDT May 12, 2005

http://www.wral.com/money/4482589/detail.html

SACRAMENTO, Calif. -- It's a real estate horror story: You move into a

new home only to find out a seller has left you with expensive repairs

-- problems not disclosed before the ink was dry on the sale.

So what can homeowners do in this situation?

Bebe and Letty Assad claim an undisclosed faulty roof repair caused

extensive damage in their Elk Grove, Calif., home just a month after

they moved in.

" There was water intrusion in every light fixture ... in every bedroom

there was water coming in, " Letty Assad said.

In Citrus Heights, Candace Nunez said the undisclosed mold problems in

her home are so bad that she won't move her family into the home. She

claims the sellers made no mention of the problem in their disclosure

form and even tried to cover up the mold by patching in new sheetrock.

" In my opinion, I think they knew about the problem, " Nunez said.

In Sacramento's Tahoe Park area, the Benzingers said they moved into

their home only to discover a broken sewer line. They claim an old

plumber's report shows the seller knew about the problem, but didn't

fully spell it out in a real estate disclosure form.

" It would actually boil up and there were bits of toilet paper in it.

You could tell it was an ugly-looking and smelly liquid, "

Benzinger said.

Real estate law is clear. Sellers are supposed to disclose any of the

home's defects and repair work -- anything that would decrease a

home's value.

Experts said if a problem is found that is not disclosed in real

estate paperwork, the buyer should contact the seller and the agents

involved. If that leads nowhere, homeowners can then turn to the courts.

" A lot of times in these cases, we have as potential parties against

who claims are brought the real estate broker, the sales agent, for

not only the seller of the property, but the buyer's real estate agent

and broker, " real estate litigator said.

also said a thorough home inspection is key to avoiding

problems, but to be cautious about taking advice about who to hire.

" On many occasions, we see the same inspector used by the same real

estate agents. The inspectors have incentives to pass inspections to

get repeat business from the realtors, " said.

Experts said there are two rules regarding real estate disclosure.

If you think something should be disclosed, disclose it. And, if you

don't think something needs to be disclosed, disclose it.

As for the Assads, the Benzingers and Nunezes, they have yet to recoup

their losses, but all are trying.