Virginia is a Caveat Emptor State – What Does That Mean to Homebuyers?

In the Commonwealth of Virginia, a large chunk of the burden to discover the pluses and minuses of a home fall on the buyer.  You see, Virginia is a caveat emptor state, which means “buyer beware”.  Now, if you are buying a home with a lot of pluses, that is great!  But what about minuses, perhaps worse yet minuses that aren’t readily apparent.  In Virginia, there is little that seller’s have to disclose to the buyer.  The seller is required to provide a Disclosure Statement that basically says, “beware Mr. and Mrs. Buyer, it’s up to you to find out problems with the home that we haven’t already disclosed”.

So, how as a buyer do you protect yourself?  For the purposes of this post, I’m going to go beyond your typical forms of protection such as a home inspection contingency.  I want to focus on a few items which, while rare, should be brought to your attention.

Meth Lab Operations
A home in which methamphetamines have been produced is one which presents significant health risks.  Once the chemical residue is in the walls, floors and air ducts, it’s there for good –that garbage is permanent.  Health risks include breathing problems, skin problems and migraine headaches.

Here are a few ways to dig up some more information about a home you are considering to see whether the prior owners have left this home in an unhealthy state due to their illegal activities:

Sexual Offenders
Let’s face it, even if you don’t have kids, you’d probably rather not live too close to a sex offender.  These offenders come in many forms, from the more benign to extremely violent.

To find out more information about registered sex offenders in your area, visit the Virginia Sex Offender Registry at http://www.sex-offender.vsp.virginia.gov.  Here, you can enter a Zip Code, County or City and see a list of sex offenders including where they live and work.

Chinese Drywall
This problem has just recently been in the public eye and it not only poses significant health risks, but it can damage the home as well.  Bad Chinese drywall emits a gas which not only smells, but can damage plumbing, wiring, A/C units, appliances and cause respiratory problems.  In Virginia, the Tidewater region was the most affected, but bad Chinese drywall has turned up in Loudoun County as well.
Signs of bad Chinese drywall include: the smell of rotten eggs, tarnished copper or silver and homes built between 2001-2008.  A proper test may take 2-4 weeks to complete.  If you are considering a home with bad Chinese drywall – run, don’t walk.  The only way to repair this problem is to replace the drywall and other items affected such as plumbing and electrical systems.

This is by no means an exhaustive list of items about which you should be aware when you’re buying a home.  Please feel free to contact me anytime for more information at 703-403-0536 or patrick@patrickduffyrealtor.com.

UPDATE NOVEMBER 16, 2010: A circuit court judge in Florida has relieved builders of some liability for defective Chinese drywall.

Can Home Sellers Help Homebuyers Get a C.L.U.E.?

The answer is, yes. Allow me to explain.
More and more homebuyers in the Northern Virginia area are asking for a C.L.U.E. (Comprehensive Loss Underwriting Exchange) Report for the homes they are considering. These reports provide dates of claims, insurance company(ies) involved, the type of policy, whether the loss was related to a named catastrophe (hurricane, etc.), location of the loss (on or off property), the amount paid and cause of the loss.
It is standard industry practice to purge losses over five years old, so your C.L.U.E. Report will cover the last five years.

Why is this important?
Well, insurance claims on a home can affect the insurability and rates for a home which means you could have difficulty getting a policy and/or you could be looking at a more expensive premium. And, wouldn’t it be nice to know a little more about the history of the home? Think of it like getting a CARFAX Report on a used car you are considering.

C.L.U.E. Reports can only be ordered by the homeowner
A word to Sellers – for about $20, here is an opportunity for you to make your home more marketable by giving the buyer added piece of mind.

A word to Buyers – consider including a C.L.U.E. Report contingency in your offers to purchase.

For more information, please don’t hesitate to contact me at 703-403-0536 or patrick@patrickduffyrealtor.com.

Sample C.L.U.E. Report

Order a C.L.U.E. Report now

The C.L.U.E. Report and Its Importance to Buyers and Sellers of Real Estate

“C.L.U.E.” is a registered trademark of LexisNexis Risk Solutions Inc.

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