Q DEAR BARRY: When we bought our home, the seller filled out a disclosure form supposedly reporting everything wrong with the property. Aside from disclosing a ceiling stain in one of the closets, this form told us nothing. So we purchased the property with that understanding. After moving in, we found an endless array of plumbing and electrical problems, with repair costs exceeding $15,000. So please tell me, of what legal value is the form? -- Richard
ADEAR RICHARD: Many states have laws that require sellers to disclose undesirable property conditions. This includes any known defect, whether it be physical damage, roof or plumbing leakage, inoperability of a component or appliance, or any condition that could adversely affect a prospective buyer's interest in the property. To comply with this requirement, a seller fills out a standard disclosure form, declaring all unfavorable conditions.
Unfortunately, reliance upon this as complete and accurate information is based upon two erroneous assumptions: That property owners are fully aware of conditions that warrant disclosure, and that property owners are willing to disclose known defects.
Little comment is needed regarding that second group. These are the societal bottom feeders, the practitioners of compromised ethics.
The first group, however, consists of sellers who are unaware or unsure of what conditions to disclose. In short, they include nearly everyone who has ever sold a house. That's because all homes have at least one defect that is completely unknown to the owner. It might be a wiring violation in the breaker panel, a cracked framing strut in the attic, a separated chimney fitting, a drain leak under the house, missing screws at flue pipe fittings or a fire safety violation. The list is endless and is the primary reason why home inspections, not disclosure forms, are the essential avenue of disclosure for home buyers.
The primary benefit of disclosure forms is that they may note conditions not usually discovered by home inspectors. For example, an honest seller might disclose that the added bedroom was built without a permit, that the main sewer line becomes clogged with roots from time to time, or that winter flooding occurs in the basement every few years.
DEAR BARRY: There was a previous purchase offer on the house I'm buying, but the deal fell through. When I asked my agent for a copy of the previous home inspection report, he said I was not entitled to a copy. How can they withhold this information? -- Nancy
DEAR NANCY: The inspection report is the property of the previous would-be buyers. Therefore, you might not be entitled to a physical copy. However, the real estate agents and sellers are required to disclose every property defect of which they are aware. If they have read the old inspection report, then every item in that report is part of their knowledge, and it is now their legal responsibility to disclose that information.
Barry Stone is a professional home inspector. If you have questions or comments, contact him through his Web site, www.housedetective.com, or send mail to 1776 Jami Lee Ct., Suite 218, San Luis Obispo, Calif. 93401.
