Privity of Contract is a legal term that has to do with a contract between two parties. I am not a lawyer and I’m not writing this article from the standpoint of representing myself as one. Nor am I trying to replace what a lawyer would have to offer about this topic. However, knowing about this term when buying a home might save you a lot of time and money and grief down the home ownership road.
In real estate, Privity of Contract can apply in many ways. One common way is when a seller hires a contractor to perform work in order to get their home ready to sell. Let’s take for example a home seller decides that they want to hire a roof inspection company to perform a roof inspection of their property because their home has a flat roof. The home seller wants to use this roof inspection report as part of their selling package to prospective buyers. When home buyers come through the home, they are presented with a packet of information about the home, including a copy of the roof inspection.
When Buying A Home Get Your Own Inspections
Should a home buyer give any merit or credence as to the validity of any reports provided by a home seller? The home buyer could be informed by the inspection report. However, if the home buyer wants a guarantee on the condition of the home with respect to the age of the roof and perhaps water damage to the home from the flat roof, the home buyer should get their own report. This is where the Privity of Contract comes into play.
Privity of Contract in this real estate example suggests that any contractual arrangements between the seller of the home and contractors they hire do not necessarily follow through to a home buyer. So in a sense, if the roof inspection report in this case doesn’t show water damage and indicates a brand new roof and you buy the home based on that report and then find water damage you might not have any recourse on the prior home owner or the roof inspection company. Here’s where me not being a lawyer comes – you may have some claim through some real estate law that I don’t know about, so it is a good idea to get your own legal advice on this.
What is the point of learning about the term Privity of Contract? The point is simple – get your own inspections. By getting your own inspections you can better guarantee or insure that you have some recourse if later you find something wrong with your newly purchased home that was a pre-existing condition that wasn’t declared to you when you bought the home.
Home Seller Property Declarations – Trust But Verify As A Home Buyer
A home seller is supposed to declare what they know of their home and if they don’t and you can prove it, you may be able to cover damages etc. for things that made need fixed etc. in some sort of lawsuit against the prior owner.
Again – this is where I have to stop and remind you again that I’m not an attorney and I’m not representing myself as one. You need to pick up the phone and talk to a real estate attorney if you suspect that you have a pre existing problem with your home that may require involving the prior owner. For that matter, you may want to speak to a real estate attorney before you purchase a home to get a sense of what your legal rights are as a home buyer and pre existing problems with a home that you purchase but don’t find out about until after you own the home.
So the bottom line in buying a home is that you can be informed by inspections and reports that a home seller may present in their selling package. For the best protection and assurance that you are getting what you think you’re getting when buying a home get your own inspections.
If you want more information on this topic please ask EdGAR.
