How to protect yourself when buying a property
When purchasing a home in Arizona, there are several steps a buyer can take to protect themselves. A buyer has a 10 day inspection period to determine the condition of the home. During the buyers due diligence period, it is their responsibility to hire an inspector and any other vendors that they desire to perform whatever is necessary to make a buyer have peace of mind about the home. Some buyers only hire a general inspector. Some buyers hire a roofer, AC technician, plumber, etc. to make sure the home is up to their standards.
A seller is required to property the Seller Property Disclosure Statements (SPDS) to the buyer once the home is under contract. In addition to the SPDS, the seller is also required to provide an insurance claims history for the previous 5 years they have owned the home. By law, the seller should disclose any material facts about that property. In my opinion, this can be somewhat of a gray area. An educated listing agent should require the seller to disclose everything they know about the home when they are filling out the SPDS.
If the seller does not disclose a material fact and the buyer later finds out about this, what action can they take to prove the seller knows about that problem but did not disclose?
What evidence can the buyer provide to prove that the seller lied or covered up a material fact?
This is a gray area in my opinion and if you are ever in this situation where you feel the seller has lied or has not disclosed any material fact, consult an attorney to discuss your legal options.
As an experienced agent working with hundreds of buyers and sellers over the last decade, I would encourage all buyers to do their homework during the inspection period. You may never fully be able to see every inch of a home, but do what makes you feel comfortable before proceeding with the sale of the home! As a buyer, ask your agent questions! There are no dumb questions when buying a home and your real estate agent’s job is to educate you to the best of their knowledge!
Make sure you do everything you can to be informed before buying a home. Following some of these steps and doing your due diligence as a buyer will help protect you from buying a money pit.