To the Editor:
As a realtor from another state, I read this article and thought, there is a simple solution to this problem:
It’s not the responsibility of the realtor to disclose information about a home that he/does not own. It is the seller’s responsibility. The issue is between the new owner and the seller for not disclosing.
Also there is some responsibility on the board as well. If the home was not in compliance at the time of the sale, the board could and SHOULD file a lien or a “non compliant” instrument against the property so that when the property is sold, before it closes escrow, a title search would review to all parties that the home is not in compliance. This gives the buyer notice and then he/she can determine if they want to proceed with the sale with this condition in the title. The board would remove the lien at closing, giving clear title with a 90 to 150 day time frame for the new buyer to bring the property into compliance.
Unless there is a way for the realtor to get a document from the board on each property they sell stating there is no non-compliance on a property, they would have no way of knowing.
This is not between the buyer and the realtor. It’s between the buyer and the seller. At this point, the buyer CAN contact their title company and see if their title insurance will step in and solve this issue as well.
Bottom line, the board should file notices of lien or right to lien on all properties out of compliance to prevent this from happening. This way the seller is protected, buyer is protected. The costs and fees for filing the lien are on seller and would be paid at closing of escrow.
This is not an insurmountable problem. It’s a clerical problem with the board, a disclosure problem between buyer and seller and a state problem as it the Real Estate Commissions responsibility to protect the public.
I hope this doesn’t happen again and I hope this information helps.
Cora Carleson
Village of St. Catherine
