Selling Flipped Properties: is our liability post sale increased due to undisclosed defects?
714We are all too familiar with the flipping craze going on in Houston. Motivated by the targeted 20% profit promise promoted by the "flipper schools" these investors learn that's a hard number to hit...and the quality of their work often questionable. Should we have a new line on the Sellers Disclosure regarding if this home was a "flip" and if so require additional documentation regarding to permitting etc. I fear upset buyers will be angry with Brokers and Agents will on these sales as problems creep up and the flippers are long gone post sale. Do we need a new line on the SD in regards to "flip" and permitting? What do you suggest.
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About 6 years ago
Disclosure will be one of your best friends. If you know it, mention it. Buyers agents can look up sales history and more importantly time of owner ship. I don't believe any additional lines are needed. If the home was completely renovated, it should be in the listing as a selling point. It will also notify potential buyers and agents that remodeling has been recently added and should be looked at. Inspections should be highly recommended and documentation signed in the event buyers decline inspection. As far as permitting lines, this is already included in the sellers disclosure, section 5 first question.
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