New Jersey Real Estate Continuing Education - NEW JERSEY School Organization ID: P1000137
4.0 hours Disclosure Is Not A Secret Course Syllabus
4.0 Core Hours.
A material defect is something that physically affects the property. A stigma is something that psychologically impacts the property because an event has, or is suspected to have occurred on the property. Property can be stigmatized in a number of ways. The law says most of them need not be disclosed.
Certain items are not material, and the seller and/or real estate agent cannot be sued for failing to disclose any of these occurring on the property unless the buyer asks and if the buyer asks. In answer to a buyer's question, however, it must be disclosed.
What can a buyer's agent do for a person who will not purchase a house that someone has died in? Show the buyer-client only new houses! There is no way of really knowing whether a 50-year-old or 100-year-old house has been the scene of a death. But what if the seller tells a listing agent the house is haunted? Should the agent disclose? Tell the seller to put it in the disclosure.
This course reviews the various things both material and stigma defects that should be disclosed. Once an agent has knowledge of stigmatized properties, he is responsible for that knowledge and, if asked, the agent must answer truthfully. If the buyer is concerned about events on a specific property, the buyer's agent has a duty to find out answers for that buyer.