If I sell my house myself without a real estate agent, what is my liability exposure?
If I sell my own house without a real estate agent, what is my exposure to liability to a purchaser? Say I sell a house that has known or unknown defects. What is the liability I’m exposed to, if this isn’t disclosed to the purchaser? I’m sure all states are different, but I’m sure there are some general rules. Specifically, I’d like to know what Nebraska’s are, if possible. Thank you in advance.
Tags: nebraska, purchaser, real estate agent
June 20th, 2010 at 9:20 pm
You have to disclose all known defects to the seller. If you don’t disclose something that turns out to be a problem, you can be sued. You really need to have an attorney handle the closing.
June 20th, 2010 at 9:20 pm
You need an attorney handling the closing only if you reside in a state that attorneys do the closings. In the states that don’t require an attorney just open escrow. Between escrow and the mortgage broker 99% of your problems will be solved.
You are required by law to disclose any defects you know that exist in the property. There should be a list of things that you must disclose you might find this list at your local real estate board. Sometimes as a public service they will simply give you one if you ask for one.
If you don’t know of a defect you can not report a defect. Don’t be foolish, if the sewer pipes connecting you to the city sewer line is damaged they didn’t get that way on Monday one day after closing, so sure you are going to be liable and possibly sued if it is found out you had a problem with your sewer before.
I hope this has been of some use to you, good luck.
"FIGHT ON"
June 20th, 2010 at 9:20 pm
Whether or not you used a real estate agent has nothing to do with the case. In general, you are obliged to tell a prospective purchaser anything you know about the property that might influence his decision to buy it.
June 20th, 2010 at 9:20 pm
Also get a seller’s title insurance policy so you are protected against claims on the title. They will also handle, closing, escrow and document preparation. You’ll also want a buy-sell agreement with the disclosure of known defects. The seller is going to want a building inspection and perhaps a termite/radon inspection.