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OFFICIAL MAGAZINE OF THE NATIONAL ASSOCIATION OF REALTORS®



  SALES MEETING TOOL KIT: PROPERTY DISCLOSURE
 

Component 1: Facilitator Talking Points

Component 2: Property Disclosure Agenda

Component 3: Handout 1, What Is Liability

Component 4: Activity 1, Recognizing Improper Disclosure

Component 5: Activity 1, Explanations for Disclosure Scenarios

Component 6: Handout 2, Tips for Reducing Your Risks

Component 7. Handout 3, Disclosure Primer and Your Company’s Property Disclosure Form

Component 8: Activity 2, Identifying Defect Red Flags

Component 9: Activity 2, Answers to Red Flags

Component 10: Activity 3: Lead Out Quiz

Component 11: Activity 3, Answers to Lead Quiz

Component 12: Handout 4, A summary of your state’s disclosure requirements under Megan’s Law

Other Resources		   Component 4: Activity 1: Scenarios: Recognizing Proper Disclosure

Scenario One
Bob lists his house with Rae. When he completes the property disclosure form, Bob indicates that the house has never had any problems with water in the basement. However, on the house tour, Rae sees some suspicious marks that look like water stains on the lower basement walls. What should she do?

Scenario Two
Oliver shows a house to Stan and Laurel. The house, which was built in the 1960s and never remodeled, has insulation that may contain asbestos. However, the material has never been tested. Laurel is concerned because Stan is a heavy smoker and may be more prone to cancer if he breathes asbestos fibers. She asked Oliver if the insulation contains asbestos.

Oliver says he is no expert and can’t tell. He tells Laurel that the property disclosure form does not indicate the known presence of asbestos, although the property has never been tested. Oliver also mentions that he has read that asbestos is only dangerous if it is crumbling. He suggests that Laurel have an asbestos inspection to be sure, but Laurel doesn’t want to spend the money. After she buys the house, Laurel decides to add another bathroom. When the workers tear out the wall, they find asbestos and have to use expensive removal techniques to do the demolition. Laurel threatens to sue the sellers and Oliver to recover her expenses. What is Oliver’s liability?

Scenario Three
Tracy is showing a house to the Larsons that has been vacant for six months. When the Larsons ask why, Tracy says that the owner had passed away. When the Larsons express amazement that a old couple would have moved to this neighborhood of young professionals, Tracy, concerned that the Larsons will get the wrong impression of the neighborhood and wanting to make the proper disclosure, says that the former owner was only 30 when he died from complications resulting from AIDS. “You’ll find plenty of young people around here,” she assures the Larsons. The Larsons buy the house, but reduce their offer by $10,000 because of the stigma associated with the property. What was Tracy’s error?

Component 5, Property Disclosure >

Note: This information provides general legal information and should not be relied upon as legal guidance. Before acting, both the relevant laws and legal counsel should be consulted. This information should not be construed as specific legal advice nor as an opinion on particular facts, cases, or situations.