Disclosure
Posted by PRO Tue, 16 Jan 2007 19:39:00 GMT
The FAR Seller’s Real Property Disclosure Statement contains a statement in the Receipt and Acknowledgement of Buyer section that specifically addresses the importance of and need for a home inspection to be conducted by an independent professional. It is important to emphasize this point with the buyer as they acknowledge receipt of the disclosure statement.
Many brokerage firms have adopted the risk management best practice of having a separate home inspection disclosure form that is reviewed with all buyers and sellers. The purpose of the disclosure is to make buyers and sellers aware of the importance of the inspections and to reinforce the legal obligation of the seller to disclose all material facts about the property. The form also serves as "defense" documentation for the transaction file. By requiring the signature of seller or buyer as acknowledgement of the discussion on home inspections and property condition, the Realtor® has documentation showing that the discussion occurred. It does not prevent a claim against the Realtor® by the seller or buyer, but does put Realtors® in a better position to defend their actions.