The more information the seller discloses (material facts) about the subject property, the less likely he will be sued after the close of escrow. What are material facts? A material fact is anything that may affect a buyer’s judgment or decision to go through or to not go through with a transaction.

For example, if your property had water damage in the past, even though there isn’t water damage now, you should disclose this material fact. Failure to do so may result in “negative fraud.” Negative fraud is not saying something that you should have said; by not saying what you should have said, you‟ve been fraudulent. That is, you‟ve lied.

When in doubt, disclose, disclose, disclose!



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