My Aunt Frieda

I am asked disclosure questions at least once a week, so let’s just review the basics in this post:

Va. Code § 54.1-2131(B) requires listing agents to disclose, in writing, to prospective buyers, material adverse facts pertaining to the physical condition of the property.  So, your disclosure calculus is always as follows:

1. Is it Physical Condition?  This is usually pretty easy.  Now includes physical condition of the land e.g. drainage, not just the improvements e.g. the house.
   
2. Is it Material? Would it cause a reasonable buyer to make a different decision with regards to the contract, price, etc.?  Recall a jury decides this.
   
3. Is it Adverse?  You really wouldn’t be worried if it was a good thing would you?
   
4. Is it a Fact? A fact is something that can be proven true or false.  Note that an opinion may be considered a statement of fact if the opinion suggests a fact exists.  This can be tricky, e.g. two termite letters.
   

So, I simply work through these for each and every disclosure question.  Remember they must be facts actually known by the agent, and you are only obligated to disclose to prospective buyers.  If all answers are yes, then disclose.

A simple mnemonic will help you remember 1 through 4: Please Call My Aunt Frieda. 

But please call your Auntie Supervising Broker if you are unsure.