A new report by the National Association of Realtors shines a bright light on the dark side of all the distressed sale deals in Sarasota and across the country.
A survey of realtors has outlined in what areas they expect the top legal battles and pitfalls will be over the next two years. Short sales and REOs are implicated in all three of the top issues – disclosure, dual agency and breach of fiduciary duty.
76 percent of realtors expect the number of disputes around these issues to rise. Not surprisingly, a panel of realtors, brokers, lawyers and educators has cited disclosure to be a main culprit in distressed property legal issues. The report indicates that material defects affecting a property are often not being disclosed by banks and listing agents, often due to the seller not having true first hand knowledge of the property.
Short sales have historically caused issues with a lack of standard procedures for sellers and banks to follow. Many listings are not disclosed to be very close to a short sale situation, and most are listed “As-is”, which recently seems to have led to a decline in comprehensive and accurate seller disclosures.
Having a buyer’s agent can help significantly in avoiding these issues. For one, they represent only buyers, and so dual agency – the same entity representing buyer and seller – is never an issue. Representing the buyer solely also guarantees a clearer definition of fiduciary duties.
Outside of the legal arena, having a buyer representative on your side protects in many other ways. They have in-depth knowledge of neighborhoods and values, and will warn you of any pending issues which may affect the home. They will recommend you conduct thorough inspections with a qualified third party not affiliated with the bank or seller.
True Real Estate always recommends that you also have a local Sarasota area real estate lawyer on your side, especially when dealing with short sales and REO’s. They will work towards a fair and smooth process, as well as ensure clear marketable title when the property changes hands.
There is no disputing the fact that there are some fantastic deals out there in the Sarasota real estate market. However, it has never been more imperative to select and work with a buyer’s agent, who will represent you solely in your transaction. True Real Estate is proud to be one of the few full service, buyer’s agencies in Sarasota real estate.