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Buying or Selling a Home/Repairs needed after settlement

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Expert: - 3/2/2010


Question
Hello,
I recently bought a house in my neighborhood and rehabbed it and sold it.  In the seller's disclosure, I was completely honest in how long I owned the property (only a few months) and that I had never lived in the house.  The buyers signed the seller's disclosure before settlement.  A week after we setteled, the buyer's agent called to say that once the buyers moved in and started using the plumbing, there was a backup in the plumbing.  A plumber came out and ran the line and told the buyers they were going to have to "dig up" to fix the problem.  This is apparently a very costly repair.  They are saying we are responsible for the cost and they will sue us if we don't pay for it.  I say, they bought the house knowing that it had been vacant and that the seller was not aware of any problems, but some could have gone unnoticed until people were living in the house.  They had a home inspection as well, though this would not have brought to light the plumbing problem, since it was daily usage of the plumbing system.  Should I be concerned?  OR does the seller's disclosure protect me?  I feel bad that they have to deal with this, but still don't feel I am responsible (they did get a great deal on the house + $10,000 in seller's assist).
Thanks!
Maggie

Answer
Hello Maggie - I apologize for the delay in my reply. From a real estate perspective, the question to consider is "did you know of the latent defect or should you have known"? Is it reasonable that 'you' should have known of this problem as a result of the time of ownership or repairs made during your ownership period. Your question indicates that you disclosed what you knew. The purpose of seller disclosure requirement is all about exactly that, disclosing what you knew... or disclosing all repairs or series of repairs that would lead a buyer who is reviewing your disclosure to understand the known condition of the premises. You should not be held liable for something you did not know. I am not an attorney so this is not meant to be considered legal advice although it is intended to be real estate information that any experienced REALTOR should be able to provide. I do recommend that you contact a real estate attorney to learn your legal rights and remedies as they apply to this accusation for failure to disclose. I hope this has answered your question sufficiently.

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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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