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REO Listings and Property Disclosures

When considering putting an offer on a Tampa bank owned home  you may run into these statements by REO listing agents “this is a bank owned property and bank is exempt from filling out property disclosures” While there is no law that a sellers property disclosure needs to be filled out. If the bank(seller) or real estate agent know of any defects that may affect the value of the property these facts need to be disclosed period.  I have said this time and time before you even see these statements on non occupied owned homes as well; just because a seller has never lived in the property does not mean they have no knowledge of the condition of the property. It seems ridiculous to me that anyone who owns a home including bank owned homes have no knowledge of the condition of the property. These are just ways sellers or listing agents trying to circumvent property disclosures and it opens them up to lawsuits down the road.

Here is another thing to consider how many bank owned homes come back on the market due to inspection issues? Now the listing agent is aware of defects that were just reported to them. Is that agent now still saying the owner has no knowledge of the condition of the property?

So work with your buyer’s agent to make sure the REO listing agent is disclosing material facts about the property and you have in writing there is no knowledge of latent defects. There are many lawsuits now popping up with bank owned properties and lack of disclosure. You still of course want to have a professional home inspection before purchasing any home.

Here is a great article on Active Rain about REO listings and disclosures

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