My broker brought us an offer (after 9 months of listing, this is the only written offer we've got).
We are okay with the price although its still >20k less than what we listed.
In the offer, buyer put "seller warrants that they had no home insurance claim associated with this property during their possession".
The question here is, we did have a claim for temporary rental income loss because there was a flood caused by our neighbors upstairs, we were not at fault, and all repairs were covered by the strata (although for some reason, this is not recorded in the AGM minutes with details)
From our latest insurance policy, it shows "10 years or more claim-free".
In this scenario, what should we do? We know there's legal liability but at the same time we don't want to lose the offer.
Our broker asked us to think about how to respond, and said we should seek legal advice. We only have one more day before we sign back and it's holiday i don't think we can get any legal consultations arranged.
Should we disclose everything to the buyer? And show them our policy etc? I don't want to just rely on my agent for advice as they seem just care about making the deal happened even now we are selling a little below our purchased price from 7 yrs ago.
Potential buyer putting a clause in their offer, how to deal with it?
byu/et201202 inrealestateinvesting
Posted by et201202
3 Comments
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if i didn’t want to go to a lawyer i would just respond back with a contract for them to initial what you said just now as a disclosure.
You disclosed there was a claim but you were not at fault and it was repaired up to the insurance companies standards.
That’s what the disclosure section is for in any home i’ve sold or bought.
Disclose the insurance claim. Your buyer is mostly concerned with you having an insurance casualty event recently, fixing it as cheaply as possible (just enough to conceal it from them), and then pocketing the difference between what the policy paid and what it cost you to cover up. If everything was on the up-and-up, your buyer won’t walk.