Beginning when the Seller Real Property Disclosure Act became effective in January 1996, sellers have had to complete the Seller’s Real Property Disclosure Form as a part of selling residential real estate in Nevada. The form is quite detailed and even contains two pages in small type of Nevada law pertaining to the matter. The form and its completed contents can have significant consequences, but are often given little more than a glance or cursory thought by buyers and sellers. There are some things to be aware of in the form. The first is a recent change that says “A seller’s agent shall not complete a disclosure form regarding the residential property on behalf of the seller.” Quite often sellers ask agents how to fill out the form, but they are not allowed to assist. There are a couple of questions, however, that inevitably trip up sellers and need clarification by agents. Item 14 on page 2 talks about SNWA. That is Southern Nevada Water Authority and is unknown to most Northern Nevadans. It does not apply in the North. Item 17 is another item more prevalent in the South, it addresses Private Transfer Fee Obligations. To our knowledge, those weren’t done in the North, but they were common in the South and the state has deemed them illegal. An ADA-compliant version of the document can be had from Nevada ADA Assistance. A buyer may not waive the requirement to provide the form and a seller may not require a buyer to waive the form. It important to remember that the statement is a disclosure of the condition and information concerning the property known by the seller which materially affects the value of the property. Seller’s qualifications for disclosing are qualified and it confirms that the statement is not a warranty of any kind by the seller or agent. It further states that the disclosure form is not a substitute for any inspections or warranties the buyer may wish to obtain. Above the first table of checkboxes is the question: “Are you aware of any problems and/or defects with any of the following:” Since it isn’t a warranty, this is particularly important. Sellers shouldn’t inspect or look for things, the question simply asks if they are aware of any problems or defects. Most buyers get inspectors that are trained, licensed and bonded for the job of finding such physical issues from a disinterested third party perspective. The seller just shares what they know, and most haven’t been under their house in years, if ever, and don’t really know what’s going on. Get an inspection from a licensed inspector. Most contracts today provide for the form to be returned with the accepted offer, or within five days of acceptance. If another defect comes to the seller’s attention it must be disclosed to the buyer, but if the seller is not aware of a defect he cannot and need not disclose it. There are time constraints within which a buyer must object to disclosed defects and, if the buyer wants to rescind the agreement as provided by law as a result of defect disclosure, the rescission must be made in writing, notarized and delivered per the requirement of the law. If a seller relies on an officer or employee of the state or any political subdivision of the state in the ordinary course of his duties, or on a contractor, engineer, land surveyor, certified inspector, or pesticide applicator, they are not liable for damages. A seller that does not disclose what is later proven to be something that he knew he can be subject to treble damages, having to pay three times the damages suffered by the buyer. It is the buyer’s option to deem how the disclosed information ultimately affects them so do not withhold anything that might affect them even if it doesn’t affect you. It is their choice to make, not yours. Don’t kill it in committee, reveal it. When in doubt, disclose. Always. When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless! Jim Valentine, RE/MAX Realty Affiliates, BS.3481, 775-781-3704. dpwtigers@hotmail.com
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