Holmes v. Summer. The Listing Agent’s doom.
In October of 2010 the California Court of Appeal came out with a ruling that says the Listing Agent is liable to a non-client buyer (read that carefully!) For failure to disclose material facts effecting value or desirability of a residential property.
Now, how the hell will a Listing Agent know what a non-client Buyer thinks is “material” or will effect value or desirability? Will you have the Buyer’s Agent set up a meeting so you can take the Buyer out to dinner and discuss it?
I didn’t think so.
But, the Listing Agent still has liability. (WHAT was the Court thinking?!) So, what to do?
Use the BMI. Treat it as your BFF.
Don’t know what a BFF is? Ask your teenager.
Don’t know what a BMI is? Look at WinForms. It’s been a C.A.R. Form for, what, 10 years.
It’s a “Buyer’s Material Issues” form.
Require the Buyer to fill it out at the time they remove contingencies. That way, if he Buyer doesn’t say something, I can use it in defending the Agents. After all, how are you supposed to know, if the Buyer didn’t tell you?