Question and Answer Regarding Trustees’ Disclosure

Question:        I am a listing agent for the sellers, who are trustees of a trust, which owns the property.  The trustees are children and selling their mother’s house, as their mother previously passed away.  The children are aware of prior water leakage at the house.  Do they have to disclose that fact?

Answer:          The children are not required to complete a Transfer Disclosure Statement, but they are required to disclose all material facts of which they are aware affecting the value or desirability of the property.  It is recommended that they complete a California Association of Realtor’s Exempt Seller Disclosure (“ESD”) form.  They should attach an addendum to that form and identify all material facts of which they are aware, including the prior water intrusion.

Shannon B. Jones, Partner sbj@sbj-law.com