Buying or Selling a Home/Disclosure

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Expert: - 8/27/2008


Question
hello. I'm going to skip alot of details. A '83 doublewide was bought & paid for 12,000 from a friend in Texas. After the purchase, the buyer requested the title. The seller informed him that he did not have one. The house had been given to him by his Father-In-Law some years back. He had not received a title at that time. I think just a hand written Bill-Of-Sale. His F-I-L had bought in the same manner. It appears there have been several transactions on this house but never recorded with the State. The seller new that it was w/o title but did not disclose this info. until afterwards. He had contacted the State agency some years back & they informed him that ea. transaction that occurred, the taxes had to be paid that due the State. He choose not to take the necessary action to get the title cleared up to his name. He said it never occurred to him that it would be an issue since that the way its been passed along. It sounds like he views it as some old tractor thats been sitting out in a field & someone comes along & buys it "as is". It has been my view that "as is" on any item that would normally require a title/deed, i.e. an auto, truck, boat, house, property, etc, would only be referring to the physical condition of the property but have nothing to do with the title. That would be a separate declaration. All of the items that I've bought "as is", I bought with the understanding I was getting it in it's existing condition. I never had the thought of there not being a title. So my question is this. In your opinion, is my view accurate? Would the lack of a clear title require disclosure prior to sale even thought it was bought "as is"?
Thanks for your time.

Answer
Hello Joel - Sorry for the delay. I discussed this with my firms legal counsel and since I am not an attorney, and he does not represent you, I cannot repeat his advice directly. From a real estate perspective this manufactured home (no longer called mobile home since 1978) must possess what is called a 'certificate of affixture' for a real estate licensee to be involved in dialog. Since there is subjecture to whether it is chattel or real property I can only recommend that your friend seek legal advice as the laws are completely different depending upon this clarification.  If the home is considered real property then there are many seller required disclosures that may place a significant burden upon the Seller's representation of, or lack of, disclosure, but remember the Buyer always assumes a reasonable level of due diligence (effort to investigate) as ignorance in itself is not protection. The other situation revolves around the state in which the property is located as the laws are different in each state as to title and deed requirements. Depending on these items will determine your friends opportunities for remedy. I wish I could be more helpful but this question is really for an attorney not a REALTOR and therefore I am limited in the real estate advice I can provide without also knowing the answers to these questions. Best advice is to recommend your friend seek an attorney. - Todd

Buying or Selling a Home

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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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