LITIGATION
AVOIDANCE STRATEGIES
(Clear
all disclosure techniques with your attorney.)
1.
ALWAYS QUOTE THE SOURCE
When representing
the seller, make sure you clearly note in writing that the information
they have passed on to you regarding property condition repairs has come
from them. For example, a disclosure might read "There is a stain on the
dining room ceiling. The seller has stated that it is the result of a
second-floor bathroom leak that was repaired last year." Be an "innocent
conduit of information" by being sure to quote your source.
2.
DO NOT CHARACTERIZE OR DIAGNOSE
Provide written
disclosures that omit your opinions regarding the "red flag" and its cause.
For example, instead of writing "Five large settling cracks noted in living
room wall above fireplace.".......drop the characterizations of "five"
and "large" and also the diagnostic term "settling." You end up with "Cracks
noted in living room wall above fireplace." Go for "pure disclosure" by
dropping your characterizations and diagnostic opinions.
3.
DEFER TO A QUALIFIED SPECIALIST
Transfer liability
away from you by consistently deferring to others when confronted with
most property condition questions. Verbally, get in the habit of responding
to property condition questions, rather than answering them. For example,
when asked "Why is there such a large crack in the backyard patio?".....don't
make guesses regarding tree roots or settling or earthquakes; leave that
to the appropriate experts. Say instead "That's a good question - be sure
to ask the home inspector who will be here next Tuesday afternoon. I'll
make a note to remind you - maybe he can shed some light on what might
be happening."
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