Wednesday, June 29, 2011

Karen Guy, REALTOR® ~ Buying a Home with no property disclosure statement filled out

I recently worked with a client to make a purchase on a home that had no Property Disclosure Statement (PDS) filled out.  The "owner" of the property was the Executor for the Estate.  In this case when a client has not lived in a home and therefore cannot speak to any of the questions posed on the PDS - the property disclosure statement becomes mute.  Lines are drawn through all the questions and it is noted on the last page of the PDS that "due to the client not living in the property they cannot legally to answer any of the questions".  Then, the client signs the PDS attesting to this.

This can be common in a lot of cases where the house was bought strictly for rental purposes and the owner has not lived there, or in the case of a death and where an executor or executrix has been appointed.

As we were getting down to the final days where we were to remove the financing subject on the property the insurer for the mortgage ordered an appraisal on the property.  In this case, as my mortage specialist pointed out,  the appraisal was ordered strictly due to the fact that the PDS could not be relied upon to answer any of the basic questions about the property.  High ratio mortgages do not usually require an appraisal.

So, just a tip that when working on an offer for a property where no disclosure statement is signed, leave yourself enough time with your subject to financing dates to allow an appraiser (should one be ordered).

Yesterday we were a bit anxious waiting for the appraisal report to hit the system as our subjects were due off yesterday.  So, at 5:00 at long last we finally got the word that all was good!  Failing that, it ws going to be a drive out to Penticton (that's where my client lives) to get signatures on an amendment and a new subject removal.

For more information about this, or any other questions you have about real estate, please call me! or send me an email.

I'm off to another education course today, have a good one!

I am the GUY that will make a difference!

I specialize in selling homes in the in the Okanagan Valley including Westbank, West Kelowna, Peachland with a focus on Rose Valley, Lakeview Heights, West Kelowna Estates and Shannon Lake.

Karen Guy, REALTOR®
Coldwell Banker Horizon Realty
C 250.878.3605 O 250.768.8001

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Kelowna Real Estate Agent West Kelowna Karen Guy Realtor