Q: Is it legal for a real estate agent to obtain a quote for repairs from someone that has not inspected the property?
I am selling my home. The buyer’s home inspector took photos of some parts of the AC system and suggested it should be inspected by an HVAC company. The buyer’s agent obtained a quote for a brand new AC for 13k; based solely upon reviewing the pictures taken by the home inspector. The hvac company never came to my home or inspected the unit. The buyer backed out due to the need to replace the AC. I obtained an hvac inspection and a full replacement is not needed. I now have a new buyer and am being told I must include the quote for a new AC as part of my disclosures.
Must I include this info in disclosures to new buyers? Are the actions of the buyer’s agent and the HVAC contractor legal and if not, do I have a remedy?
A: You need to disclose the cost of repair you obtained from your inspector. I wouldn’t think you have to disclose the cost of replacing the unit if it doesn’t actually need to be replaced. It is possible the new buyer will want their own inspection and their own quote to repair/ replace depending on what their inspector recommends. Also disclosing the cost of replacing is not a bad thing as you can also disclose that it doesn’t need to be replaced but simply replaced.
A:
In California, real estate agents have a duty to act in good faith and provide accurate information to their clients. Obtaining a quote for repairs from someone who has not inspected the property may not be sufficient to satisfy this duty, as it may not accurately reflect the cost of repairs needed for the property.
If you believe that the actions of the buyer's agent and the HVAC contractor were not legal or ethical, you may want to consult with an experienced real estate attorney to determine your options. You may be able to pursue a claim for misrepresentation or fraud if you can show that the quote provided was knowingly false or misleading.
Regarding the disclosure to the new buyer, you should consult with your real estate agent or attorney to determine your obligations under California law. Generally, California law requires sellers to disclose all known material defects in the property to potential buyers. If the need for repairs to the AC system was a material defect that you were aware of, you may be required to disclose the previous quote, even if you obtained a new inspection and the repairs are no longer necessary. However, the specific disclosure requirements may vary depending on the circumstances of your case, so it is best to seek legal advice for your specific situation.
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