1. P R E S E N T S
Minimize Your RiskMinimize Your Risk
Maximize Your EarningsMaximize Your Earnings
Understanding and Recognizing
the Top 10 Property Conditions
that most often lead to disputes in the
Real Estate transaction
*According to the NAR Legal Scan/Legal Pulse
3. FACT:
59% of New Buyers rely upon their Agent to point out
unnoticed features/faults with the property
53% of Repeat Buyers rely upon their Agent to point
out unnoticed features/faults with the property
(This ranks as #2 benefit)
#1 benefit is to help buyer understand the process
Source: 2016 NAR Profile of Buyers and Sellers
4. FACT:
92% of homes sold in the
Northeast used an Agent or
Broker (+2% from 2015)
YOU ROCK!!
Source: NAR Profile of Buyers and Sellers
5. Help buyer understand the process 80% 51%
Point out unnoticed features/faults with property 59% 53%
Negotiate better sales contract terms 49% 46%
Provide a better list of service providers (e.g. home
inspector)
39% 38%
Negotiate a better price 39% 35%
Top 5 benefits your buyer
clients want
New Previous
Buyer Buyer
6. FACT:FACT:
80% of claims against brokers
E&O insurance are due to
property related conditions
Effective disclosure helps you earn more
and keep more commissions
7. What is the
NAR Legal Scan and Legal Pulse?
Legal Scan Published every two years by
National Association of Realtors
Legal Scan discontinued in 2013
Replaced with Legal Pulse
8. What is the
NAR Legal Pulse?
Quarterly newsletter - analyzes current legal trends
in risk management that impact real estate
professionals (nationally)
Tracks cases and statutes
Identifies emerging issues and trends
www.realtor.org
11. Caveat Emptor
The doctrine of “Buyer Beware” is gone….
Replaced by Agent Beware!Replaced by Agent Beware!
Realtors are held to a higher standard
“What do you know about the property” has been
replaced by “What should you know about the
property!”
12. Today’s AgendaToday’s Agenda
• Help you develop an awareness of what to
look for (without turning you into home inspectors)
• Highlight warning signs of possible defects
• Overview of Top 10 Property Conditions that
most often result in disputes
• Common sense rules of disclosure
13. Why is this information important?
Happy, well informed clients, mean more
referrals (and no disputes)
More referrals = more earnings
Minimize your risk by having a greater
awareness and understanding of adverse
conditions
20. Warning Signs of Water Intrusion
Poor grading
Inadequate ventilation
in crawlspace or attic
Cracks in foundation
Efflorescence
Roof stains in attic
Missing roof shingles
Stains on ceilings
Newly painted
foundation/floors
Water stains
baseboard/furniture
legs
Mold
Sump pump
Downspout not
extended
Window rot
27. Warning Signs of Structural Issues
Sloping or sagging
floors
Overly snug fit to floors
and windows
Cracked tile floor
Excessive concrete
cracking and
separation
Alterations without
permits
Sagging beams
Funky
supports/columns
Stair riser/tread size
Crushed sills/joists
Suspicious homeowner
repairs
40. Warning Signs of Plumbing Issues
Loose and missing
grout and tiles
Loose toilet
Safety glass at tub or
shower enclosures
Water odors (sulfate)
Aged piping
Leaking drain traps
Reduced water pressure
45. Warning Signs of Roof Issues
Age of Roof
Rusted Flashing
Missing, cupped or curled shingles
Stained ceilings
Cracked or missing tiles
Buckets in the attic
47. Warning Signs of Environmental Issues
Radon – lack of disclosure, mitigation system not
functioning
Asbestos – wrapped pipes, loose insulation,
vermiculite, aged floor, 6 x 6 ceiling tile
Lead – 1978 or before
UST – cut off fuel lines, new gas, evidence of prior
oil tank, propane
52. Warning Signs – Electrical Issues
Outdated Service size
Panel issues
Exposed romex
Open junction boxes
Extensive use of electrical cords
Aluminum wiring
(primarily used from 1965 – 1974)
53. Best Practices…
Make sure your client understands his/her obligations
under the contract
Explain that he/she has a right to bring in specialists to
investigate the condition of the property
Do not give advice beyond your area of expertise
Point out potential trouble spots and recommend a
Home Inspection
Review Seller’s disclosure and ask for more
information if necessary
Document everything in writing
54. Minimize Your Risk
Make sure the Inspection Companies that
you recommend have:
Errors & Omissions Insurance
Fully licensed in CT/MA/NY
Strictly adhere to the Standard of Practice
Stand behind their inspections
Offer comprehensive inspection agreements
55. Tiger Group Office Seminars
PCD Perils & Pitfalls –
(Water/Septic/Sewer)
203K Financing – Buy it,
Fix it – all in one loan
Mold – Fact vs. Fiction
Law & Order HIU (Home
Inspection Unit)
Mock Inspection
Individual Training
Modules – Got Questions?
We’ve Got Answers!
This Old Connecticut
House
Minimize Your Risk –
Maximize Your Earnings
Top 10 Environmental
Issues
Survivor! Will The Deal Close, Or
Will You Be Voted Out Of The
Transaction?
I think we can all agree, we enjoy smooth transactions. Disputes are time consuming and tough. Whether they are resolved through conversation and negotiation or through complex and expensive litigation – it’s something we would all like to avoid. Today we’re going to discuss the top 10 property conditions that most often lead to disputes. In the more than 20 years that we’ve been doing home inspections, we’ve seen these conditions over and over again. Today we’d like to help you learn to identify and understand these conditions and develop an awareness of what to look for - so that you may better inform both your buyer and seller clients, and in turn, minimize your risk.
But, before we get into the meat and potatoes of our seminar, let’s first take a look at today’s buyers and sellers…
Understanding, and ultimately fulfilling, buyer/seller expectations is another way to minimize your risk. So let’s take a look at the most recent Profile of Buyers and Sellers from NAR…..
Northeast is Highest in the nation:
Through a real estate agent or broker (88% average); 92% northeast, 90%Midwest; 86% south; 89%west
Legal pulse summarizes national trends and discusses representative cases.
2015 no environmental cases, but other years did have radon, asbestos issues.
Other/misc - stigmatized property, megan’s law, electromagnetic field, valuation, etc
#71
#72
#75
#74
#67
#78
Washer hose
Water Pressure
Roof transition, missing flashing and damage; exposed flashing