First things first.. I'm going to do my best to include great content, useful information, sage advice and the like from the depths of the real estate trenches. If you've got ideas or need to remind me of some of those "oh we'll laugh at this later" stories, please reach out!
Secondly, I must not that
this story isn’t actually a “good”... but it’s better than what’s to come. So it got bumped up to “The Good.”
A few years back I was working with some buyer clients on a purchase in the Willo Historic District. A Tudor style brick home, built in 1930 - it was beautiful and charming, but definitely needed some updating. My clients would have some funds from the proceed of their sale to make take this charming, historic home back to his glory days, with the modern touch they wanted. We negotiated back and forth on the purchase price to finally land on the magic number. Inspection period began, I guided my clients through their due diligence period. Finally we received the Seller’s Property Disclosure Statement - SPDS to those of you in the know. We reviewed it all of the pertinent details related to the property, and my clients signed.
Days after, the cross agent (who also holds a broker license) distributed more information to us related to the Property Disclosure Statement. Specifically, he wanted to elaborate on his Seller’s response on Lines 40 and 41 of the SPDS. The Seller indicated that there were “No Lot Line Disputes.” The agent’s later communication countered the contents of the disclosure and said “there was a lot line dispute, but it had been resolved.” Not convinced and wanting to confirm this *material* detail prior to proceeding, we knocked on the door to ask the neighbors in question. There was in fact a dispute, he hadn’t been resolved and the agent knew about all of it.
This could have very well thrown the transaction off track, or ended it all together. But without that knock on the door, my clients and their neighbors could have very well began their relationship as adversaries, armed each with an attorney to dispute the lot line and placement of the block wall. It could have ended with multiple lawsuits against the seller, the seller’s agent and the brokerage. My clients and I sat down with the neighbors and talked through options to get us to resolution, one that made everyone happy. We succeeded.
Looking back, I’d considered this a complicated transaction. I’m thankful for my background in real estate development and that the clients I was representing work in the Planning and Zoning Department. This one ended well. But this wasn’t my only encounter with why it’s imperative for buyers and sellers to have a solid knowledge of their lot lines, legal descriptions and property taxes.
Lessons:
Yes, you do have to be truthful when disclosing information regarding your property. It protects you, as a seller, from future lawsuits. If your agent or anyone else suggests the contrary, run. Quickly.
As a buyer, there is more to consider than what the inside of a house looks like or what the purchase price is. Your agent has a fiduciary duty to you, their client(s) to protect your best interest throughout the transaction. Make sure you’re aligning yourself with someone who can help you through the tricky things too. Because lot lines, lot line disputes, legal descriptions and adverse possession are not a fun lesson in home ownership. More on that tomorrow as I reflect on “The Bad.”