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I did not realize this was a common practice in your area. I retract my original comment. If you've done your due diligence, are satisfied with the inspection, still believe the house is priced right considering the work it needs; then go for it.
In other states, if you don't know the answer to something, that's an acceptable response on a disclosure.
But after a couple of people mentioned it, I looked into it a little more and yes, this is one of those quirky New York real estate things where the common practice is to pay $500 in lieu of a disclosure. Most sources said there is actually a difference between downstate and upstate, and disclosures are used upstate.
But not giving a disclosure is not a complete get out of jail card - the seller cannot fraudulently conceal a defect they are aware of.
This is a tough one to me - having only purchased and sold in states where disclosures are required, the idea of buying a property without one seems so risky. But if the customary practice is not to use them, then you may just have to accept that because it will end up being the same for any property you choose to buy.
Usually I pay the 500 bucks, make you sign disclosure house built before 1979 and may have lead, at closing we throw in as-is.
Bigger issue is Flood Insurance. You have to disclose if home is in a flood zone. And most folks do as unless you pay cash bank will tell you and make your buy it.
But quirky part is did you accept a FEMA payout, how much damage did you get in prior floods, how many claims have you had, how high was water in prior floods etc. And who did you use to fix it and did you get permits and have receipts.
Realtors want commission and owners want to sell. So I am more worried stuff like that plus abandoned wells, cess pools, oil tanks etc.
Abestos, old roof, lead paint etc are easy breezy.
I am a big as is guy. But I ran screaming from a house with a cess pool, buried oil tank and well water once.
Great, we poop, dump oil and drink our water from same place and it was an old house so who knew how many abandoned wells, cesspools, and oil tanks out there.
Same house with sewers, town water and oil tank indoors no problem.
The asbestos tiles in the basement are only covering a small portion of the basement - the landing when you reach the bottom - and they are already coming up off the ground. There were a few tiles loose and flipped up, and other ones seemed to be on their way up. I suppose someone had started to remove them. If we do move forward with the asbestos tile removal by the seller, we will request an independent report following the removal.
I am not an experienced buyer and this will be my first home purchase.
Yes, in New York, apparently it is common for sellers to offer $500 credit as opposed to providing disclosures and it is recommended by their attorneys.
I'm going to request the seller's disclosures over the $500 credit and see what they say.
According to I believe Zillow, the seller has been trying to sell the house since they first purchased it, about 3 years ago. Do you think they acquired the house, realized something was wrong and tried to get rid of it quickly?
Let me provide some more information about the property.
It's not the seller's primary residence.
According to multiple websites, the seller purchased it for about $152K three years ago, and we have a binder agreement for $129K.
It seems that she has not put any work into it or maintained it whatsoever.
The kitchen and bathrooms will need to be renovated.
The inspection revealed the following:
- there are asbestos tiles in the basement, which the seller says she will remove
- the windows need to be replaced or re-glazed
- there is moisture in the basement
- hot water heater in basement has minor rust and is leaking
- circuit breaker in basement has minor rust
Here are some negative points about the property:
- the driveway is shared with the property next door
- not too much land
- not on the main highway, but can hear vehicles from the main highway while inside the house
- only .49 acres of land
- old house, needs a lot of repairs and renovations
Thanks!
Um -- Are there any positive points about this property? Why in the world do you want it? Is the land valuable?
Hey everyone, hope all is well and you guys can provide some advice on my situation.
I'm purchasing a 1940 colonial stick frame house in the Catskills in upstate New York.
The seller says that they want to give me a $500 credit instead of providing disclosures regarding the house.
I've already had an inspection performed.
My gut feeling is that I would rather have the disclosures than $500. Not only is $500 a low amount of money when you consider repairs and renovations, but I want to know what the seller knows about the house.
The inspection went well, there were a couple issues here and there, but mostly cosmetic. Is that enough to be comfortable moving forward? Or would you request the seller's disclosures?
Thanks!
There will be rot. Inspectors stipulate in their contracts that they don't open things up for close inspection.
I think you're using the wrong lenders if you work with one that requires a disclosure notice. Been doing this 15 years and not a single lender has ever asked for, much less required, the disclosure notice on any transaction I've worked.
A disclosure is a "notice", not part of the actual binding contract between buyer and seller as a contract is something all parties agree on, and a buyer not like nor agree with a disclosure, especially if their inspection turns up something different.
Nonsense, Falcon. There is nothing wrong with lenders requiring a disclosure notice. As a matter of fact, a smart lender will require just that. In TX, a seller MUST provide a disclosure. I live in Texas, as do you. It is not negotiable. The seller is telling the buyer, "I know that the home has these appliances and other items. These things work/don't work. These severe problems exist/don't exist, and existed during my occupancy, or didn't."
It is not at all about the buyer "agreeing" with the seller on the disclosure. Whatever problems with the home either happened while the seller occupied them or they didn't. It isn't about what is working at the time of the inspection because the systems may have been broken during the seller's occupancy and be fixed now. And of course, general inspectors aren't certified in every type of inspection, thus cannot give their opinions on termite damage/mold, septic, etc. An honest disclosure is so important that if the buyer discovers the seller has deceived him/her on the disclosure, the buyer can bow out of the contract without penalty.
Here is the TREC standard seller's disclosure for your reading pleasure:
Hey everyone, hope all is well and you guys can provide some advice on my situation.
I'm purchasing a 1940 colonial stick frame house in the Catskills in upstate New York.
The seller says that they want to give me a $500 credit instead of providing disclosures regarding the house.
I've already had an inspection performed.
My gut feeling is that I would rather have the disclosures than $500. Not only is $500 a low amount of money when you consider repairs and renovations, but I want to know what the seller knows about the house.
The inspection went well, there were a couple issues here and there, but mostly cosmetic. Is that enough to be comfortable moving forward? Or would you request the seller's disclosures?
Thanks!
Run away from this deal, that is a huge red flag.
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