How to avoid that haunting feeling when buying or selling property
Sam Schneiderman, Broker-owner of Greater Boston Home Team continues his Monday series.
The first time it happened, I was in a home with a couple and their child. The wife seemed nervous about something. When she was able to distance herself from her husband and son, she turned to me and nervously asked; “Is their any way that we can find out if this house is haunted”?
Maybe there are supernatural spirits, and maybe there aren’t, but that really isn’t relevant when a buyer-client wants to know. As far as I am concerned, there is no such thing as a silly question from a client. After all, I wouldn’t want them to be haunted by their decision even if the supernatural did not manifest itself.
What do you do with a concern like that?
Buyers should discuss any concerns with their buyer’s agent. If you are not represented, ask the seller. In Massachusetts, you have the legal right to know about any material facts that would affect your decision to purchase property. You can ask other questions, but the seller or agent may not necessarily be obligated to answer. If the seller does not answer your questions, you might rethink whether the property and seller are a good fit for you,
Buyers and their agents may consider investigating further and perhaps having a special clause to address concerns. For instance, “this offer is subject to the buyer’s satisfactory inspection for the presence of supernatural spirits.” (Consult with an attorney for exact language.)
Buyer’s agents are bound to provide “obedience to lawful instruction” to clients. They need to ask the seller’s agent or seller (in the case of a For Sale By Owner) and document the answer. I believe that also means they need to figure out the best way to get the information that the client wants, possibly by directing her to a reliable place for answers, consulting with an attorney or addressing the concern in the agreement(s). Don’t avoid the question just to get to closing!
Sellers should answer all of the buyer’s questions honestly and accurately. Sellers that have questions about what they need to answer or how to answer should consult an attorney before answering. (There are some questions that don’t need to be answered like questions about HIV and race. Does that mean that you need to respond about the ghost question, but you do not need to disclose the race of the ghost if asked? When in doubt, ask a good real estate attorney before answering.)
Seller’s agents must disclose known material facts in the real estate. Do you need to volunteer them or only respond if asked? What is material? The way I understand it, what is material to the buyer, may not always be material to the seller. Then there is the question of what is known and, if it is not known, what is the agent’s obligation to find out? Since I am a broker and not an attorney, I will leave it to the attorneys to help us out. When in doubt ask one, before responding.
PERSPECTIVE:
Whether the disclosure is about ghosts, bats in the attic or rats in basement, if it’s an issue of concern, the best policy is for the buyer(s) to ask and the seller(s) to disclose so that they will never have to look over their shoulders after the closing.
Disclosure can be a complicated issue. In the spirit of creating a transaction for buyers and sellers that will keep them motivated to get to closing, both sides need to be able to move forward knowing that there will be no ghoulish details that can come back to haunt them after the closing.
Our attorney and broker readers are especially encouraged to share their perspectives on the subject of disclosures.
