“Neighbors will talk”
Q.
As a listing agent do I have to disclose that someone has been murdered in the house?
A. Section 55-524 of the Code of Virginia makes
clear that licensees are not obligated to disclose whether a property was the site of a homicide, suicide, felony, or other act having no effect on the improvements. However, because neighbors will talk, the listing agent and seller should consider getting this information to the buyer in their own way. The agent may not disclose whether the previous occupant had HIV or AIDS.
“We are not inspectors”
Q.
What are the buyer agent’s duties to the buyer regarding material facts?
A. Virginia Code §54.1-2132 states that a licensee engaged by a buyer must “[d]isclose to the buyer material facts related to the property or concerning the transaction of which the licensee has actual knowledge.” That is a broad obligation to the buyer, but note that it is conditioned on having actual knowledge of material facts. We are not inspectors and have no duty to discover material adverse facts such as asbestos. Furthermore, the Code of Ethics makes clear that Realtors® are only obligated to discover and disclose adverse factors reasonably apparent to someone with expertise required by their licensing authority.
Volume 17 ● Issue 6
Clarification The sidebar on page 21 of the September/October Commonwealth titled “What the lawyers advise,” has created confusion in the course of attempting to explain the history of the Residential Property Disclosure Statement. Specifically, it creates confusion as to the obligation to disclose latent defects.
Let’s clarify disclosure obligations: 1. A listing agent must disclose to prospective buyers material adverse facts pertaining to the physical condition of the property of which he has actual knowledge. Please note that an important component of the previous statement is that he has knowledge of a material adverse fact. Example: If a seller has actual knowledge of a basement leak and does not tell the listing agent, the listing agent has no disclosure obligation because he has no “actual knowledge” of a basement leak. Keep in mind that actual knowledge can be gained in several ways, such as the listing agent seeing the leak in the basement herself. Article 2 of the Realtor Code of Ethics also tells us that we have no duty to discover latent defects in the property. 2. Sellers have no duty to disclose material adverse facts pertaining to the physical condition of the property other than the limited disclosures in the Residential Property Disclosure Statement. However, they may not willfully conceal defects or induce a buyer to forgo an inspection through false means. We apologize for any confusion caused.
We are not inspectors, and we have no duty to discover material adverse facts such as asbestos. NOVEMBER/December 2010 15