- Don't mislead the buyers. - Bobbi Holmes
When you sell your home, the last thing you want to think about is the new homeowner returning in the future to sue you. The moment you decide to list your home, take steps to prevent a future lawsuit. Even if your buyer sues you, the steps you take may help mitigate any claims against you.
Inspect Your Home
Inspect your house before putting it on the market. If there were room additions done without the proper permits, either get a permit or remove the addition. Make necessary repairs, and eliminate any potential safety hazards and clouds on the title.
While the homebuyer will typically do his own inspection, and may request repairs, try to fix items before asked. If you intend to sell the property as is, and won’t be making repairs, make sure that is included in your sales contract, with full written agreement by the buyer.
Give Full Disclosure
Be prepared to give a full disclosure on the property, and do it in writing. Don’t attempt to conceal your house’s defects. Covering up the moldy wall with paint might slip by an unobservant inspector, but if the buyer later claims you intentionally concealed the mold, you won’t like your day in court. It’s best to deal with the problem prior to listing the house, and then in writing, fully disclose the mold issue, along with how you resolved the problem.
Fair Housing Laws
Treat potential buyers respectfully and be mindful of fair housing laws. Don’t discriminate against buyers based on race, color, religion, sex, disability, familial status or national origin. If you are a closet bigot, keep your opinions to yourself.
When listing your home with a real estate agent, give him accurate information. If you’re working with a real estate agent, let the agent deal with the buyer. If you aren’t working with a real estate agent, but dealing directly with the seller, don’t give the seller incorrect information or make false promises.
Buy a Home Warranty
Buy your homebuyer a home warranty, which is an insurance policy typically protecting the house for the first year. Coverage is for repairs, for broken items that occur after the close of escrow. This might include appliances, plumbing and electrical. Policies vary considerably in coverage, so read the policy carefully so you understand the coverage. With a home warranty, a buyer will typically go to the home warranty company, as opposed to the seller, should something go wrong after the close of escrow.
Keep a paper trail, documenting everything about your real estate transaction, along with receipts for work done on the property. While you may not be able to completely avoid a lawsuit, having a complete paper trail can sway the outcome in your favor.
Bobbi Holmes - A graduate of California State University, with a Bachelor’s Degree in Communications, and an emphasis in photography, Bobbi Holmes ...
