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Old 05-21-2008, 10:56 AM   #44
onetwo_threefour
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Quote:
Originally Posted by Cowboy89 View Post
Could one argue that since such events can effect the value of the home for the buyer when they choose to re-sell the property that this would fall under fiduciary duties of the realtor?

I would suggest no. First off, the fiduciary relationship of the Realtor only exists between the Realtor and his own client, other than that, the ethical standards of the real estate profession vis-a-vis dealings with the general public are the relevant consideration, (provided that same are consistent with settled law and legislation)

Secondly, if you're going to impose duties like that on Realtors, they'll be getting sued left right and center by either their own clients for disclosing something that wouldn't necessarily be a stigma, or by buyers for not disclosing something that was a stigma for that particular buyer, but wouldn't be for the average person.

I like the solution the way it is now. Put the onus on the buyer to ask about any unusual circumstances. If it's important to them they should be asking the question. The Seller should have the obligation to answer such questions honestly, but not to volunteer laundry lists of possible stigmas to give a buyer ammunition in negotiations.

(It's somewhat similar to the Property Disclosure Schedules that were being used for a while, it kind of pits the Realtors against their own client in the name of protecting themselves, and deprioritizes the fiduciary responsibility for the sake of Realtor CYA.
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Last edited by onetwo_threefour; 05-21-2008 at 10:59 AM.
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