Real Estate Q&A

Issue #019

02 Nov

In this Knoxville Insider Issue…

🌤️ Real Estate Edition - Real Estate Q&A
 

Real Estate Q&A

I've received some fantastic questions lately, and I've decided to share my answers with all of you! Check them out below, and feel free to reach out if you have any additional questions!

Q1) What is the procedure to look at a house ? I am so confused. Do I have to sign a contract to look at a house? I may look at 20 houses so do I sign 20 agreements ?

If you’re working with the same realtor, you should not need to sign multiple agreements to view houses. In Tennessee, you have two options:

  • You can sign a showing agreement, which applies either to a specific home or a set time period (usually no longer than a weekend). Showing agreements are typically issued by the brokerage and generally do not outline the specific roles of each party.

  • You can sign an Exclusive Buyer Representation Agreement, stating you’ll work exclusively with this realtor for a specified period (usually about six months). This is a state-provided/attorney reviewed form that outlines the roles and responsibilities of all parties in the agreement. It also designates agency and identifies your specific representative within the brokerage.

Q2) When a buyer pays for an inspection and it comes back with a few issues, can the seller get a copy of that report? I was told that you don’t want to open yourself up to that and you would have to disclose any issues when selling the house if that sale doesn’t go through?

  • The inspection report belongs to the buyer since they paid for it. If issues come up in the report and the buyer decides to negotiate repairs or a price adjustment with the seller, the buyer may choose to share parts of the report or summarize the key issues. If a seller or their agent reviews an inspection report, they should disclose any issues identified. For this reason, it’s usually best for the seller to avoid reviewing the report directly to minimize potential liability. I would encourage any seller to consider a pre-listing inspection instead, which helps them proactively understand and address any issues in their home before listing. This way, the seller can be confident about their property’s condition and avoid surprises later in the transaction process.

Q3) Do I have legal recourse against a home owner who fraudulently misrepresented square footage of home I bought for cash last November? The listing was 3212 but the actual home is close to 2400. I always thought the home seemed small and confirmed it when a different realtor checked the tax records. The home owner provided the square footage that was 800 sf larger than what they paid for the home.

  • Even when paying cash, I would always recommend having an appraiser at least measure the home, as this type of issue would have been found. You would also need to verify the tax information and review the MLS listing that the previous agent and seller provided. As a buyer, you and your agent are responsible for ensuring you did your due diligence as well. Yes, you may have legal recourse against the homeowner for fraudulently misrepresenting the square footage of the home. Misrepresentation in real estate transactions can lead to legal action if you can prove that the seller knowingly provided false information with the intent to deceive you, and that you relied on this information in making your purchase.

Ask a Realtor/Broker😀 

Got questions about buying or selling? Feel free to reach out! Whether you’re curious about how to get started or want advice on maximizing your home’s value, I’m here to help with all your real estate needs.

The Real Estate Edition Issue brought to you by Barbara Newton. She can be reached at [email protected]

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