Real Estate Lawyer Offers Great Advice
There was a fantastic article entitled “When selling home, truth is best policy” in the Toronto Star on Saturday, May 12, 2007.
The article is written by a Real Estate Lawyer and it discusses the importance of being honest when selling a home. The article also questions a form, which real estate agents give to their clients to complete, that offers protection only for the agent, and also leaves the seller open to legal repercussions!
The article discusses a document which real estate agents use called a “Property Condition Disclosure Statement” (PCDS). This is a form which agents give to their clients to complete. At the bottom of the form is a disclaimer that states the real estate agents involved assume no liability or responsibility for the accuracy of the disclosure. This disclaimer is for “the benefit of the realtor only and not for the vendor”. The article describes an example where the owner filled out the PCDS and stated that a well was in good working order, but when the new buyers moved in, the well was dry. The sellers had to pay $46,393 to replace the well.
The author offers some lessons at the end of the article:
1) Sellers should never sign a Sellers Property Information Statement. (If you do sign one, you “should keep the name of a good litigation lawyer handy.”)
2) Buyers should always make their own investigations. These include home inspection and where there is no municipal water service, a well driller’s certificate and potability test.
3) Both buyers and sellers should bear in mind that the disclaimer “is for the benefit of the realtor only”
4) It’s always a good idea to have an agreement of purchase and sale reviewed by a real estate lawyer before it is signed. There is no such thing as a simple real estate deal”.
Why would Realtor’s provide their clients with a document which protects the Realtor, and at the same time leaves the seller open to litigation? Real Estate Agents often advertise that they have the “Legal know-how”. Here is a quote from the Canadian Real Estate Association’s website (howrealtorshelp.ca): “A mishandled document can ruin a sale, or lead to legal action. Your Realtor has the experience to recognize potential hurltes early…”. Based on the article above, you have to wonder who’s interest is protected if you use an agent?
As mentioned by the author, “It is always a good idea to have the agreement of purchase and sale reviewed by a real estate lawyer before it is signed”. This is what ByTheOwner.com recommends in our guide to selling privately. Our advice is to not sign anything until your lawyer has reviewed the contract and your lawyer has answered all your questions. After all, who is more educated on Real Estate Law, Realtors or Lawyers?
The full article can be seen at :
http://www.thestar.com/Athome/article/212301
