Disclosing known defects

KNOWING what is right isn’t as important as DOING what is right!

Have you ever viewed a property to purchase and been not quite sure about something you have noticed in the home?

Perhaps the age of the home shows some notable damage to the window frames ?

Maybe there is wood rot or perhaps there is a water stain on the ceiling?

What if the salesperson shrugs it off as fair wear and tear when you suspect there is more to it?

Or perhaps you ask the salesperson about the neighbourhood, and they tell you that the owners have told them that there is a nice young couple next door who are no trouble at all.

What if your research about the neighbourhood at the local Police station shows that there have been a few bad incidents in the next door property involving drugs or violence ?

Of course, some sellers knowingly forget some important details, and hide certain things from their salesperson.

However, the salesperson is duty bound to act in a professional way and in most countries, like NZ there is a code of professional conduct that has to be upheld.

Salespeople need to disclose any known defect

If the wood rot was quite evident then the salesperson is already obligated to disclose anything that they know about the property.

They should advise prospective purchasers to have a suitably qualified building inspector do an inspection in order to satisfy themselves before purchasing.

Salespeople are not builders, but they do have to behave in an ethical and professional way when it comes to duty and care and skill when undertaking real estate work.

The object of selling a home is to get as much interest in it as possible, as surely the more interest one has, pushes the price up as buyers compete with one another to purchase.

This would be a good outcome for a seller, and therefore the salesperson would be acting in the best interests of their client.

Salespeople have a duty to tell all prospective purchases about anything that is relevant about  the property, both positive and negative. It is their legal obligation to make full disclosures.

Disclosures will generally include:

Finding fault with a property will usually mean that the buyer is interested enough to know if  there is a solution to the problem

It has always been my belief that if a buyer finds a fault with a property, then that suggests that they are interested in it, and it would be prudent to overcome any objection by identifying what the key issues are.

Then you are able to address the problem and resolve it in a professional and ethical manner if it is at all possible.

Full disclosure of any facts that come to a salesperson’s attention in the process of listing and selling a property is very important, and in most countries, is written into the law that governs the Real Estate industry.

Not everybody is suited to sales though

Acting in the best interests of your seller means that you should be protecting their interests.

But it does not absolve you from acting in a fair and moral way with your purchasers.

There is a better way for dealing with buyers who point out the obvious.

By ignoring their concerns brings the Real Estate Industry into disrepute which is against the real estate code of conduct.

Selling Real Estate is not suited to everybody of course, and there are some who just should not be in the Industry, and like many other professions, there is always one who lets the side down.

© 2022 e-propertymatters.com| women-in-realestate.com| Author Kathryn