Buying or Selling a Home/real estate disclosure

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Expert: - 2/15/2008


Question
hello in december of 2006 i purchased a brand new spec home from richmond american   and later in 2007 we found out there was structual issues and problems with the home that they new before we purchased  the home. ow we are dealing with the issues they say the will try to repair the home, yet now we have found out we have to disclouse these items when we sale the home, i know im going to take a big loss and have to wonder f i cant go after the builder
for losses   can you help with ny information??

Answer
Hello Jeremy - Many homeowners are victim of poor tradesmanship as a result of the lack of supervision (aka Quality Control) coupled with the high volume of construction (so much construction and to few inspectors and superintendents). Since 1996 there has been an increasing number of claims with regard to poor craftsmanship including structural deficiencies. So rampant at one point that the registrar of contractors was experiencing so many claims the complainants were told that they had to address their complaints with the builder up to six times. If the specific issue was not addresses over this many attempts the consumer could then contact the ROC to request their assistance in compliance and craftsmanship. If the contractor was unable to perform during this ROC supervisory period the homeowner could file a complaint with the ROC and apply for recovery from the recovery fund. A.R.S. 32-1136 Statute of Limitations; Recovery from Fund: States the statute of limitation is  2 years from the time the homeowner became aware of the deficiency. The homeowner can apply for up to a max $30,000 per claim, up to $200,000 per home. The Arizona legislature enacted A.R.S. § 12-552 limiting the liability of contractors and builders to eight years (which may be extended for up to nine years if the defect is discovered during the eighth year)... No builder likes bad publicity, particularly during the current times. Sometimes the effort of consumer television programs can assist. Builders/contractors typically are more endeavorous to assist homeowners who are more knowledgeable about their personal rights. Every homeowners says that the builder/contractor was aware of the problem prior to sale but the difficulty for the homeowner is proof not hearsay. Common Law requires the homeowner, when offering their property for sale, to disclose known defects. Obviously as you indicated this would include your dilemma. You will have to disclose even if it is repaired correctly although if it is repaired correctly and the registrar of contractors/inspectors indicate the property to have structural integrity than the disclosure is eminent but the issue is nil to the prospective purchaser and to any inspector they may hire for their due diligence. But to say you have to bear the loss is most likely incorrect unless you are not diligent in pursuing efforts to hold the builder/contractor accountable. This means you have to do some research and talk to the Registrar of Contractors who licenses and supervises all trades. You also need to contact a real estate attorney to discover all your legal remedies and read the sales contract you signed to understand the arbitration options that you agreed to. Finally, document everything.. phone calls, appointments, missed appointments, dates, times, work performed during appointments, discussions with tradesman, the builder, etc... Please keep in mind that I am not an attorney and this is not to be construed as legal advice. The information I have provided was intended to assist you in the collection of information and suggestions that you may have not considered to this point. I certainly hope this has offered you some new avenues. - Todd Menard

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Todd C. Menard

Expertise

National Association of Realtors Code of Ethics and Professional Standards * Contract Questions: 05/05 Arizona Real Estate Purchase Contract, Exclusive Buyer Broker Contracts, Listing Contracts and associated contract documentation as it relates to boilerplate, covenants, contingencies, procedures and procedures. * ARMLS Arizona Regional Multiple Listing questions * Real Estate Professional Standards and Practices, Ethics, Obligations, Duties * Agency relationships in Arizona, Procurring Cause * Questions typicaly arising during the listing period * Questions typically arising during the escrow period * Questions about working with a real estate agent/REALTOR * Questions Related to New Home Builders

Experience

National Association of REALTORS Board of Director (2011) Arizona Real Estate Salesperson License (1991-1995), Arizona Real Estate Brokers License (1995-Present), Arizona Association of REALTORS Board of Directors (2008-Present), Arizona Association of REALTORS Professional Standards Committee (2008-Present), AAR Certified NAR Code of Ethics and Professional Standards Instructor, Southeast Valley Regional Association of REALTORS President-Elect (2011) Southeast Valley Regional Association of REALTORS Board of Directors (2008, 2009), Southeast Valley Regional Association of REALTORS Grievance Committee Chairperson (1998-2007), Southeast Valley Regional Association of REALTORS Bylaws Committee (2008-Present), Southeast Valley Regional Association of REALTORS Education Committee (2008), Arizona Association of REALTORS Forms Committee - Residential Purchase Contract (2005), Arizona Association of REALTORS Forms Committee - Residential Rental Agreement (2008), Arizona Association of REALTORS Forms Committee - Buyer Broker Agreement (2009), Arizona Association of REALTORS Presidents Advisory Group, Road to Professionalism (2009), Arizona Association of REALTORS GRI Curriculum Review Committee (2009), Arizona Department of Real Estate, Commissioner's Education Advisory Group Sub-Panel B (2010) Arizona Department of Real Estate, Commissioner's Statute and License Review Committee (2007)

Organizations
National Association of REALTORS, Arizona Association of REALTORS, Arizona Real Estate Educators Association (AZREEA), Arizona Regional Multiple Listing System (ARMLS), American Notary Association, Southeast Valley Regional Association of REALTORS (SEVRAR), Southeast Valley Regional Association of REALTORS Women's Council of REALTORS (2010-Present), Phoenix Association of REALTORS (1994-2000, 2005-2009), Scottsdale Association of REALTORS (1994-2000, 2005-2009), Maricopa/Glendale Association of REALTORS (1994-2000, 2005-2009),

Publications
"Real Estate in 2008"- Lifebushido Publishing (Contributory Author), SEVRAR Magazine, Internet Crusade, RealTown ListServe, Blogger.com, Active Rain

Education/Credentials
- AAR Certified Ethics and Professional Standards Instructor, Graduate REALTOR Institute (1993), Certified Negotiation Expert (CNE), Over 100 Hours of annual real estate continuing education, Annual Ethics and Professional Standards Development Workshops as required by the National Association of REALTORS, Approx. 36 hours of NAR Code of Ethics training annually, Numerous IDW, Seminars and Train the Trainer programs, Business Management Degree - 1981

Awards and Honors
2009 REALTOR of the Year Award, Southeast Valley Regional Association of REALTORS (10,000+ Members), Double Platinum Production Award ($45,000,000 Sales Volume)- Keller Williams Realty Int'l (2001), Top 15 Sales Production Keller Williams Realty International (2001), Top 5 Sales Producation Keller Williams Realty Southwest Region (2001), Top Recruiter Award - Keller Williams Realty Int'l, SW Region (2002), Who's Who in U.S. Executive (1983), Who's Who in U.S. Real Estate Professionals (2007)

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