Caveat Emptor – BUYER BEWARE!
Buyers and Sellers must be aware of all the potential risks of purchasing or selling of a building. The following page is to provide consumers with valuable insider information about the real estate industry. This includes and is not limited to Florida Real Estate Agents, builders, building products, Home Inspectors, local housing developments with latent defects and problems, etc. The BB stands for buyer beware!!
We cannot lump all real estate agents into one category but since being in this business since 1992, we found only a small handful of honest agents (they know who they are). Our clients mean much more to us than an agents repeat business. If you choose our company your agent may try to talk you into using someone else they prefer or talk you into using someone with a cheaper fee.
#1 – READ YOUR CONTRACT WITH THE REAL ESTATE AGENT BEFORE SIGNING! Some of these contracts are for one year and may bind you to that agent regardless of whether you use them or not. The contract should be approx. 3 mos. with renewal options. Make sure there is a clause allowing termination of the contract upon written notice at any time.
#2 – READ THE ENTIRE REAL ESTATE CONTRACT BEFORE SIGNING! IF YOU DO NOT UNDERSTAND ITS LANGUAGE, HIRE A REAL ESTATE ATTORNEY!
BB Article # 13
There are three pages of disclosure documents that release the realtor and/or the broker from being sued by you, should there be any problems arising from these three subjects; Home Inspection, Chinese Drywall and Mold. If the realtor requires you to sign these documents, find another realtor. Often a home is inspected by one or more inspectors before you enter into a contract with the seller. The information from those inspection reports are supposed to be disclosed by the seller and/or realtor (realtor should have the disclosure statement and past inspection reports) See the sellers disclosure statement.
You should receive the seller’s disclosure statement immediately after the seller has signed the contract or you should request it before you submit the offer or submit the offer pending the receipt of the disclosure statement and “a favorable inspection report”. Disclosure statements are typically filled out and signed when the seller’s agent lists the house. The seller must disclose information that materially affects the value of the property. Many times these issues surface from an inspection, the buyer decides not to buy and moves on to another building. Along comes the next buyer and no one discloses the previous inspection report. Many agents prescribe to the “don’t ask don’t tell” policy, a recipe for a lawsuit. If you like this, read numbers 12 & 10 below.
BB Article # 12
SEC Inspections sent an email flyer to real estate agents. We just happen to get a copy. IT ACTUALLY STATES: “Our inspectors convey their inspection findings in a way that doesn’t Kill Your Deal”. We at SI.com have become very frustrated by unethical inspectors and realtors in our profession. Not all inspectors or realtors are created equal. Read the information they provided publicly to realtors and judge for yourself.
BB Article # 11
Every buyer must read this shortened version of the 1985 Florida Supreme Court ruling. In the landmark case of Johnson v. Davis, 480 So.2d 625, 627 (Fla.1985), the Supreme Court of Florida stated the doctrine of Caveat Emptor (buyer beware) does not exempt a seller from responsibility for the statements and representations which he makes to induce the buyer to act. The Court extended this principle to not only affirmative representations by a seller amounting to fraud, but nondisclosures that materially affect the price or use of the land.
This second article is a copy of a page from the 8th Edition of Florida Continuing Education for Florida Real Estate Professionals by Edward J. O’Donnell. It gives a more simple explanation.
BB Article # 10
A great article on Real Estate Fraud and how to spot it.
BB Article # 9
So you think an “As Is” contract holds water? Think again and read this and # 11 above.
BB Article # 8
This is an actual lawsuit won by a buyer over a Housemaster Inspection firm that was recommended by the real estate agent.
BB Article # 7
Sharper Image and Brookstone imply results that do not deliver. If you own one of these products you can get a refund.
BB Article # 6
Read about what Donald Trump has to say about home inspections and buying real Estate. From his book Trump: Think Like A Billionaire.
Donald Trump: Think Like A Billionaire – How to Get an Appraisal and a building inspection pdf
BB Article # 5
This article is about a buyers bad experience with the agent and the agent referred inspector.
BB Article # 4
Another article on real estate agents and code of ethics violations. Ignorance is no excuse
BB Article # 3
This is an important article about what to do if a buyer wants to get out of a contract: Agent Direct News.
BB Article # 2
This is an important article about home builder’s responsibilities: Trouble Brewing For New Homebuyers
BB Article # 1
This article is about Real Estate Agents Protecting Themselves Against You – Their client – The Buyer or Seller!