REPC Section 7: Seller Disclosures and Stigmatized Property (Episode 29) S2 E14

The Utah Real Estate Show

Watch this episode on YouTube.com: https://youtu.be/6_LhrGj0gus

What are you required to disclose when selling a house? What are you allowed to ask about when you're buying a house? Material facts (must be disclosed), but potentially interesting information that doesn't change the value of the home need not be disclosed. But remember, if a buyer asks a specific question about any aspect of the property, a seller MUST tell the truth. There's no protection for lying about real estate.

0:59 - Story time by Aric. The biohazard cleanup adventure. An individual died from natural causes in his home. There was a biohazard cleanup in advance of the estate sale. "Do I have disclose that someone died in here?"
5:29 - You do not have to advertise that someone died in the property but if the buyers ask, the sellers have to reveal the truth.
5:53 - Same thing with "cleaned" meth. If it's been cleaned up, it doesn't have to be disclosed.
6:12 - This is called "Stigmatized Property". Includes murder, suicide, public intrigue, paranormal activity, criminal activity, debt collection, hazardous material, and minimal stigmas.
6:52 - The big one in Utah is Meth. If it is not "currently contaminated," you don't need to disclose. If you don't KNOW, you can't disclose it. In other words, if you suspect something, that's not the same as knowledge of something.
8:33 - Most people think the seller disclosure document is all there is...but REPC section 7 outlines several other disclosure requirements: lead based paint, environmental problems, builder or zoning code violations (including non-permit improvements), the CC&Rs, rental contracts, preliminary title report, water shares, etc. 7A to 7L.
11:30 - Sellers might not want to fill it all out. "Wouldn't you want these documents if you were buying the home?"
12:35 - Tyler's pet peeve: seller's provide the CC&Rs! Don't make the buyer or the buyer's agent track it down. The seller has easier access.
13:29 - Rentals and short-term bookings. Seller has to disclose this information. If they don't, the seller is in breach.
14:59 - When can a buyer back out on a failure of the seller to disclose? Well, in the worst case, it will land in front of a judge. So, think like a judge. If it feels like the seller is trying to withhold, the judge is going to penalize the seller.
15:25 - Listings today could go VERY quickly. If a buyer puts up, say $15,000 in earnest money, and the seller fails to disclose information, the seller must come up with $15,000 because they defaulted. Ouch!
18:03 - What'd we learn today?
19:46 - Bloopers.

*No ghosts were harmed in the filming of this real estate discussion.

Please contact us to tell us you love us, you want to hire us! Call or text:

Realtors with Hive Collective at Presidio Real Estate:
Tyler Cazier: 801-210-0230
Aric Wiszt: 801-228-7687

Lender with Elite Team at Security Home Mortgage:
NMLS: 178787
Jason Christiansen: 801-669-7271
NMLS: 240472

A Production with Security Home Mortgage's Jason Christiansen, and Hive Collective at Presidio's Tyler Cazier and "Mr. Suit" Aric Wiszt.