Sellers listing real property for sale in Pennsylvania typically fall into one of two categories. Many people put a lot of effort into improving and staging their real property and timing when they list it in order to optimize the return on the transaction. The goal is to receive as much money as possible for the sale of the property.
Other people want a quick and convenient transaction. Individuals may not have the time, money or physical ability to make repairs to the property. They may not want to involve themselves much in the transaction. Their goal is to eliminate the obligations of ownership and receive some money for the property based on its fair market value.
Those who fall into the second category might decide to list their properties in as-is condition. The idea is to push for a quick sale without making any repairs. Can sellers avoid disclosure requirements by listing their properties in as-is condition and indicating a lack of knowledge on disclosure paperwork?
Sellers have to provide accurate information
Real estate disclosures are a critical component of any real estate transaction. Sellers have an obligation to inform buyers of any known issues with the property, including latent defects that might be difficult to identify during inspections.
While buyers purchasing properties in as-is condition do accept responsibility for making necessary repairs, they still have a right to know about established issues with the property. Sellers who list properties in as-is condition can typically expect lower offers because of the implied repair responsibility that transfers to the buyers.
Despite selling for a lower price, properties listed in as-is condition could still lead to buyers taking legal action against the seller and possibly their real estate agent in the future. Provided that the buyer can prove that the seller knew about the defects before listing the property and did not disclose them, the buyer might be able to request compensation for repair costs or the reduced value of the property.
In most cases, as-is listings are not as protective as sellers might hope. Honestly disclosing defects or investing the time and money necessary to address them before the transaction can protect sellers from lawsuits later. The effort could also yield better returns on the transaction by attracting buyers willing to pay a reasonable price for the property.
Learning about and complying with Pennsylvania’s real estate laws is crucial for the protection of those intending to sell real property. People dealing with properties that require repairs often need assistance to ensure that they adequately protect themselves from liability and the possibility of future lawsuits.