Disclosure Issues
Managing Your Risk When Selling a Car-Crash- Prone Property
As a real estate professional, your likelihood of being sued can increase when selling high-risk properties. Homes on busy roads or intersections, on tight corners, or in other locations where car crashes are a strong possibility can pose a risk to buyers. This has the potential to end up being your problem if they slapRead More
Does a Low Appraisal Need to Be Shared with the Seller?
It’s no surprise that appraisals are part of the process when it comes to real estate sales, but sometimes low appraisals can be a surprise. When this happens, lenders may decline to finance. And, if there’s a home appraisal or loan contingency, the sale may not go through. Recently we talked to a CRES clientRead More
Selling and Buying Property in a Noisy Area
The real estate market is all about trade-offs and compromise — particularly in a tight housing market, which California and a number of other states are experiencing today. When demand far outweighs supply, prospective buyers will go to great lengths to secure a property before prices again skyrocket — and shatter their dreams of homeRead More
Risks When Representing Clients With Wildfire Damaged Real Estate
How to manage 4 key areas of risk when a client’s home is destroyed by CA wildfires If you’re a California real estate professional, chances are you may have represented a buyer who purchased a home that ended up being destroyed by wildfires. If you haven’t already, you may in the future. Or, perhaps youRead More
When There’s Mold in Real Estate
Mold litigation has expanded, and is now being brought by property owners/buyers, employees, tenants, or merely building occupants dealing with mold in real estate. These claims gained a lot of publicity (for example, the Ed McMahon lawsuit). Yet, the science regarding mold and whether it can cause significant or permanent health effects is not established.Read More
“My Client’s Home Was Destroyed in the Wildfires – Now What?”
In early October 2017, a series of 250 wildfires started burning throughout Northern California, bringing terror and destruction to the region. The wildfires broke out throughout Napa, Lake, Sonoma, Mendocino, Butte, and Solano Counties. These fires included the Tubbs Fire (which grew to become the most destructive wildfire in the history of California), the AtlasRead More
Selling A Home Where Someone Died – A Guide To Your Disclosure Responsibilities
Disclosures vary in every state, but most relate to material defects and physical things which are wrong with the home. What if you’re selling an amazing property which has everything going for it, but there’s a catch – someone has died in it. Even if it’s not a recent death, you need to be awareRead More
Disclosing and Documenting Before Closing
Document All Client Advisories about Third-Party Experts Do you advise your clients in writing to consult with third-party experts before closing? And if you do, do you document it in the client’s file? If you want to reduce your risk of a real estate lawsuit, the answers should be yes and yes. I’ve defended manyRead More
Real Estate Agents: Understanding Easements and How to Minimize Liability
Easements are a non-possessory right to use land or a portion of property belonging to another person. Failing to recognize and educate clients as to the existence of any easements can curtail an otherwise routine real estate transaction and potentially lead to litigation. An easement may exist in one of two forms: affirmative easement orRead More
Should a Real Estate Agent Disclose Divorce in a Home Sale?
It’s not uncommon for a couple getting divorced to sell their home, so it’s quite possible that you have been or will be involved in real estate sales when the sellers are divorcing. In those cases, do you need to disclose that the sellers are getting divorced? Recently CRES Risk Management fielded a call fromRead More