There's a house I'm interested in. I've toured it once and the seller's broker knows I'm financially qualified. For a variety of reasons I strongly suspect there is some major defect that I'll find during due diligence, although I have no idea what it may be. I obviously would like to know what the defect is, or be indubitably reassured there is none, before I continue any further. I'd like... [more]
There's a house I'm interested in. I've toured it once and the seller's broker knows I'm financially qualified. For a variety of reasons I strongly suspect there is some major defect that I'll find during due diligence, although I have no idea what it may be. I obviously would like to know what the defect is, or be indubitably reassured there is none, before I continue any further.
I'd like something more concrete than just a verbal reassurance. I'm aware of the NYS Property Condition Disclosure Statement, and apparently that it's considered burdensome to complete and might open the seller up to liability if they misstate or omit something. It's my understanding most sellers don't complete one for these reasons.
Any thoughts on the best way to proceed? Am I too early in the process to demand disclosure? Is it reasonable to require the seller complete a Property Condition Disclosure Statement at this point? Is there some middle ground option?
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Response by 30yrs_RE_20_in_REO
over 6 years ago
Posts: 9878
Member since: Mar 2009
In my experience your understanding is correct that most seller's attorneys will tell them the disclosure will open them up to liability and not to give one. Regardless, if you think you are dealing with a seller or broker who is not dealing in good faith it is almost always a good idea to walk away .
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Response by 300_mercer
over 6 years ago
Posts: 10570
Member since: Feb 2007
Could you make offer say $500k without disclosure, and say $525k with disclosure or seller pays $5k for expenses if defects are discovered?
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Response by front_porch
over 6 years ago
Posts: 5317
Member since: Mar 2008
Unless the house has been sitting forever, it sounds like you go ahead and bid, subject to an inspection contingency, and then get the seller to give you the right of inspection pre-contract signing. You'll still have to pay the inspector, but you'll know what's going on before you're really tied up. I'm an apartment broker, not a house broker, but that has been the way it worked whenever I've bought a house outside NYC.
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In my experience your understanding is correct that most seller's attorneys will tell them the disclosure will open them up to liability and not to give one. Regardless, if you think you are dealing with a seller or broker who is not dealing in good faith it is almost always a good idea to walk away .
Could you make offer say $500k without disclosure, and say $525k with disclosure or seller pays $5k for expenses if defects are discovered?
Unless the house has been sitting forever, it sounds like you go ahead and bid, subject to an inspection contingency, and then get the seller to give you the right of inspection pre-contract signing. You'll still have to pay the inspector, but you'll know what's going on before you're really tied up. I'm an apartment broker, not a house broker, but that has been the way it worked whenever I've bought a house outside NYC.