Seller refuses to provide Residential Disclosure Form

Buying & Selling Real Estate
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Seller refuses to provide Residential Disclosure Form

David Young
Investor · Lima, OH · Member since 2019 · 8 posts · 3 votes

I am looking at buying a package of 3 houses from a seller who is selling off his rental portfolio of 70+ Single family homes. They were all listed individually on the MLS, so I packaged 3 of them together to get a good price. Once we had an accepted offer, we requested residential disclosures forms, and the seller's agent informed us that the seller is not providing residential disclosures for these properties. Does anyone have recommendations on what to do when a seller refuses to provide a residential disclosure?

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Marc RiceBusiness Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
5y

@David Young

In my real estate agent classes, we were told if the seller does not provide an RPD prior to close the buyer has the right to terminate. There’s nuances to it and you may want to lookup some of the real estate law language provided by some board of realtors.

It sounds like your only real option is to terminate. Will they not even sign one of those “buyer has not lived in the property and has no knowledge of anything” versions?

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  • Dave SpoonerPro Member
    Rental Property Investor · Cincinnati, OH · Member since 2020 · 869 posts · 823 votes
    5y

    @David Young As far as I understand it, this is not legal in Ohio, or, at the very least, the seller can be held liable for any damages that result from an undisclosed defect. Lawsuits are never fun though, even if you know you're going to win. I would definitely make sure the seller's agent is aware that you know you could sue.

    If this isn't a great price, I might consider avoiding this seller...

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  • Ronald Allen Barney
    Real Estate Agent · Tampa, FL · Member since 2020 · 411 posts · 373 votes
    5y

    In my state the form itself is not required by law, but it is required by law to disclose "in some way", any major defect that may not be easily visible to the buyer.  In fact for those the seller's agent will be even more liable than the seller himself so if I were that seller's agent I would push really hard to slide a disclosure form across the closing desk.

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  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    @David Young

    In my real estate agent classes, we were told if the seller does not provide an RPD prior to close the buyer has the right to terminate. There’s nuances to it and you may want to lookup some of the real estate law language provided by some board of realtors.

    It sounds like your only real option is to terminate. Will they not even sign one of those “buyer has not lived in the property and has no knowledge of anything” versions?

    [email protected]614-363-2787
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  • Brandon GoldsmithBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 1k+ posts · 1k+ votes
    5y

    You have the option to terminate without any consequences from my understanding but would recommend you to double-check with legal counsel first. Is there a reason the seller won't provide it? It is a pretty easy document to fill out and most of the time everything says no anyways. @David Young

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  • David Young
    OP
    Investor · Lima, OH · Member since 2019 · 8 posts · 3 votes
    5y

    We have a review of the RPD as one of the contingencies in our offer, so we could terminate if they refuse to provide it. If they are adamant about not providing one, even if it they will lose the sale, then I don't think I want to move forward. 

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  • David M.
    Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    5y

    @David Young

    I guess that kinda sucks...  If this was NJ, the seller doesn't have to provide a SD since they hadn't lived there.  Happens all the time with absentee landlords, estate sales, etc.  Its buyer beware over here so the bottom line its the buyer's due diligence.  I don't see a problem, but then again I'm used to different system.  Good luck.

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  • Bob CollettPro Member
    Property Manager · Brecksville, OH · Member since 2014 · 486 posts · 464 votes
    5y

    @David Young... Wow!  The residential property disclosure is required by law for all real estate transactions in Ohio... with a few exceptions (attorneys handling an estate sale is really the only exemption, aside from sheriff sales and foreclosures).  I might even guess that the listing "agent" is not even licensed.  If he goes around refusing to give RPDF... he will probably not be licensed for long.  When the Broker gets audited... the entire Brokerage could go down for this type of violation. 

    There must be more to the story.  

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  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    5y
    Originally posted by @David Young:

    I am looking at buying a package of 3 houses from a seller who is selling off his rental portfolio of 70+ Single family homes. They were all listed individually on the MLS, so I packaged 3 of them together to get a good price. Once we had an accepted offer, we requested residential disclosures forms, and the seller's agent informed us that the seller is not providing residential disclosures for these properties. Does anyone have recommendations on what to do when a seller refuses to provide a residential disclosure?

     Ive bought properties without RPD's, typically the seller just doesn't want to fill out the forms, lazy, or some other issue. If its a good deal it doesn't really matter.

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    5y

    Who cares? I never read them anyways. You shouldnt trust a word in them to begin with. 

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