July 5th, 2016 at 6:46 pm
A.? Inspection reports.
B.? Repair estimates.
C.? Both.
D.? Neither.
Answer: The correct answer is C. Legally, you are not required to give the inspection reports or repair estimates to a new buyer, unless they contain a material fact that affects the value or desirability of the property (that was not within the buyer’s diligent attention). However, it’s just safer and easier for you and the seller to simply give everything to the buyer, rather than try to figure out whether anything in the reports or estimates could be considered material facts.
Proponents of Answer A may want to point out that repair estimates are matters of opinion, not fact, and need not be disclosed. You may be right, but we nevertheless do not want to get sued or spend time and money going through the legal process to prove you are right! After all, repair estimates may contain certain material facts, e.g. dimensions, materials used, and so on. Furthermore, a buyer may try to argue that, by withholding a repair estimate, we failed to disclose the fact that a repair was needed or how much money the repair would generally cost.
-Thank you to Rebecca Alvarado (Pasadena Office) for suggesting this week’s legal tip.
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