Ron Rossi Real Estate Attorney at Rossi, Hammerslough, Reischl & Chuck
Ron Rossi, Real Estate Attorney with Rossi, Hamerslough, Reischl & Chuck

The ABC’s of buying, selling

Making good deals requires awareness, information, right agent

 

Do you really need the help of a real estate agent when you sell or purchase a home? How do you find a good agent? What does the seller have to disclose about the property to a potential buyer? Does the buyer have any responsibilities besides paying the agreed price?

There are so many issues involved in buying a house, it’s hard to know where to turn for advice.

Sellers and buyers know it has been tough out there in the 1990’s real estate market. Interest rates dropped and remain relatively low, but buyers are still cautious. They know property does not appreciate as it did in the 70s and 80s. They are wary of buying a house that may have undisclosed problems that will cost them money in the future.

Don’t count on appreciation

In the past, appreciation helped a property owner recoup his or her maintenance and repair costs. Now it doesn’t. This climate has resulted in more lawsuits by buyers against sellers and real estate brokers for not disclosing issues such as property defects or neighborhood problems.

Over the last few years, complicated legislation has been passed regarding various disclosure statutes impose on sellers and brokers. Sellers are now required to fill out a mandatory statement disclosing the condition of the property and all problems which they are aware. Buyers have had to become more sophisticated about investigating properties condition. Both need knowledgeable agents to protect them.

The average real estate contract and accompanying disclosure statements run about 15 pages. If you add lender, escrow and title documents, the parties to a residential home transactions can easily have 100 or more pages to digest, making it easy for misunderstandings or mistakes to occur.

Lawyers have seen an increase in the number and types of lawsuits being filed as sellers and buyers look to the courts for recourse. The fact is that in 1995 we live in a litigious society. Now that appreciation or favorable tax laws no longer afford economic relief, people view lawsuits as a way to obtain monetary damages, get out of deals or both.

For instance, you sell your home, you retire and three months later you find yourself on the receiving end of a legal action, involved with lawyers, the court system, emotional trauma, loss of time and money. Fights over a $10,000 property defect can result in $50,000 in attorney’s fees and costs. What do you have to do?

How this column will help

With this column, I hope to help you avoid a lawsuit altogether. I will start with the basics – will buyers and sellers should be aware of when listing, selling and purchasing homes.

Some of the things to look for include:

  • Finding the right agent. I will tell you how to interview potential agents, and how good agent can help you prepare your home for listing and guide you through every stage of the purchase or sales process from contract through close of escrow.
  • The disclosure statement. I will discuss what sellers are required by law to disclose about their property. I will let you know about potential environmental hazards in residential property and how a buyer can learn more. I will talk about what has “as is” really means.
  • Preventive awareness. I also want to stress the kinds of things sellers and buyers can do to avoid problems during and after the transaction. I will make you aware of alternatives when problems do arise and how to avoid lawsuits.

Lawyer, realtor, teacher

I’m a practicing attorney whose interest in real estate evolved naturally from my families background in the business, since both my father and uncle were real estate brokers. I sold property throughout college and law school. I started practicing law in San Jose in 1970, concentrating solely on real estate matters, and now represent real estate brokers, lenders, title companies, developers and other associated with real property. I’ve taught real estate courses at foothill and D Anza colleges. I am active with the California Association of realtors and frequently conduct lectures for real estate agents.

Future articles will be geared to helping buyers and sellers understand how current market conditions and real estate laws can influence every transaction they make.

Atty. Ron Rossi is a senior partner with Liccardo, Rossi, Sturgis and McNeil in San Jose. Write him in care of the San Jose Mercury News, 750 Ridder Park Dr., San Jose, CA. 95190

 San Jose Mercury News, Saturday, March 4, 1995

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