Disclosures About Angry Neighbors
Every sale transaction requires the seller to disclose what they know in the way of material defects and red flags. There are reasons why the Seller’s Transfer Disclosure Statement asks the questions it does. Even sellers who are exempt from certain disclosure documents have to tell what they know.
One question that leaves much to subjective consideration is the one about “Neighborhood noises and nuisances.”
Most would agree a neighborhood nuisance is the relentless fireworks from the neighbor next door. Another would be a band that practices till midnight on the cul-de-sac next to you. Another would be barking dogs, a motorcycle starting up and revving at 4:30 am from an early riser, and a known registered sex offender in the immediate area.
A disclosure that carries a different weight is an angry neighbor. In today’s world, that neighbor could become a serious threat. It used to be neighbors would try and work out problems. Today’s environment of guns, threatening talk, bullying, and social media threats, makes conversations more difficult.
It’s also possible that disclosure would be enough to discourage a buyer from purchasing that home. This is why disclosures must be delivered to buyers within 7 days of acceptance. This time frame is in advance of spending $600 for an appraisal and maybe the home inspection at a cost of $500 or more.
Every sale transaction requires the seller
to disclose what they know in the way of
material defects and red flags.
If a buyer receives the agent’s and the seller’s disclosures after the time frame for inspections have expired, the buyer is entitled to an additional three days for the inspection contingency. If it arrives very late, it could compromise a closing.
For each transaction, residential real estate agents must consider marketing, scheduling open houses and showings, addressing local laws, and numerous other concerns including uncooperative neighbors. This is not about the neighbor with a messy lawn or whose house could use a coat of paint. We’re talking about the in-your-face, aggressive, and spiteful types who seem to come out of nowhere and cause trouble, even to real estate agents.
The good news is most people are not inclined to be unpleasant without reason. Far more common is the neighbor who feels threatened by change and may believe they have something to lose by the neighborhood changing.
Neighborly concerns often focus on property values and the impact of changes within the neighborhood. Some neighbors might worry about the potential for shifts in the community dynamic and how these could influence local property values. This concern is sometimes heightened in areas where corporations own numerous properties for rental purposes, as a high turnover of renters might lead to perceptions of instability.
I once interviewed a homeowner in Ojai who told me I could not park in front of his neighbor’s house on the opposite side of the street. He insisted I move my car away from the neighbor’s house. When I asked for details, he explained the hostility and threats from him over the years against their landscaping, pets, and cars. They stated they were afraid of him.
There is a sensible and legal reason for disclosures.
If there is an undisclosed neighborhood nuisance, the
neighbors will make sure the buyers know
about it after closing.
As gently as I could, I explained his duty to disclose this behavior as a neighborhood nuisance and a red flag that could affect the value and desirability of the property.
He refused to disclose it and chose not to do business with me. In reality, even if he insisted on not disclosing it, I would have to note it on my Agent’s Inspection as a material fact provided by the owner.
However, today’s anger landscape has changed, and adjusting one’s behavior has become common and necessary. My hope is still that calm and reason can overcome tense situations. The daily newspapers are filled with examples of when they do not always work.
There is a sensible and legal reason for disclosures. If there is an undisclosed neighborhood nuisance, the neighbors will make sure the buyers know about it after closing.
Kay Wilson-Bolton is a real estate broker and property manager with Century 21 Real Estate Alliance. She can be reached at 85.340.5025
