Seller Disclosures And Why Real Estate investors Should Get It.
Transcript:
Viktor Jiracek 00:00
I work with a lot of beginners here. Can you can you explain like what a seller disclosure is? When you use it, let’s start with that.
Chris Bounds 00:06
Yeah, every state is going to have their minimum requirements that you have to disclose. But on top of that, there’s also known defects. That’s just kind of an overarching thing. If I’m selling you my house, I know that this house had termite problems. I’ll fixed it. But I know it’s had termite problems. In the state of Texas, I need to tell you that and if I don’t, you buy it, you tear out the walls, you’re like, cool. This, this is a mess and it’s such a mess.
There’s no way, I can see that some of its been repaired and all of that there’s no way they didn’t know that and it cost you money. I mean, I’m not an attorney, but you could probably find an attorney to have a legal standing against me. I have an obligation, a legal obligation to tell you about known defects of the home. Has it flooded? Has anyone ran a meth lab? Has anyone died and is on the home? Is there a roof leak that maybe I just kind of patched up, but I know it’s there? Is there a plumbing leak behind the wall that you know, I patch up? Those kind of things. I have to tell you know, if I don’t know it, I’m not fine. Well, maybe I mean, there are, I mean, because you can get sued for anything. But there are attorneys who have, gone through before, you should have known. It’s called willful ignorance and none of this is legal advice. This is just experience in talking with attorneys. But there is what’s called willful ignorance. If you’re like someone’s trying to tell you, and you’re like, No, no, I don’t want to know that. I don’t know. They don’t tell me because I don’t have to disclose it. I mean, that doesn’t absolve you of responsibility. But at the end of the day, I have to disclose and their state and there’s federal things close, and if you don’t you just you put extra risk on yourself. Why do it?
Viktor Jiracek 02:06
Yeah. Okay. So you have to do that no matter what, whether or not you have a license. So that’s that. So finally, so you mentioned disclose value, I’m actually not familiar with that term. So when you’re buying it as a real chance to tell them what it could be worth. How does that work?
Chris Bounds 02:18
Yeah, and this is part of the realtors not necessarily having a real estate license. The professional organization for a real estate license is called realtors. Not having a license, that would be very confused as a real estate agent, you don’t actually have to be a realtor. That’s an extra step that gets you access to MLS on stuff. So that’s part of the code of ethics that Realtors invite you to have, and it’s putting the client first putting the consumer or their interests first.
I just know that just because I tell you the home is worth 350,000. I mean, that doesn’t really do much for you if you got to put 70 grand and get there. Like if you want to do that. I got some Rockstar contractors, this and that, do it. I’ll get it listed for you and get the thing sold the week , might take you eight weeks. And on top of that, like do you have the 75 Grand to do that. Do you want to do that? Like cool, but if not, we can move forward today. 205,000 Cash like you’re all done.