Disclosures are extremely important in Real Estate. So as a Selling Agent in a deal where the Listing Agent fails to provide the required Disclosures one is placed in an awkward situtaion, which could have legal repercussions later on.
I'm representing a client in a REO transaction and the Agent represetning the bank sent me all the standard Disclosure documents provided by C.A.R. (California Association of Realtors), but wherever the Seller's signature should be is a bold rubber stamp claiming "Seller Exempt".This is not necessarily true.
In terms of the REO ADVISORY Disclosure that C.A.R. has prepared, the Seller in not exempt from the following: Natural Hazard Zone Disclosure; Smoke Detector Disclosure; Water Heater Strapping Disclosure; Lead Based Paint Disclosure; Tax Withholding Disclosure; and Agency Disclosure.
I checked with an attorney from the C.A.R. Legal Desk who advised that even without these Disclosures an escrow can close - but recommended that I confirm in writing to both the Buyer and the Listing Agent that notwithstanding the requirement, the Seller failed to provide these Disclosures.
By agreeing to close escrow without these Disclosures the buyer does not waive his rights to recourse against the Seller should he discover and be able to prove that the Seller should have made disclosures in terms of the required Disclosure documents.
Agents need to go the extra mile to protect their clients as well as themselves against potential problems that may surface after the deal closes.