San Francisco Real Estate Properties

It is my experience that Buyers will purchase almost anything, if issues, defects, and/or problems are disclosed up front.  What no one likes, however, is learning about problems after the property is under contract.   

I knew the deal was in trouble when the Homeowner’s Association (HOA) “Common Interest Development Disclosure Statement” in the Seller’s ”Pre-Sale Disclosure Package” (provided to my Buyer prior to writing his offer) stated that the HOA was not anticipating an increase in HOA dues and/or any special assessments, when in fact my Buyer’s lender request for the HOA to complete their ”HOA Condominium Certification” (after acceptance of my Buyer’s offer) stated the contrary. 

This can happen several ways and in most cases, be avoided with an observant, inquisitive, and experienced fiduciary for the Seller’s agent. 

(1).  Neither the Seller nor the Seller’s agent were monitoring the current (closed door) HOA Board of Directors’ meetings or discussions regarding budget concerns and/or possible special assessment activities.

(2).   Neither the Seller nor the Seller’s agent had provided the Buyer the most recent HOA disclosures, HOA minutes, and/or updated/current “Common Interest Development Disclosure Statement” that reflected the “anticipated” change in HOA dues.

(3).   Neither the Seller nor the Seller’s Agent had disclosed to the Buyer any potential unresolved or contemplated HOA budgetary increases, as they became known or available.

My question to the Seller’s agent:  Why weren’t these issues either disclosed and investigated  prior to putting this property on the market and at the very least, made known to a Buyer first rather than by a 3rd party?

Now, my Buyer, with this newly discovered information, will either re-negotiate the terms of the sale (in his favor) or walk away from the property.  

Sellers are able to sell almost anything (without giving away their money), if they understand their duty to disclose and their task is to chose their agent wisely.

Recently

You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.