Posted by Nate(DC) on June 29, 2002 at 23:10:10:
What does the statute go on to say about the penalties for noncompliance? I would start there.
TN
Seller refuses to provide disclosure statement - Posted by igomango
Posted by igomango on June 29, 2002 at 13:51:26:
We were supposed to close mid june but the seller tried to back out at the last minute. We are trying to avoid a lawsuit so we’re trying to negotiate with the seller. He wants $8,000 to close. He’s trying to manipulate the situation. He would not provide written disclosures before and still refuses to provide them. We’re getting a property inspection report to safegaurd us. We’re in CA and a seller is required by law to provide written disclosures. I want to make the extra money, which will be held by escrow, contingent on the seller observing or performing any term, covenant, or condition of the contract. He is to receive the extra money only if all conditions are met. Can we close on the house and then refrain from giving him the extra money since he didn’t provide the mandatory disclosures? Here is an excerpt on disclosure duties for seller’s in CA:
“General Disclosure Duties: You must affirmatively disclose to the buyer, in writing, any and all known facts that materially affect the value or desirability of your Property. You must disclose these facts whether or not asked about such matters by the buyer, any broker, or anyone else or when completing a form. This duty to disclose applies even if the buyer agrees to purchase your Property in its present condition without requiring you to make any repairs.”
Any advice would be greatly appreciated.
Re: Seller refuses to provide disclosure statement - Posted by River City
Posted by River City on July 08, 2002 at 14:26:09:
Maybe the seller does not have the opinion that there are any known facts that adversely affect the value or desirability of the property. In this case, is the disclosure still required? You need to read the entire legislation. Not just one excerpt. Look it up on the Internet.
Re: Seller refuses to provide disclosure statement - Posted by David
Posted by David on June 30, 2002 at 22:39:24:
“Can we close on the house and then refrain from giving him the extra money since he didn’t provide the mandatory disclosures?”
I suspect the extra money issue would require an amendment to the escrow which would have to be signed by both parties. Probably not a good idea.
However if you are using a CAR form, there is a section on mediation which you may want to demand immediately. If the seller refuses to mediate, you have the option to sue, tie the property up for awhile, etc. Since I note that you begin by saying you want to avoid litigation (there is also a legal fees provision in the CAR form and in most forms used in CA), you may want to have a lawyer send him a tough letter pointing out his obligation under the code as well as the contract and the consequences of his action. The cost for doing this should be minimal.