If you are trying to sell your home in Riverside, Ca. or any other county in California for that matter you may have thought about doing it as a FSBO (For Sale By Owner). While the idea of saving money on commission is often the main driving factor there are some dangers you may be unaware of that a Realtor could actually help you avoid (saving you much more than their commission).
As one of the top Realtors in the Inland Empire I have seen my fair share of home owners that didn’t know they were putting themselves at risk with some very common beliefs. The one that I run into quite often is the myth of the “As Is” sale. While these 2 words may hold some magic power in other states to keep you out of hot water in California they mean next to nothing.
In California selling a house “As Is” simply means you refuse to do anything to the house as far as repairs or any request the buyer may have. This is far from the magic many believe these words to mean. The myth is that saying this means you are protected legally if something is wrong with the house after the sale. After all, you sold it As Is and Without Warranty.
The reality however is much different. You are still required to make any and all disclosures about material facts affecting the property. If you know the roof MAY have a leak and you don’t disclose it you can be held accountable for damages the buyer may face.
The RPA (Residential Purchase Agreement) makes this clear in Section 11a.
A. Seller shall, within the time specified in paragraph 14A, DISCLOSE KNOWN MATERIAL FACTS AND DEFECTS affecting the Property, including known insurance claims within the past five years, and make any and all other disclosures required by law.
This comes right after it says:
Unless otherwise agreed in writing: (i) the Property is sold (a) “AS-IS” in its PRESENT physical condition as of the date of Acceptance
So even though the words “AS IS” are baked into the contract itself without you even having to say it the law still requires you to make any and all disclosures that affect the property. There is no such thing as just handing a property off without warranty in California.
Having a good Realtor can help you avoid these kinds of dangers. In my practice here in Riverside and San Bernardino counties my top priority is not just getting my clients homes sold. It is also protecting them from pitfalls they may not even know about. This is just one example.
April 5, 2021 at 6:13 am | | No comment