TEXAS REALTORS CAN'T BE TRUSTED
TEXAS REALTORS ARE NOW SELLING EVERY HOUSE IN TEXAS "AS IS"
The new One to Four Family Residential Contract - the standard contract used by virtually every realtor in Texas - contains the death of your legal rights.
Previously, this standard contract often referred to as the Earnest Money Contract, sold used homes to Texans with the language that the buyer accepts the property in its present condition. The idea was that the buyer was not asking for any rebuild, remodel or other major change to the structure or property. Texas courts have struggled with this language and found it to be equivalent to the "AS IS" language in UCC contracts and the like. Not satisfied with the leverage over consumers that has already been exercised, the lawyer broker committee revised the contract to include the actual language "AS IS".
WHAT DOES THIS NEW TREC CONTRACT MEAN TO YOU?
IF THE PEOPLE AT TREC AND TEXAS REALTORS AND BROKERS HAVE THEIR WAY, IT MEANS YOU CAN'T COMPLAIN ABOUT ANY PROBLEMS FOUND IN THE HOUSE AFTER YOU PURCHASE IT UNLESS THE SELLER KNOWINGLY AND INTENTIONALLY DEFRAUDED YOU ABOUT THOSE PROBLEMS.
HOW DOES THE NEW TREC CONTRACT CHANGE THINGS?
NOW, IF YOU SUE A SELLER OR A REALTOR, THEY WILL IMMEDIATELY POINT TO THE "AS IS" CLAUSE AND CLAIM YOU HAVE NEGATED YOUR RELIANCE ON THEIR REPRESENTATIONS ABOUT THE HOUSE. THINK OF IT AS A "GET OUT OF JAIL FREE" CARD FOR ALL TEXAS REALTORS AND HOME SELLERS AFTER JUNE 1, 2014. THEY CAN NOW MAKE FALSE STATEMENTS ON THE SELLERS' DISCLOSURE NOTICE AND CLAIM KING'S X AGAINST THE BUYER USING THE "AS IS" LANGUAGE.
WHAT CAN A TEXAS HOME BUYER DO TO AVOID THE "AS IS" LIMITATION?
STRIKE IT OUT. JUST DRAW A LINE THROUGH IT AND TELL YOUR REALTOR YOU ARE NOT BUYING THE HOUSE "AS IS". IF THEY WANT TO SELL THE HOUSE, AND THEY WILL, THEY WILL LET IT GO. IF THEY THINK THEY HAVE ANOTHER BUYER LINED UP AND THEY INSIST ON KEEPING THE "AS IS" CLAUSE, THEN YOU ARE BETTER OFF ANYWAY BECAUSE OTHERWISE, YOU ARE GOING TO BUY A HOUSE AND GIVE UP ALL OF YOUR RIGHTS TO COMPLAIN ABOUT PROBLEMS THAT WERE NOT DISCLOSED.
I WILL PROVIDE YOU WITH A CONTRACT YOU CAN USE THAT DOES NOT CONTAIN THE "AS IS" LANGUAGE FOR $250. GO TO ANY REAL ESTATE ATTORNEY AND TELL THEM YOU WANT TO WRITE THE CONTRACT WITHOUT THIS DRACONIAN DESTRUCTION OF CONSUMER RIGHTS.
WHAT IF I BOUGHT THE HOUSE ALREADY USING THIS CONTRACT?
YOU CAN STILL MAKE YOUR CLAIMS BUT IT WILL REQUIRE CERTAIN FACTS TO EXIST SO THAT YOU CAN PROCEED. CHANCES ARE YOU WILL BE ABLE TO PROCEED BUT YOU HAVE TO FLESH OUT CERTAIN FACTS. IF YOU ARE IN THAT POSITION, CALL ME. 512/261-0044.