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Old 08-17-2010, 06:43 PM
 
228 posts, read 728,381 times
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Quote:
Originally Posted by rjrcm View Post
Yes, AZ agents must disclose any adverse material facts they know about the property. Banks will not disclose. Agree with Rakin, get a thorough inspection.
While researching an REO for purchase I discovered a number of deficiences, e.g. unpermitted additions and work, septic violations, mold, plumbing problems, etc. For some reason the bank (seller) requested that these all be itemized in the "As-Is" Addendum that was attached to the tendered Purchase Contract. My offer is now dead and I no longer have any interest in the property. But is the selling agent (in AZ) or bank required to pass this information along to any other prospective purchaser?
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Old 08-17-2010, 06:48 PM
 
228 posts, read 728,381 times
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Quote:
Originally Posted by Rod&Pam View Post
I bought a forclosed duplex in Overland Mo. The city mailed a letter to the bank a year earlier alerting them that the zoning was changed and the duplex must be changed to single family.. The bank did not disclose this letter.. There was obviously no disclosure Statement,, But, Given they knew about this before hand,, Are they responsible for this disclosure?? I'm not asking for "Condition" disclosure, I did buy it "As-Is", but it seems to me this is a little extreme to allow this to be just dumped like that... Any comments??
Good question. I look forward to a response.
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Old 08-17-2010, 07:38 PM
 
Location: Tempe, Arizona
4,511 posts, read 11,883,460 times
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Quote:
Originally Posted by Trump View Post
While researching an REO for purchase I discovered a number of deficiences, e.g. unpermitted additions and work, septic violations, mold, plumbing problems, etc. For some reason the bank (seller) requested that these all be itemized in the "As-Is" Addendum that was attached to the tendered Purchase Contract. My offer is now dead and I no longer have any interest in the property. But is the selling agent (in AZ) or bank required to pass this information along to any other prospective purchaser?
If the selling agent is aware of the issues, the agent must disclose them to parties involved in the sale. Some agents will note such deficiencies in the MLS listing. Proving that they know of the problems may be difficult. There also may be concerns about the accuracy of the information. Did the seller agent and/or bank seller verify that the itemized issues, were in fact real problems? Were the problems found and documented by a licensed inspector?
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Old 08-18-2010, 09:47 PM
 
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Again, The information provided to me by an attorney I hired this morning is simple,, The banks don't get a free pass on Material Facts, Foreclosure or Not. If they have prior knowledge of anything that may influence the buyers decision to buy or not, or how much to offer, or the terms under which they may offer, They MUST Disclose just the same as any other Seller.. No Seller is required to disclose that which they have no knowledge of, but they do have to disclose what they know.. As I understand it,, The Seller Agent is equally responsible for those Disclosures.. Prior Knowledge = Must Disclose No Matter What..
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Old 08-19-2010, 07:12 AM
 
228 posts, read 728,381 times
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Quote:
Originally Posted by Rod&Pam View Post
Again, The information provided to me by an attorney I hired this morning is simple,, The banks don't get a free pass on Material Facts, Foreclosure or Not. If they have prior knowledge of anything that may influence the buyers decision to buy or not, or how much to offer, or the terms under which they may offer, They MUST Disclose just the same as any other Seller.. No Seller is required to disclose that which they have no knowledge of, but they do have to disclose what they know.. As I understand it,, The Seller Agent is equally responsible for those Disclosures.. Prior Knowledge = Must Disclose No Matter What..
Makes perfect sense.
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Old 08-19-2010, 08:29 PM
 
24 posts, read 48,850 times
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Quote:
Originally Posted by Narfcake View Post
The banks, no, in which their reason is that they just crunch numbers from a desk hundreds or thousands of miles away.

The listing agent ... yes on visual and if there's anything readily apparent with it.
My attorney tells me EVERYONE is responsible for material fact. A bank or finacial institiution or John Doe or Ellen Smith,, It doesn't matter, If you have material knowledge about a property, you MUST Disclose that information. That's why the banks don't allow for inspections or any repairs, They can limit their exposure to material knowledge, consequently limiting liability.. Further, the listing agent is responsible for asking the right questions to disclose ALL the Material fact,, They're paid to make sure a transaction is legal, That IS the purpose of The agent,, otherwise, why would anyone pay them 6% (Sometimes more) of their selling price??? Understand,, That's 12,000.00 on a 200K house.. I don't know about anyone else here,, but I can certainly do my own real estate deals if they don't need to be done legally... It seems to me that some people just refuse to use simple logic in their comments here.. I think we should all just ask ourselves 1 question in every deal,, and the problems would be far less... "Where's the Fairness"???
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Old 08-19-2010, 08:49 PM
 
Location: Tempe, Arizona
4,511 posts, read 11,883,460 times
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Quote:
Originally Posted by Narfcake View Post
The banks, no, in which their reason is that they just crunch numbers from a desk hundreds or thousands of miles away.

The listing agent ... yes on visual and if there's anything readily apparent with it.
Quote:
Originally Posted by Rod&Pam View Post
My attorney tells me EVERYONE is responsible for material fact. ...
I don't think anyone here is disputing what your attorney said. Narfcake and others are saying banks don't provide disclosure statements. However, even so, if they have adverse material facts about the home, they are legally bound to disclose them.
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Old 08-19-2010, 09:06 PM
 
Location: Cary, NC
33,436 posts, read 58,033,344 times
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Quote:
Originally Posted by Rod&Pam View Post
My attorney tells me EVERYONE is responsible for material fact. A bank or finacial institiution or John Doe or Ellen Smith,, It doesn't matter, If you have material knowledge about a property, you MUST Disclose that information. That's why the banks don't allow for inspections or any repairs, They can limit their exposure to material knowledge, consequently limiting liability.. Further, the listing agent is responsible for asking the right questions to disclose ALL the Material fact,, They're paid to make sure a transaction is legal, That IS the purpose of The agent,, otherwise, why would anyone pay them 6% (Sometimes more) of their selling price??? Understand,, That's 12,000.00 on a 200K house.. I don't know about anyone else here,, but I can certainly do my own real estate deals if they don't need to be done legally... It seems to me that some people just refuse to use simple logic in their comments here.. I think we should all just ask ourselves 1 question in every deal,, and the problems would be far less... "Where's the Fairness"???
Most banks here allow for inspections, although some are requiring inspections prior to writing the offer.
Some will do repairs, but most will not.

I'm curious what zoning the listing agent reported in the listing, and the source of the listing agent's information.
Did your offer and contract indicate that the property must be zoned for the current and/or proposed use?

Your attorney may be right, in your locality. I would not know.
One issue you are experiencing is the confusion caused by posting an opinion of local law in a forum that covers the whole country.
Regulations vary from state to state, and in my state there are definite exceptions to disclosure requirements:
From the NC General Statute

Chapter 47E.
Residential Property Disclosure Act.

47E‑2. Exemptions.
The following transfers are exempt from the provisions of this Chapter:
(1) Transfers pursuant to court order, including transfers ordered by a court in administration of an estate, transfers pursuant to a writ of execution, transfers by foreclosure sale, transfers by a trustee in bankruptcy, transfers by eminent domain, and transfers resulting from a decree for specific performance.
(2) Transfers to a beneficiary from the grantor or his successor in interest in a deed of trust, or to a mortgagee from the mortgagor or his successor in interest in a mortgage, if the indebtedness is in default; transfers by a trustee under a deed of trust or a mortgagee under a mortgage, if the indebtedness is in default; transfers by a trustee under a deed of trust or a mortgagee under a mortgage pursuant to a foreclosure sale, or transfers by a beneficiary under a deed of trust, who has acquired the real property at a sale conducted pursuant to a foreclosure sale under a deed of trust. Seems to be applicable to banks selling foreclosures.
(3) Transfers by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust.
(4) Transfers from one or more co‑owners solely to one or more other co‑owners.
(5) Transfers made solely to a spouse or a person or persons in the lineal line of consanguinity of one or more transferors.
(6) Transfers between spouses resulting from a decree of divorce or a distribution pursuant to Chapter 50 of the General Statutes or comparable provision of another state.
(7) Transfers made by virtue of the record owner's failure to pay any federal, State, or local taxes.
(8) Transfers to or from the State or any political subdivision of the State.
(9) Transfers involving the first sale of a dwelling never inhabited.
(10) Lease with option to purchase contracts where the lessee occupies or intends to occupy the dwelling.
(11) Transfers between parties when both parties agree not to complete a residential property disclosure statement. (1995, c. 476, s. 1.)


And, across the board, any Seller in NC can make "No Representation," regardless of knowledge of material facts.
They just cannot lie and say there are no issues when they know there are, but can legitimately avoid disclosure via "No Representation."

NC Residential Property Disclosure Form
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Old 08-21-2010, 07:45 AM
 
Location: MID ATLANTIC
7,723 posts, read 18,519,853 times
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Banks acquiring property through foreclosure are exempt from many of the typical addendums required for FHA financing, such as the Amendatory Clause. This is the clause in the contract that states the home must appraise for at lease the sales price.

If I had either of those disclosure situations happen to me, enough to make me not want a home and kill a contract, the cat in me would want to pounce on the buyer the day after closing and ask if they knew, this, this, and this. Then give him my name and number if the sparks flew. However, that's just a daydream. I'm human.
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Old 10-31-2011, 08:58 PM
 
1 posts, read 1,750 times
Reputation: 10
Default handyman fell through floor on a foreclosure

We recently were to go to closing Oct. 27th on a property in MB, SC. My handyman was let in by realtor and was there alone with son and nephew. They went to measure floor and fell through, after getting out he continued to take floor out. Found subfloor was compromised and found wet/mildew/mold. The laminate on top was not molded nor the foam that goes underneath. We believe the Bank of North Carolina and listing agent knew. Are they required to tell in SC things wrong with property? We backed out and wondering if handyman fixes to same condition before is that legal? It was unsafe before, unsafe now and will continue to be unsafe after we put back to a showing condition.
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