Alright, we’re diving into the wild world of real estate, where contracts are king and disclosures reign supreme.
Let’s delve into the history of our industry. In 1996, the era of dial-up internet and fax machines the size of small cars, our legal guru, Bryant McComber, mentions to us a game-changing idea: the AVID, or Agent Visual Inspection Disclosure fully executed prior to contract formation staves off any three-day right of recision.
Once we initiated this, it became a hero in our story, a tool that allowed sellers to eliminate the three-day right of recision by handling disclosures before contracts were even drafted, and allowed us to be the winning bidder when everyone else still had the statuatory escape clause. It was like real estate magic, and soon, everyone was jumping on the AVID bandwagon.
We had no idea back in 1992 when we started pre-sale disclosure packages, that they would eventually catch on like wildfire and become a standard of practice in our area—just as the pre-sale AVID idea did a few years later— both designed to complement non-contingent offers, eliminating the dreaded thwarted deal.
But hold onto your hats, because the plot thickens. Fast forward to 2021, and the law decides to throw us a curveball. Part IV of the TDS? It’s no longer a trigger for a completed TDS. And with that went our trusty old strategy of nabbing those AVIDs pre-contract formation.
So, what’s a savvy agent to do? Well, it’s time to pivot. Instead of chasing down those AVIDs, we’re taking a step back and reevaluating our game plan.
Here’s someting we’ll bet you never considered…
Picture this: you’ve got a slew of eager buyers vying for your listing, each armed with their own stack of AVID disclosures. But here’s the kicker – if you don’t pass on those juicy details to the winning bidder, you’re playing with fire. One missed detail, one comment overlooked about a bus cruising by buried in the lowest offer’s AVID, and bam ! You’re facing a legal headache faster than you can say “escrow.”
But fear not, for there’s a silver lining in this legal cloud. By holding off on those pesky Buyer agent AVIDs until after the ink is dry on the contract, you’re not only dodging the three-day recision bullet, but you’re also saving yourself a world of trouble down the line.
So, next time you’re knee-deep in offers and drowning in paperwork, remember this rule: You can’t get in trouble for failing to disclose if you don’t have anything to disclose.
Drew and Christine Morgan are experienced REALTORS and NOTARY PUBLIC located in Belmont, CA. They have been assisting buyers and sellers in their community for over 30 years. Drew and Christine have received the coveted Diamond award and ranked among the top 50 agents nationwide and top 3 in Northern California by RE/MAX. To contact them, please call (650) 508.1441 or email info@morganhomes.com.
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This article provides educational information and is intended for informational purposes only. It should not be considered as real estate, tax, insurance, or legal advice, and it cannot replace advice tailored to your specific situation. It’s always best to seek guidance from a professional who is familiar with your scenario.
BROKER | MANAGER | NOTARY
