Getting real estate disclosures right the first time

Starting out as a real estate investor, the one thing you never have time for checking “where you have been”. In terms of houses or properties you have sold, you are always looking ahead, never knowing trouble could be right behind you.

Real estate disclosures are becoming a huge issue in California legal circles due in part to the little known yet powerful natural hazard disclosure statement for new home purchases. The NHD business is a disclosure industry that is standardized real estate law in Sacramento, yet is vastly unregulated.

So what does this mean to the rehab fix and flip investor who just sold five properties. It means if the investor purchased a low cost NHD from an outsourced natural hazard disclosure company, the seller can come back at you legally. How so? If the new tenant starts finding issues with the house they are buying, they may start digging deeper. Upon either research in finding a full due diligence NHD report themselves or using an attorney, the buyer can enact a lawsuit against the seller.

Seller disclosure laws are becoming more of an issue. Recently a luxury property in California was the setting for a seller disclosure lawsuit awarded over $5M. Don’t let this happen to you, as you are looking around for the best investment properties, investment financing and other things on bigger pockets don’t forget to get the best real estate information on a property for every reason. The companies I work with have been in the real estate industry since 1976. I recommend finding companies of this stature to assure your next deal has the necessary disclosure mandates.