Let the buyer beware

Times Reporter 

 

When the Strauss family purchased their new home in 2011, they never expected it to turn into their worst nightmare. Despite assurances from their real estate agent, it was only after discovering problems and trying to correct them that the couple found out the new home warranty didn’t cover the addition to the home.   

The Real Estate Council of Alberta (RECA) has strict guidelines when it comes to their agents helping people buy or sell their homes. The agents are required to disclose problems to the buyer, provided they know about it themselves. 

“While the common law provides for a requirement for sellers to disclose major hidden defects (material latent defects), they are under no obligation to disclose anything that is discoverable on a reasonable inspection of the property,” said Charles Stevenson director of professional standards for RECA. 

Stevenson said if anyone asks if there are broken window panes or if shingles are crooked, for example, then those are things that could be reasonably discovered in an inspection and there is no requirement to disclose. But there is a requirement for honesty in how the question is answered.

The real estate professional should have a conversation with the buyer about all the things they will come across while buying. For instance, the seller is only obliged to disclose material latent defects, and so the buyer and their agent should go discover the rest.

One way that’s done is to get a home inspection, even if warranties are suspected to be in place. In the case of the Strauss family, the seller may not have known about any material latent defects because he had not lived in the home previous to selling it. 

“When a real estate professional is aware of a (material latent) defect they must disclose it,” said Stevenson. 

He said one of the fundamental legal concepts when home buying is caveat emptor, Latin for “let the buyer beware.” 

While most times, buying a new home will not result in problems, and the building is covered under warranty, it is always good practice to have a home inspection done, to see if any obvious defects can be found.