You should be aware of this VERY IMPORTANT issue, since it could save you thousands of dollars and headache later on. That`s why I strongly suggest to always hire good realtors and home inspectors.
Example of a true story from last year:
Family X sold a house in good faith following all the guidance, instructions of the Real Estate Broker. After 3 months on the market and too many visits, they decided to reduce the price of the house by 25 000$ due to the feedback of the visitors (Asking price too high: basement needed to be renovated).
Couple of days after the price was changed, there was already a buyer making an offer. Everything went smooth EXCEPT of two major mistakes.
First: The Real Estate Broker didn`t mention in the documents that the price was reduced due to the work needed in the basement;
Second: the buyer hired a “discount inspector“.
One week after the new home owners moved to the house they discovered that one of the basement wall wasn`t isolated which lead to mould, therefor a LATENT DEFECT!
Facts: by all means any responsible inspector couldn’t miss such a big factor, especially when it was very accessible to carry on the verification.
Conclusion: Due to the omission from the realtor part, aggravated by an amateur inspector(or maybe working together with the buyers and abusing a questionable law in regards to LATENT DEFFECTS), 1 year later full of stress and 8 000$ shorter the seller finally put a closer on this case.
None the less, Buyers got a new, upgraded basement (which increase the value of the house) for less than half price (with the seller money)!
Catalin Ivan – Real Estate Broker