When property damages occur during escrow, sellers may wonder whether or not they should tell buyers. Once everything has been cleaned up and repaired, it might be impossible to tell that any problems ever existed. It is important to note, however, that condo investors have a legal right to know about these events, even if highly qualified professionals can attest to the fact that the related issues have been fully resolved.
The Residential Purchase Agreement
The Standard Residential Purchase Contract or the Residential Purchase Agreement (RPA) that is currently being used in the state of California has a special provision for these events, given that damages during escrow can and do occur. According to this document, if a seller has made disclosures prior to adverse conditions or events, these disclosures must be duly amended and submitted to the prospective buyer in a timely fashion. This portion of the RPA is designed to ensure that buyers are fully knowledgeable about the nature and condition of the Downtown San Diego condos or lofts they’re investing in.
Issuing a Timely Response to Disaster
As with all forms of property damage, the best way to mitigate these events and limit their impact is to issue a timely response by contacting the appropriate repair professionals right away. Sellers should schedule clean up as quickly as possible and document the related event as best they can. These efforts will show prospective investors that there was a concerted effort to protect property values.
What Options Do Buyers Have?
When disclosures are made concerning property damages that have occurred after offers have been submitted, buyers do have the right to rescind their offers. The RPA states that this must be done within three days of in-person delivery of this information and within five days of delivery by regular mail. This grace period is identical to that of the Transfer Disclosure Statement. It is applicable even if investors have already removed their contingencies in light of positive inspection reports.
Talk with Your Agent
It is vital to contact your agent immediately after property damages have occurred. Your real estate agent in Downtown San Diego can give you advice on how and when to make disclosures and can even recommend local contractors who can help clean things up. Should buyers choose to rescind their offers, agents can also help sellers craft plans for relisting their condos after their problems have been resolved.
Learn more about the home buying or selling process from 92101 Urban Living. We help people just like you list their properties or find the right place in Downtown San Diego to call home, including penthouses, lofts, and condos for sale in the Gaslamp Quarter, Little Italy, the Marina District, Cortez Hills, and East Village. ')}