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We are selling our house. When signing the contract in our lawyers office he said we have to give the buyer a $500 credit so they can't come back and sue us after the sale of the house. Can anyone give me some insight on this? We do not remember getting any credit when we bought our house (and our lawyer is terrible but its too late to change now)
In NY instead of signing the disclosure form, where you have to say everything you know is wrong with the house, you can give the seller a $500 credit. Trust me it is worth the $500, unless you built your house, on LI there is no way you can disclose everything that might be wrong with it since the housing stock is so old.
IN other states where there is no option but to sign the disclosure, you can sue a seller for not disclosing a defect within the house. Let's say you know your house flooded during Sandy...you would have to disclose that, even if you aren't in a flood plain. If you don't, and the house floods again during the next storm, you can be sued. Or let's say you used CHinese drywall to finish your basement and you've been sick ever since, but you don't disclose it. You can be sued.
In NY instead of signing the disclosure form, where you have to say everything you know is wrong with the house, you can give the seller a $500 credit. Trust me it is worth the $500, unless you built your house, on LI there is no way you can disclose everything that might be wrong with it since the housing stock is so old.
Thank you, if this is standard on LI I feel better. I just don't trust this guy.
I closed last year and had this on both the sale and the purchased houses. It is standard in NY. However when I did it, we had an arrangement that they got the credit of 500, but then upped the purchase price by 500 so it was a wash.
Although most attorneys advise there clients to give the mandatory $500 credit instead of providing the disclosure form, you should be aware that if you fail to disclose a material defect you can still be sued.
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