You are legally obligated to follow federal, state, and local disclosure laws for real estate transactions, reporting any information about defects with the structure or other pertinent facts you are aware of that could ultimately affect the property’s value. In addition, you should discuss with an experienced professional even the most minor of issues that could infringe upon the use, value, or enjoyment of the property in its entirety. Disclosure laws are one reason you should keep careful records of all work done. You should also maintain possession of the disclosure form after the closing for three years to protect yourself.
In addition to structural or other issues with the property itself, another way to fail to disclose would be in misrepresenting the property. For example, you schedule a showing appointment for potential out-of-town buyers to stop by the property, intending to hide the noise factor of a nearby airport or the time of day the smells from a nearby factory are pouring in the windows, and you don’t mention anything. Read on to discover the consequences of not disclosing problems with your Long Beach property before selling and learning them the hard way.
Legal Action
One of the consequences of not disclosing problems with your Long Beach property before selling is facing legal action. Failing to disclose material facts about the property should be avoided because the buyers are highly likely to take legal recourse against what is considered real estate fraud. If the problems with your property have you concerned, a direct sale of the property as-is may be your solution.
Like those at OwnApts Multifamily Advisors, a direct buyer will detail the amount your property is likely to garner on the traditional MLS versus how much the property is worth in its current condition.
Legal Judgement and Court Costs
Another one of the consequences of not disclosing problems with your Long Beach property before selling, in addition to the time, energy, and stress you will expend dealing with the aftermath, is that you could end up with a judgment against you in the tens of thousands or more.
Paying for Repairs or Damages Suffered
After closing, you are still responsible financially for paying for any of the consequences experienced by the buyers from you not disclosing problems with your Long Beach property before selling. If a repair is needed, for example, a discovery of unpermitted work you performed, it means you’ll likely be paying for the tear-out and replacement to make it right, along with the permitting fees you were trying to save. Similarly, if medical treatment should be necessary because of a health hazard, the hospital bills will be yours as well.
At OwnApts Multifamily Advisors, we understand the importance of communication; our team takes the time to stop and listen to your questions or concerns, with no pressure or obligation to work with us. Contact OwnApts Multifamily Advisors today at (562) 548-8147 to learn more.