Defects, Disclosures, and a Buyer’s Dilemma
In the aftermath of the rise, fall, and rise again of COVID-19, the real estate market has remained prolific for sellers. The low inventory of houses sends the market into overdrive with houses selling quickly and high above market price. Generally, people hire realtors to facilitate the transaction and find their perfect home which can be a lengthy process. The Covid-19 seller’s market fast tracked this process, leaving buyers at the mercy of their realtors. For some, this means buyers can only view properties through video chatting, photos, and communication with the realtor before purchasing a house. With potential buyers unable to view the properties in person and realtors juggling an expedited market, mistakes are bound to happen. A buyer should be concerned that the realtor could misrepresent the property in hopes of quickly closing the deal.
The Oklahoma Real Estate License Code
When buying a home, a buyer wants to ensure that their realtor will help make a sound investment. Even though the current housing market puts a strain on realtors, they still must abide by the Oklahoma Real Estate License Code (ORELC) and comply with the Residential Property Condition Disclosure Act. These laws provide instructions and limitations for realtors. When a realtor acts improperly or does not comply with the ORELC or the Real Property Condition Disclosure Act, the buyer could unknowingly purchase a house or property that does not match the listing.
Under the ORELC, a real estate licensee must treat all parties with honesty. If found in violation of the ORELC, the realtor can have her licensure revoked. To prove a violation of the ORELC, a buyer must prove that the realtor made “substantial misrepresentations” or “false promises.” O.S. 2001 § 858-312(2). Additionally, the Residential Property Condition Disclosure Act states that if a realtor fails to disclose a defect of the property, buyers can file a lawsuit “where misinformation is communicated in the sale of residential property.” Lopez v. Rollins, 2013 OK CIV APP 43. These two laws work together to protect buyers from realtors that might misrepresent information when facilitating a purchase.
Caveat Emptor
A common but mistaken thought is that caveat emptor, or “buyer beware”, applies when purchasing a home. While it is true that the buyer should make informed decisions, the Oklahoma Supreme Court stated that sellers can be held liable when the property has certain types of structural defects. Roger v. Meiser, 2003 OK 6. When there is a defect of the home, the seller must supply the buyer with a disclosure statement including information about the condition of the property. If the written disclosure statement is not delivered to the buyer, then the seller is in violation of the Residential Property Condition Disclosure Act. A prudent realtor will ensure that the seller provides the buyer with the disclosure statement, otherwise the realtor could be in violation of the ORELC. When these situations occur, a buyer can receive damages as compensation.
In the flurry of the housing market, buyers must be diligent in choosing a realtor that remains in steady communication with the seller. If you have purchased or sold a home recently and find that there are discrepancies in the transaction, Plainview Legal Group has experience in litigation with real estate agents, brokers, and sellers. Let us help you get to the heart of the matter. Call us at 405-310-0183.