This article in Realty Times by Bob Hunt raises a very interesting question and the ruling from the California’s 4th Appellate Court, is certainly a concern for Brokers across the nation that are engaging in short sales. The disclosure process to a Buyer in a short sale may take on a different twist……please read this very interesting case law that might come to your State.
Suppose you had a listing and that, because of some fact about either the seller(s) or the property, you believed that any transaction would stand a greater than normal chance of failing to close. (Yes, I've had one of those too.) Would you have a duty to disclose those circumstances to a prospective buyer even before they entered into contract? Apparently, "yes”…..go here to read entire story: Realty Times - Short Sale Disclosure Ruling Raises Other Questions
