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Property Disclosures

This guide provides an overview of property disclosure requirements in Ohio, including types of properties where disclosure is required, exceptions to disclosure, the agent's duties, methods of delivery to buyers, and definitions of key terms.

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Property Disclosures

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  1. Property Disclosures

  2. Class GuidelinesTurn off cell phones, PDAs, etc. ParticipateHonor Break Time

  3. Property Disclosures Objectives1. List the types of properties where a property disclosure is required. 2. List the exceptions for the use of a property disclosure.

  4. Property Disclosures 3. Review the agents duties when the property disclosure is received from the seller/s. 4. List the methods of delivery to the buyer/s and analyze the consequences if the buyer does not receive a copy of the form before the offer is written.

  5. Property Disclosures 5. Define: patent defect, latent defect, caveat emptor, material fact, and material defect.

  6. 5302.30 Property disclosure form requiredfor all residential real property transfers.

  7. Any SaleLand installment contract Lease with option to purchaseExchangeLease for a term of ninety-nine years and renewable forever

  8. Residential real propertymeans real property that isimproved by a building or other structure that has one to four dwelling units.

  9. 14 Exceptions 12. A transfer that involves newly constructed residential real property that previously has NOT been inhabited

  10. Property Disclosures Filled out by seller/sTo the best of the seller’s knowledgeon the date it was signed

  11. Are you using the correct form?

  12. SuggestionsAt listing - Give to seller/s

  13. Ohio law does NOT prohibit youfrom filling out the form for the seller. However…

  14. Contract Law Any ambiguity in a contract will be construed against the writer….Which includes filling in the blanks!

  15. Best Business Practice Let the seller/s fill out the form. (Unless you are the seller.) Do NOT be present when the seller is filling it out.

  16. Your duties when the property disclosureis receivedfrom the seller…

  17. Is every section filled out?

  18. Did the sellerinitial and date every page?

  19. Is the same address across the top of every page?

  20. Did the seller sign and date?

  21. Delivery to Buyer

  22. Be sure buyers see this paragraph.

  23. Always... Have the seller/s fill out and sign the form. Give a copy to the buyer/s. Keep copies for 3 years.

  24. What if the seller/s refusesto fill out the form? 1. Note it on a form and keep it with your records. 2. Send a letter to the seller/sinforming him/her that the lawrequires the form to be completed.

  25. Can I accept the buyer’s offer if the buyer has not received the form? Yes…but thebuyer has a right to rescind…

  26. Pursuant to ORC Section 5302.30(K), if this form is NOT provided to youprior to the time you enter into a purchase contract for the property, you may rescind the purchase contract by delivering a signed and dated document of rescission to Owner or Owner’s agent…

  27. Provided the document of rescissionis delivered prior to all three of the following dates: 1) the date of closing; 2) 30 days after the Owner accepted your offer; and 3) within 3 business days following your receipt or your agent’s receipt of this formor an amendment of this form.

  28. If the condition of the property changes after the seller has completed the form, is the seller requiredto fill out another form? Seller “may” amend the formNOT required by law. Recommend the seller see his/her attorney if they refuse to amend.

  29. Latent – Too late…you found the defect after closing!Hidden defect What is the difference between a latent and patent defect?

  30. Patent DefectIf you look, you will see it!

  31. Buyer Beware!Encourage the buyers to have their own property inspection! Define: Caveat Emptor

  32. For purposes of this section, material defects would include any non-observable physical condition existing on the property that could be dangerous to anyone occupying the property or any non-observable physical condition that could inhibit a person’s use of the property. Definematerial defect.

  33. Define material fact.

  34. Black’s LawDictionary Of having such a nature that knowledge of the item would affect a person’s decision.

  35. Property Disclosures Material facts could include…Stigmatized propertySexual offenders Environmental issuesWould it affect the party’s decision if they knew?

  36. Megan's Law Direct buyers to sexual offenders database www.esorn.ag.state.oh.us.

  37. Property Disclosures If you have a question… See your broker or manger!

  38. Define imputed knowledge.

  39. Black’s LawDictionary Knowledge attributed to a given person, especially because of a person’s legal responsibility for another’s conduct. The broker’s imputed knowledge of the agent’s dealings.

  40. “If I know, then everyone in the transaction knows!” If knowledge regarding theproperty condition changes, just because you know, it doesn’t mean everyone else knows.

  41. “If I know, then everyone in the transaction knows!” Update the property disclosure form, MLS information, websites, flyers, etc.

  42. Great Environmental Issues PowerPoint presentation at the ODRE website!

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