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Bob Bruss Columns
What can go wrong in a home sale?
By Bob Bruss
September 25, 2007
If you are involved with buying, selling or brokering houses and
condominiums but you don't enjoy getting involved in lawsuits,
"The No-Lawsuit Guide to Real Estate" by Realtor Barbara
Nichols will show you how to stay out of court. The author has
been involved with hundreds of real estate cases, primarily as
a consultant and expert witness, so she is well-qualified to advise
how to prevent realty lawsuits.
This new book explains
virtually every aspect of home sales, what can go wrong from a
legal viewpoint, and how to prevent lawsuits. Nichols cautions
realty agents to strongly recommend that buyers always hire a
professional home inspector and attend that inspection along with
the real estate agents. "The real estate agent for the seller
should advise clients to never accept a no-inspection-contingency
offer," she advises.
Purchase Bob Bruss
reports online.
Heavy emphasis is placed
throughout the book on getting everything in writing, including
contract changes that occur after the original agreement is signed.
Modification examples include a seller's repair credit if the
professional home inspector reveals unexpected defects and "as
is" sales terms.
In addition to discussing
how home buyers, sellers and their realty agents should handle
disclosures of known structural defects, the author thoroughly
explains the fiduciary duties of the realty agents to their sellers
and buyers. Attention is drawn to the dangers of dual agency (which
the author obviously dislikes) and clarifications of who represents
whom in the home sales transaction.
The book's most confusing
chapter is about building permits. Without explaining what she
means, Nichols begins by asking, "Why is getting the permits
so important to avoiding liability?" It took me several pages
to understand that she's not talking about actually applying for
new building permits for remodeling or room additions but about
getting copies of all building permits affecting a home.
After the initial confusion,
she then does an admirable job of explaining the bad consequences
for home sellers who failed to obtain required building permits,
such as having appraisers not include square footage that was
added without a proper permit or a certificate of occupancy.
Throughout the book
Nichols refers to many examples from court decisions and her personal
experiences as a consultant or expert witness. Although I recognized
some of the well-known cases, the book would have been more far
valuable if it gave the case names and citations so readers or
their lawyers can read the actual court reports for more details.
The book is filled
with practical advice, primarily for real estate agents, but also
for home sellers and buyers. For example, the author shares her
personal experiences regarding dealing with relatives and friends,
documentation of home sales transactions, and even injuries and
safety when showing a property to prospective buyers. Legal liability
is lurking everywhere, according to Nichols.
Chapter topics include
"The Liability Problem"; "Misrepresentation and
Fraud"; "The Real Estate Agents' Visual Inspection and
Disclosures"; "The Seller's Property Disclosure";
"The Buyer's Property Inspections (Due Diligence)";
"The General Property Inspection"; "Mold, Mildew,
Lead Paint, and Other Environmental Hazards"; "Material
Facts"; "Property Stigmas"; "Standard of Care";
"Seller Repairs and Credits"; "Property History";
"Rental Property Transactions"; "Title and Encroachments";
"Appraisals"; and "Excuses That Won't Work in Court."
This nontechnical book
is ideal for those who want awareness of the potential legal problem
areas in residential sales without getting bogged down in legalities.
At times the text seems to result in "overkill" documentation,
probably because Nichols has seen so many court room situations
of inadequate paperwork. On my scale of one to 10, this excellent
new book about a difficult subject rates a solid 10.
"The
No-Lawsuit Guide to Real Estate Transactions," by Barbara
Nichols (McGraw-Hill, New York), 2007, $29.95, 290 pages; available
in stock or by special order at local bookstores and public libraries
or order
with us.
(For more information
on Bob Bruss publications, visit his
Real Estate Center).
Copyright
2007 Inman News
To
Order Barbara's Book
The
No-Lawsuit Guide to Real Estate Transactions
Download, Complete and FAX
your order to:
1-760-752-1709
Download
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