It is vitally important to have pertinent information when considering to make an offer on residential property owned by an investor or iBuyer in Las Vegas. One important document is the Seller’s Real Property Disclosure (SRPD). Nevada law requires that sellers of residential property disclose any and all known conditions and aspects of the property which materially affect the value or use of residential property in an adverse manner (see NRS 113.130 and 113.140.) The Seller’s Real Property Disclosure informs a buyer about any problems with the property that the seller knows about. But did you know that asking for two SRPDs in Nevada can be a useful strategy when purchasing a home from an investor or iBuyer? Here are some reasons why:
Compare: If you ask for two SRPDs, you can compare them to see if they are the same. If they are different, it could mean the seller isn’t being completely truthful about the property’s problems.
Protect: Asking for two SRPDs can also help you if there is a legal problem later. Two SRPDs are helpful when the seller you are purchasing from acquired the property usually less than a year before he/she contracted to sell the property for profit to you as the buyer. Unfortunately, many flip investors are solely profit driven! Under the Structure heading of the SRPD the first question reads: Previous or current moisture conditions and/or water damage? Now imagine the previous seller checked “yes” in response to this question on their SRPD and you as the current buyer would never know! The seller of your purchase transaction releases their completed SRPD to you and he responds “no” to the same question. You as the buyer have no way of knowing if or how the current seller addressed the purported water issue. Here are some scenarios of what may or may not have transpired in the first transaction which you as the current buyer were not privy to; a) was the issue resolved before close of escrow as a repair with receipts from a licensed contractor, or b) was a concession negotiated between the parties in favor of the buyer in lieu of repairs, or c) did the current seller accept the issue when he purchased the property in an “as is” condition knowing his intention was to flip the property for profit after he became the owner of the property?
You can use the two SRPDs as proof that the seller knew about a problem but failed to disclose any adverse matters about the condition of the property to you.
Negotiate: Having two SRPDs can give you more power when you are negotiating. If there are differences between the two, you might be able to get a lower price or ask the seller to fix a problem before you buy.
Pro Tips: First ask your licensed Nevada real estate professional to run the sold history for any property you are interested in making an offer on. Request that the seller provide a copy of the SRPD from the previous transaction if the chain of title reveals that the property was sold to an investor or iBuyer within the last two years from the date you are making an offer to buy a residential property.
Second Pro Tip: Have your real estate agent check “other” under the Disclosures section of the Residential Purchase Agreement when writing the offer. In the other field your agent can add specific language that requests the SRPD from the previous sale!
Feel good: So if you’re looking for to buy a home in Las Vegas, be sure to ask for two SRPDs if the last sale date was within the last two years. It can give you peace of mind and help you make a good decision.
If you have questions about purchasing a property in Las Vegas or Henderson, Nevada contact Teresa today!