Sellers listing their high-end real estate holdings often go all out to optimize the sale price of their homes. In addition to working with the real estate agent to market the property, they may work with professionals to stage the home.
Home staging may involve cleaning, renovating and decorating the property to make it as appealing as possible to potential buyers. The staging process often requires the removal of excessive personal items, such as family pictures and collections, that clutter the home. Professionals try to make the space as inviting yet neutral as possible. They try to help buyers see themselves living in the home and draw attention to the best amenities of the property.
In some cases, the way that sellers display a home could interfere with the buyer’s inspection process. Staging could make it harder to spot property defects. Are buyers on the hook for repair costs when sellers hide damage to their property?
Sellers have disclosure obligations
Buyers purchasing real property have a right to receive accurate information about the condition of the property. Disclosure rules require that sellers notify buyers in writing about any significant property defects, ranging from foundation issues to problems with outdated electrical wiring.
Sellers cannot simply hide defects or list the property in as-is condition to avoid those obligations. In cases where sellers, their agents or the staging professionals they hire make cosmetic improvements or arrange the furniture in the property to hide known defects, the buyer may have the right to take legal action.
However, it is almost always better to identify issues before the closing rather than to pursue estate litigation after buying a home. While those buying on the high-end market may not require a mortgage and are therefore not subject to standard appraisal and inspection requirements imposed by lenders, they may still want to have an inspection performed.
Inspectors have training on how to identify common defects, even when there have been efforts to hide those defects. Additionally, professional inspectors typically carry insurance that can protect their clients in scenarios where they overlook obvious issues with the property and provide an inaccurate final inspection report.
Buyers shouldn’t have to worry about acquiring a property with intentionally hidden defects. If they do, they have legal rights. Working with an attorney throughout the purchase process can make it easier for real estate buyers to understand their rights and protect themselves accordingly.