March 18th, 2011 at 11:10 pm
If a claim arises out of one of your transactions, you should know that the
TDS, AVID and the SPQ become the most scrutinized documents in the transaction file. We are seeing some deficiencies in these disclosures that, as your legal counsel, we find troubling. We rely on your disclosures in the defense of the claim and when these disclosures are devoid of relevant information, your exposure and the value of the claim increases significantly.
For example, we have come across AVIDs that are virtually blank. As you know, whether you are a listing, selling or dual agent, the law requires that
you must conduct a “DILLIGENT VISUAL INSPECTION OF ACCESSIBLE AREAS” even for properties that are TDS exempt. New Construction is not an exception. There is ALWAYS something to note.
Placing a check mark, the word “fine” or your initials next to each line on the AVID will not suffice. Describe what you see in your visual inspection and do not use adjectives such as: hairline, insignificant, superficial, minor etc…when describing defects.
The AVID should be prepared simultaneous with the TDS and provided to the buyer when the TDS is provided. Alluding to the AVID in the TDS and not delivering it with the TDS is negligent. PLEASE print or handwrite legibly. If we can’t read the AVID/TDS the buyer probably struggled with it as well. If you represent the buyer and the TDS/AVID are confusing or not legible, demand an explanation or clarification in writing from the listing agent.
This is a document reflecting YOUR visual inspection. Do not rely exclusively on the TDS and/or the Physical Inspection Report as sources of information to complete your AVID. Expect and request a completed AVID from the other broker/agent in the transaction.
Agents that take disclosures seriously and take the time and effort to adequately complete disclosures keep themselves AND their clients out of trouble and out of court!
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