Credit Hours: 6
Real estate professionals are held to a standard of reporting if they find something that is a “red flag” (a visual sign or indication of a defect), yet many are inadequately informed of what qualifies as a red flag and what their responsibility is when they find one. You are not responsible for a full inspection – a home inspector is – but since you have exposure to the home, there is an obligation to disclose what you see. Red flags always cause negotiations and can threaten sales, but they can be especially troublesome in a buyer’s market, when buyers can afford to be picky about many issues. And with as much inventory as we currently have, the individuals who are looking to buy these properties are more likely to be investors who are generally more familiar with these issues.
Recent legislation has directed you with the responsibility of inspecting properties for “red flags” – especially an extreme issue such as asbestos or mold. Brokers and agents who understand and comply with their state’s disclosure laws stand a better chance of avoiding legal liability or a sale falling through.
Limit your personal risk by being better informed of what to look for and how to correctly respond to the finding.