Caveat Emptor: Let The Buyer Beware

Let the buyer beware. The full Latin statement is here:

Caveat emptor, quia ignorare non debuit quod jus alienum emit 

"Let a purchaser beware, for he ought not to be ignorant of the nature of the property which he is buying from another party.”

We’ve been selling real estate during an interesting time, these past two years. Some areas of the country have continued to use home inspection contingencies, but in Lancaster County, they’ve all but disappeared to allow buyers to be competitive when making an offer to purchase a home. As evidence of this change, several home inspectors have left the business for lack of work.

Buyer beware. In the sale of a home, the seller knows much more about the condition of the home than the buyer. The seller has a duty to disclose any known material defects in the Seller’s Property Disclosure Statement. In the past, the buyer relied on the Disclosure and a number of possible inspections to gain an understanding of the condition of the property before fully committing to the purchase. Without the inspections, buyers are relying only on the Disclosure to understand if there is a history of issues they are going to inherit.

So what happens when an issue comes to light after settlement? Buyer beware. It is a common knee-jerk reaction for new homeowners to feel like the seller duped them when something in their home goes wrong after settlement. As a seasoned Realtor, I know that things go wrong in homes all the time and that often when it occurs after a settlement it really is purely a coincidence and not a matter of the seller not disclosing a defect. Of course, sometimes it is a known and undisclosed defect.  

This is not an article to offer legal advice. More of a reality check for what’s going on in today’s real estate market and in the homes of our clients, after the sale. If the well pump fails 3 days after settlement, whose problem is that? If the roof leaks 2 months after settlement, could the seller be responsible for a new roof? If mold is found in the attic 6 months after settlement, did the seller know? I think it is safe to say the answer is - it depends. Leave that to the legal experts.

If your buyer closed on a sale 6 months ago without getting a home inspections and then a cast iron waste line cracked, leaked and damaged their finished basement, they may want to blame the seller. However, they’ve lived in the house for 6 months at this point. They had both opportunity to fully explore their new home and opportunity to do their own damage.  

This is all pointing to the benefit of ordering a home inspection after settlement. Not six months after settlement when they are fuming because they feel the seller didn’t disclose something. It should be scheduled for the day after settlement. This way they have a snapshot of the condition of the home at the time they are taking ownership, before their own wear and tear. This can give them a heads up of issues on the horizon to allow them the opportunity to prevent unpleasant surprises, like a leaking roof or a wet basement.

Having an inspection completed right after settlement is an alternative to having it done as a condition of the sale, with the important distinction that they can’t cancel the sale after settlement. This really does sum of today’s market: Buyer beware.

Facts, opinions and information expressed in the Blog represent the work of the author and are believed to be accurate, but are not guaranteed. The Lancaster County Association of Realtors is not liable for any potential errors, omissions or outdated information. If errors are noted within a post, please notify the Association. Posts represent the author's opinion and are not necessarily the opinion of the Association.