avid
Do You Need Smoke and Carbon Monoxide Detectors to Sell a Home?
Everybody and their uncle knows you need smoke and carbon monoxide detectors to sell a home in the Sacramento region . . . or . . . do you? First place to look, of course, is the California Residential Purchase Agreement. Paragraph 7 B1 lets the preparer of the contract check a box as to which party will pay for smoke and carbon monoxide detectors. Agents who are on the ball will specify the buyer will pay for those items when the home is sold AS IS, but not every agent is on the ball.
Now, state and local laws require a carbon monoxide detector be installed on every level of the home. Some appraisers count every level, even a one-step-down family room as an extra level. They might note basements as an extra level. The danged things are only $20 a piece, and they don’t have to be wired into anything, just plugged in. But what happens if you don’t install carbon monoxide detectors? Will firefighters ax down your door? Will the CO cops break into your home dressed in haz-mat suits to arrest you?
What happens is the buyer’s appraiser won’t release the appraisal report and /or the lender will call for carbon monoxide detectors to be installed before the loan will fund. Or, the way I explain it to sellers: shit rolls down hill. The appraiser will look for the carbon monoxide detector immediately upon entering the home. If they don’t see it, they will often leave and charge the buyer for a return visit. The buyer will then complain to their agent. Their agent will then call me to complain. See where this crap rolls?
So do I naturally call the seller and complain? Are you joking me?
Because I’ve already explained it upfront and if a seller chooses not to install a carbon monoxide detector, I am not the CO police, either. Hey, I ask you. Whose fault is it the buyer doesn’t have cash and needs to get a loan? Is it the seller’s fault? As solely a listing agent, I realize agents who represent both parties do not share this attitude, and, in fact, find it shocking, from their own biased point of view.
Our state and local laws require a smoke detector in every sleeping area; however, an appraiser’s definition of a sleeping area might be different than yours or mine. Smoke detectors are also required in every hallway and on every level. If the smoke detector features a removable battery, the unit must contain a non-removable sealed battery good for 10 years. Which excludes every smoke detector in my house, now that I think about it.
Sometimes, on my AS IS listings in Sacramento I include a clause in the listing agent’s AVID that states the buyer is responsible for installing smoke and carbon monoxide detectors. It is not really legal because buyers must sign receipt of that document and may not agree, but I stick it in there anyway. When there is no loan, then it becomes a matter of whose responsibility is it to install smoke and carbon monoxide detectors (sellers), who will pay for it (buyers or sellers) and, most importantly, who will enforce it.
And I think you know the answer to that last one.
An additional seller consideration, though, is a signature on the Transfer Disclosure Statement (TDS) does state the seller promises the smoke detectors are installed in accordance with the law.
This matter should be discussed by the listing agent with the buyer’s agent beforehand, just to avoid misunderstandings. However, most buyer’s agents are trained to look for smoke and carbon monoxide detectors when they first show the home and make notes in case the buyer decides to make an offer. If agents aren’t providing this service for their buyers, they should.
Why Does an Agent Prepare an Agent Visual Inspection?
Agents who don’t prepare an agent visual inspection deserve what they get. For many real estate agents working in Sacramento today, the 1984 case of Easton v. Strassburger is nothing but a legal phrase they recall from a real estate exam and meaningless to them today. Since I had already been working for years in real estate when the California court of appeal ruled on this legendary case, the ramifications of Easton v. Strassburger struck fear in my heart and it’s never left. This landmark lawsuit changed the way I forever since have done business.
It’s odd for me to think back at that time and realize I practiced real estate for so many years before that ruling and I never inspected homes. I had team members who showed homes, but I handled the offer preparation and was responsible for all negotiation. I never personally looked at the home myself. My feeling back all those decades ago was the house had four walls, a roof and somebody would live in it, so what did I care? My job was to get our investors a good rental property. Prepare an agent visual inspection? Why?
After Easton v. Strassburger, I changed my tune. Easton bought a home on a hill in Danville from the Strassburgers. After escrow closed, the house suffered extensive damage from sliding soil and the Easton sued. The court ruled the broker had a duty to conduct a reasonable inspection and to disclose. Further, agents have a duty to disclose what they know or should have known, which could have been concluded from a routine physical inspection. There was evidence of previous slides that the Strassburgers did not disclose, which the agent should have picked up on. Ever since then, I inspect.
As Sacramento Realtors, we are not required to conduct a home inspection. But we are expected to walk the property, identify possible defects and point out areas that could become a concern. Sometimes, I shoot photos of defects I spot and include them with my agent visual inspection. If I spot a crack over a door, I note it. It could be a settling crack or it could be indicative of something more serious. I’m not a home inspector, so I wouldn’t know. Yet, I disclose.
Imagine my shock yesterday when I received a buyer’s agent visual inspection for one of my listings. The agent didn’t complete the inspection at all. The AVID was blank. Instead, the agent wrote across the face of the document verbiage to the effect that the buyer is advised to obtain a home inspection. Lazy-ass moron. I’ve encountered other difficulties in the past with this particular agent, things that left me scratching my head and wondering why this agent is not in jail. And here is yet one more piece of concrete evidence. A disaster waiting to happen. Buyers deserve so much better.