Property Condition Disclosure Statement

I faxed this to my lawyer but I won't get an answer till tomorrow morning, so I wanted to see if any y'all know the answer to this.

I found this thread which scared me a bit about this form, and the seller's realtor asking me to sign it.

I'm not working with a realtor on my end.

The last paragraph says:

"In the event the seller fails to deliver a Property Condition Disclosure Statement to your prior to your signing a binding contract of sale, you are entitled to receive a credit in the amount of $500. against the purchase price of the property upon the transfer of title."

So basically, if I don't get this condition disclosure by closing, and something comes up, all I get is $500.? Even if the repairs are into the thousands?

I would think inspection would find anything troubling but you never know.

Thanks for anyone who can explain. I'm not signing it until my lawyer advises me.

Re: Property Condition Disclosure Statement

Most people do not get the property disclosure statement. What this would tell you is about problems the seller knows about... Like you said any major issues will be discovered at the inspection. And you will get a $500 credit at closing.

ETA: I read the thread you linked to -
In the case of a flip - it is most likely that the seller would not know about an underlying condition of the house b/c he or she does not live there or does not live there for very long. If the property is an estate, there is no disclosure form either because the seller does not live at the property and would not know about underlying issues.

Message edited 8/20/2007 3:54:51 PM.

Re: Property Condition Disclosure Statement

Most sellers will just offer a credit of $500 rather than sign the statement since it is good for a long time. We just sold and bought a house and both times no statement was signed, it is common practice.

Re: Property Condition Disclosure Statement

Whew! Thanks!

Funny how the first house we got this far with was such a happy-go-lucky process.

Now I'm extremely untrusting and suspicious of everything.

Re: Property Condition Disclosure Statement

yea our sellers went with the $500 I was told that is common

Re: Property Condition Disclosure Statement

its definitely common practice. think about it...if you are a seller (or even if you are a buyer who someday will be a seller) would you fill out a piece of paper and sign it stating every single thing that you think could be wrong with the house and be held liable for anything that was left off of it...OR...would you rather not take any chances and just give the $500 credit?

no brainer IMO.

eta: no sellers attorney will ever let the seller sign it.

Message edited 8/20/2007 4:43:06 PM.

Re: Property Condition Disclosure Statement

So is this a credit that comes off the price of the house or a credit you get at closing?

Re: Property Condition Disclosure Statement

I believe it's a credit at closing.

Re: Property Condition Disclosure Statement

Our lawyer said he has never seen a seller actually fill out the disclosure. So you will probably get a $500 credit.

Re: Property Condition Disclosure Statement

Same with us, he is not signing it and we are getting the $500. I agree, no Seller in their right mind would put him or herself liable for something like that.

Re: Property Condition Disclosure Statement

Message edited 1/30/2009 10:26:51 PM.

Re: Property Condition Disclosure Statement

Yeah, we had an inspection and took the $500 credit also. This seems to be standard practice.