A lesson in why buyers must hire inspectors — and sellers should demand that, too

Last month I hired a real estate attorney. My contractor found water stains 4 inches off the ground behind a wall. Mildew was also present. My contractor verified that my condo had flooding throughout.

I’m filing claims against the seller, the seller’s listing agent and the realty brokerage firm. I plan to sue the seller’s home and termite inspectors. A termite inspector’s scope of duty includes moisture issues. The new homeowner association management firm and Seller’s Disclosure Package made no mention of flooding in my condo.

All the attorneys involved want me to include my buyer’s agent and the brokerage he represents in the litigation. I’m refusing to do so against my real estate attorney’s advice. This condo purchase was the first sale for my buyer’s agent. My buyer’s agent had heard a rumor about a flood in my condo during the purchase. He then inquired about the condo flood rumor with the current and former home association management companies and the seller who lived there for one year. My buyer’s agent tried unsuccessfully to

contact the prior sellers and their seller’s agent, all of whom retired and moved out of state.

My real estate attorney claims my buyer’s agent is insured and will only pay a small insurance deductible. Won’t a lawsuit sully his new career while raising his professional insurance rates?

Your agent’s Errors & Omissions (E&O) insurance deductible is between $5,000 and $20,000.

If he has insurance, his E&O insurance rates will increase for the next seven to 10 years. Plus, there is a 24/7 emotional and physical cost during litigation. It’s so stressful that an older adult might become ill and/or settle the case to avoid the stress while some agents simply shift to another line of work.

Homebuyers file the majority of lawsuits against home sellers. Avoidance of post-sale litigation includes home sellers allowing or insisting homebuyers hire inspectors. The best transactions have buyers and sellers engaging roof, chimney, termite (https://www.pestboard. ca.gov/), and whole-house inspectors. Licensees owe their clients a duty to spot and resolve issues before and during a transaction. Reports generated by seller-hired inspectors are disclosures. Full stop. Seller inspections are not a substitute for homebuyer inspectors. Sellers and agents who claim otherwise should have their checkbooks at the ready.

Realtor Pat Kapowich also shares proven consumer-protection strategies for homebuyers and home sellers at YouTube. com/PatKapowich and SiliconValleyBroker.com. Contact him at 408-2457700, Pat@SiliconValley Broker.com