Why is the attorney-client relationship so important to residential sellers?

Let's say you don't hire a lawyer, instead you save money and just trust that your real estate agent will protect you. An offer comes in, you are gently encouraged to sign it. You and your spouse sign where told and the offer is delivered back to the buyer. They sign and you celebrate!

Okay, but not so fast because when things go wrong what was in the form we signed? Huh? Then you recall this offer form came not from your agent but the buyers' agent. When asked about the form of the offer your agent said, "I can't give legal advice, but it looks like the form I normally see."

What does that mean? And why would you assume that means it's in your best interest to sign this legal document? Again I ask, "Huh?" 

Can you afford to be wrong about what is in that document?

I’m a lawyer and a licensed real estate broker. If you hire my firm to represent you I point out the pitfalls and the traps in the form the buyers had delivered. That means you get the benefit of my knowledge in both fields. 

But there is a more important benefit to sellers. What you tell me is confidential and I cannot be forced to tell anyone what you tell me. And I never would because as my client I am ethically bound to maintain what you tell me in confidence. Everything you tell me is in confidence so you, the sellers can tell it all to me without fear of disclosure. That allows the attorney and client to freely discuss what needs to be disclosed and how.

As a lawyer you get the benefit of the attorney-client privilege in which to discuss issues that may or may not require to be disclosed.

As for what you told the real estate agent? Let's hope you never get sued. Because what you and your spouse said to the agent isn't confidential and they will be deposed to find out all you and your spouse assumed she'd never tell. 

I provide two distinct services to sellers. First, we review with you the disclosure statement and make it work for you. Second, we will review any offers sent over to you and will modify the terms to better suit your interests. That's not just hand holding, that is real value. 

When you discuss the Iowa Residential Sellers Disclosure Form with your Realtor there is no privilege that attaches. So whatever you discuss can be later discovered if the buyer sues you. This is an important point and one you should not take lightly.

As the sellers you need someone who you can make a complete disclosure without fear of it later coming back to be used against you. This promise your Realtor can not make.

As a seller you need to know the terms of the offer aren't going to come back later and encourage litigation. 

So consider hiring our law firm to assist you with the sale.

This area of the law is a mine field – so don’t be the one who steps on a landmine. Call us, contact the Lombardi Law Firm and ask for either Steve Lombardi or Katrina Schaefer.

HOW TO CONTACT US

The Lombardi Law Firm

1300 – 37^th Street, Suite 4

West Des Moines, Iowa 50266

Telephone: 515-222-1110

Fax: 515-222-0718

Write to Steve or Katrina

Email: sdlombardi@aol.com or katrina.schaefer8@gmail.com

Should the seller repair, replace or remove?

As lawyers we see all sorts of problems that lead to lawsuits. As legal advisers about Iowa's seller disclosure statement we provide value by protecting sellers from creating a false impression with buyers. Here is an example of how a lawyer's experience with a home "defect" can ultimately save the homeowner from being sued. 

Real Situation: I’m looking at the swimming pool and there a water heater that has never been used except for one two-week period when the pool was installed six years ago. It’s never been turned on since then and from looking at the metal case along the bottom it appears to me the hard water circulating through it has caused the pipes to rust through. It’s new, but it doesn't work like it is new. Can the seller assume a potential buyer will see this problem and realize what they are looking at? Remember the right buyer gets excited about buying your home. Excited people aren't really thinking all that clearly. Excitement works the creative side of the brain not the analytical side. 

So what about the pool heater? Well the seller isn't going to turn it on, but I’m going to guess it doesn't work. Some sellers will fool themselves into assuming it works. If it's there it must work. So, what should the sellers do? Should sellers repair, replace or remove?

You be the judge.

What is your answer?

My Answer: Hire us and I’ll help you to protect yourselves from being sued later by the buyers with buyer’s remorse.

HOW TO CONTACT US

This area of the law is a mine field – so don’t be the one who steps on a landmine. Call us, contact the Lombardi Law Firm and ask for either Steve Lombardi or Katrina Schaefer.

The Lombardi Law Firm

1300 – 37^th Street, Suite 4

West Des Moines, Iowa 50266

Telephone: 515-222-1110

Fax: 515-222-0718

Email: sdlombardi@aol.com or katrina.schaefer8@gmail.com

How might a disclosure dispute arise?

Real Case/Real Problem - Buyer makes an offer pretty close to the asking price. Deal is quickly struck using real estate forms provided by the buyer’s broker. Buyer walked through the house several times, and through his agent asked several questions. Seller answered through his agent. Both are bachelors. House has a hot tub but because seller has been living with his girlfriend for the past couple of years he’s not opened the hot tub. When asked if the hot tub works he conveys it’s been several years since it was used but if the buyer would like to pay to fill it up and turn it on he can find out exactly how well it works.

That was the extent of the questions and answers.

Deal closes and within a few weeks buyer’s agent is calling seller’s agent and in turn seller’s agent is calling seller.  Hot tub had several problems including the heater and other things that needed to be fixed; all to the tune of over $1,000 in repairs. The company that did the repair work took the opportunity to bad mouth the maintenance along with the previous homeowner’s lack of doing the right maintenance. Seller at this point has no input nor does he hear what is actually said to the repairman or by the repairman. All he knows is he’s now being asked for over $1,000.

I get the call. “What can I do?”

Negotiate was my answer. Why he asks? It’s pretty simple really. Here are several reasons that may be important to you.

• The disclosure form did not say enough and could create the impression the seller believed there was nothing wrong with it.
• There was no written disclosure about the use history and the fact the hot tub had not been opened for several seasons.
• The hot tub had not been opened for several seasons and did need repairs.   
• And probably most important, because my time will be at the rate of $375 per hour. Who in their right mind wants to pay legal fees to iron out a dispute? Isn't it better to spend a little now and try avoid conflicts at a later time? Of course it is.
• An attorney for the buyer will likely charge a similar hourly rate.
• This will take hours to litigate.
• Seller signed an offer agreeing that loser pays attorney fees. Do you have $40,000 to spend on two law firms fighting over what was or was not said?

How Resolved?

Seller paid an additional $750 to buyer. That means seller received $750 less in equity for his home.

Would it have been worth paying $250 up front to have us review the disclosures being made before handing out the Iowa Sellers Disclosure Form to a potential buyer?

Answer: Yes. In this instance the seller would have easily saved $750. You be the judge.

This area of the law is a mine field – so don’t be the one who steps on a landmine. Call us, contact the Lombardi Law Firm and ask for either Steve Lombardi or Katrina Schaefer.

CONTACT INFORMATION

The Lombardi Law Firm

1300 – 37^th Street, Suite 4

West Des Moines, Iowa 50266

Telephone: 515-222-1110

Fax: 515-222-0718

Email: sdlombardi@aol.com or katrina.schaefer8@gmail.com

Why sellers should hire a lawyer to assist with the Iowa Sellers Real Estate Disclosure Form

There are many reasons why hiring us to assist you is a good investment. Many homeowners know things about their home, but aren't sure if they should disclose the issue or how to disclose it. Your real estate agent won't help you. They will avoid the subject of disclosure. 

I've been told by lawyers selling theirs the agent avoided discussing the disclosure statement. Agents do not want to take the chance of being pulled into any after-sale lawsuit, so they are taught to say nothing, be vague and never say how to fill out the statement.

So if this is the standard operating procedure how are you supposed to get advice? And is the form you are given designed to be purposefully vague? Is vagueness built right into the form itself? Are you being fooled into providing little negative information? Should that concern you? Want to talk with us about these answers? Call Katrina or Steve at 515-222-1110. Right now we are purposefully setting our fees low to get this service going; to get the word out that there is a better way. 

What are some good reasons to talk with us to discuss your questions about the Iowa sellers real estate disclosure statement? 

Perhaps the best reason is confidentiality. What you say to your lawyer isn't going to end up being used against you later on. You are protected by the attorney-client privilege. What you tell your lawyer is confidential, meaning you can explore what you think might be wrong in your house and how to disclose it. 

Here are some other reasons:

1. The disclosure form most real estate agents provide is a legal document.
2. Real estate agents and most real estate brokers are not lawyers.
3. The real estate agent and broker will not and cannot provide you with legal advice.
4. If you do not disclose all significant defects and repairs in the house you can be held legally liable. ($20,000 of the buyer's legal costs)
5. The disclosure statement is being read by the Iowa Courts with the offer and acceptance.
6. If you are found to be liable you can be required to pay for your own lawyer and the courts have been ordering sellers to pay the buyer’s legal fees.
7. Lawyers in these cases can have a bill of over $20,000 for representing the buyers.
8. Add up your fees to defend and the buyers legal fees and you can easily spend $40,000 for litigation costs.
9. Last I checked $250 is a lot less than $40,000.
10. Many sellers would rather not give away $40,000 of their home equity to buyers and the lawyers.
11. Ask yourself if your Realtor has mentioned any of this. Why not?
12. Ask yourself if when your real estate agent sells their home if they will arrange for a legal consultation about how to fill out the Iowa Residential Disclosure Form? ($250, yeah I think so.)

Need I say more?

This area of the law is a mine field – so don’t be the one who steps on a landmine. Call us, contact the Lombardi Law Firm and ask for either Steve Lombardi or Katrina Schaefer.

CONTACT US

The Lombardi Law Firm

1300 – 37^th Street, Suite 4

West Des Moines, Iowa 50266

Telephone: 515-222-1110

Fax: 515-222-0718

Email: sdlombardi@aol.com or katrina.schaefer8@gmail.com

Dual Agency is No Agency

What is dual agency?

Dual Agency is agency where the agent cannot favor the buyer or the seller. It’s essentially an agency where the agent owes loyalty to no one but themselves and their principal broker. Sellers and buyers agreeing to dual agency are getting nothing while the agent and broker make twice the money.

As a seller does dual agency add any value to the deal?

No, it adds nothing to your end of the deal. In fact in my opinion you’re getting nothing for the commission you are paying. I seriously doubt you will lose a buyer because you refuse to agree to a dual agency relationship.

As a buyer, is there a benefit to my agreeing to dual agency?

NO! There is no benefit to the buyer agreeing to dual agency. I believe the opposite is true.

Do you as the buyer or seller have to agree to dual agency?

NO! You are not required by any law to accept dual agency. Just don’t agree to it. It’s that simple.

If I agree to dual agency how can I protect myself?

Hire a lawyer to review all documents. That review will include the disclosure form and any written offers.

As an agent why don’t you like dual agency?

Because I think we are setting ourselves up for malpractice. In some dual agency deals we are paid twice the commission to very little and when it’s us providing the forms any mistakes in those forms will come back to haunt us and the brokers involved. How will you explain to a jury that you got were paid to do nothing besides show the house?

What should brokers and agents do to protect our clients and to maintain good public relations?

Just do as Nancy Reagan did, “Just say no.” But if you don’t say no, then refer your seller to the Lombardi Law Firm for a review of the documents including the disclosure form and buy-sell agreement. Even if you say no you can still refer your sellers and we will be happy for one set fee to provide a review of the Iowa Residential Real Estate Disclosure Statement and a buy-sell agreement. We will give them a better price if they sign up for both at the beginning of the listing. That way everyone knows what it is costing them and you get peace of mind to know a lawyer is reviewing the deal.

Why you should pay a lawyer to assist with the Iowa Real Estate Disclosure Form

There are many reasons why spending just $250 is a good investment and so today allow me to set out 15 reasons why this is a smart and a necessary investment.

1. The disclosure form real estate agents provide is a legal document.
2. The real estate broker and agents lawyer was not your lawyer when this document was created.
3. Real estate agents and most real estate brokers are not lawyers.
4. The real estate agent and broker will not and cannot provide you with legal advice.
5. If you do not disclose all significant defects and repairs in the house you can be held legally liable.
6. The disclosure statement is being read by the Iowa Courts with the offer and acceptance.
7. If you are found to be liable you can be required to pay for your own lawyer and the courts have been ordering you to pay the buyer’s legal fees.
8. Lawyers in these cases can have a bill of over $20,000 for representing the buyers.
9. Add up your fees to defend and the buyers legal fees and you can easily spend $40,000 for legal fees.
10. Last I checked $250 is a lot less than $40,000.
11. Many sellers would rather not give away $40,000 of their home equity to lawyers.
12. Ask yourself if your realtor has mentioned any of this.
13. Shouldn't you have someone in your corner? who is looking out for your legal interests?
14. If you ask your real estate agent a legal question what do they say? "See a lawyer because I can't give legal advice."
15. Ask yourself if when your real estate agent sells their home if they will get a legal consultation.

Need I say more?

This area of the law is a mine field – so don’t be the one who steps on a landmine. Call us, contact the Lombardi Law Firm and ask for either Steve Lombardi or Katrina Schaefer.

The Lombardi Law Firm

1300 – 37^th Street, Suite 4

West Des Moines, Iowa 50266

Telephone: 515-222-1110

Fax: 515-222-0718

Email: sdlombardi@aol.com or katrina.schaefer8@gmail.com

Iowa Seller Disclosure Form - Why you will get sued by the buyer

Recent Iowa court cases make it clear the law in Iowa will be read liberally and in favor of a complete disclosure that leaves no stone unturned. Sellers who are familiar with Iowa’s case law will ask what am I supposed to do. How much should I disclose? The “what ifs” will roll around in their heads night after night and in the end when they get sued the sellers will look for anyone else to pay a potential judgment.  What you said may be misconstrued. What you didn’t say will become even more critical. Remember the agents and brokers are being paid thousands of dollars in commissions. The sellers expect something in return besides just hand holding and a ride in your carriage-top sedan.

So what are you as the sellers real estate agent supposed to do? You need to strongly suggest they see an attorney for two purposes:

1.    First, to have the Iowa Seller’s Disclosure Form reviewed before it is provided to any potential buyer in order to add another layer of professional review that can protect your client the seller. While not every possible risk can be identified having a lawyer provide advice to your seller about the home repairs that have gotten other sellers in trouble is invaluable. What you want is to provide the best service possible so that sellers refer other sellers to you as a Realtor who can get the job done while providing valuable professional real estate service. $250.00 is the standard charge for working through the seller disclosure form.

2.    Second, to have all written offers reviewed by an attorney because there are provisions being inserted in real estate contracts that are not in the seller’s favor. This is necessary because real estate agents don’t fully understand the legal implications of the terms being inserted into written offers and how they protect the buyer but do nothing to protect the seller. This is a trap for the unwary seller and with agents and brokers being paid thousands of dollars in commission you will become a target with any future litigation. $250.00 is the standard charge for reviewing the buyer's written offer.

Be prepared to tell your sellers they are better off spending $250 to $500 for a legal opinion and adding another layer of protection against spending tens of thousands of dollars on hiring a lawyer to defend them against any future claim.

In a recent case a licensed real estate agent asked us to intervene when the hot tub disclosures were considered by the buyer as inadequate. Those allegations cost the seller an additional $750 in repairs even after the closing. In addition the seller needed a formal Release and Satisfaction drawn up to stop any further requests for repair work. This information is not intended to scare you, it is intended to make you aware of what is happening when buyers experience buyer’s remorse and have limited funds set aside to make home repairs. Let the blame game begin.

This area of the law is a mine field – so don’t be the one who steps on a landmine. Call us, contact the Lombardi Law Firm and ask for either Steve Lombardi or Katrina Schaefer. Steve Lombardi is an attorney with 30+ years of experience in litigation as well as a licensed real estate broker. Katrina Schaefer is an attorney licensed in Iowa and Georgia and a recent graduate of the University of Iowa College of Law.

As a lawyer and real estate broker I'm reading the Iowa cases and realize this disclosure statement for sellers is a trap for the unwary. Steve Lombardi

The Lombardi Law Firm

1300 – 37^th Street, Suite 4

West Des Moines, Iowa 50266

Telephone: 515-222-1110

Fax: 515-222-0718

Email: sdlombardi@aol.com or katrina.schaefer8@gmail.com

Iowa Seller Disclosure Form - How not to get sued as a Realtor

IOWA SELLERS DISCLOSURE: TEN THINGS EVERY IOWA REAL ESTATE AGENT SHOULD KNOW

As a Realtor selling residential real estate in Iowa you have to be very careful about what you say to the sellers. As a real estate agent you have a duty to present the seller with a seller disclosure form, make sure they fill it out and then deliver the fully filled out form to any potential buyers. I'm sure it's tempting to want to tell them how much to disclose and how to fill the form out. But when you provide advice about how to fill it out you're opening up Pandora's Box if the disclosures later lead to litigation.

What you don’t want to do is offer advice that can be interpreted to be legal advice. Because after all that’s practicing law without a license and if the sellers later get sued you’ll be included as either a defendant or impleaded as a cross-defendant by the sellers.

What you do and say can be actionable so what you should say should be failry limited. Let me list the few things you can and should say:

1.    As the seller you have an obligation to provide a Seller’s Disclosure Statement.

2.    As the seller you should fill out the form truthfully, accurately and make a complete disclosure.

3.    As a Realtor I am not a lawyer. (I am, but most of you aren’t.)

4.    As the seller if you want advice on how to fill out the form and the ramifications of filling out the form incorrectly you should seek the advice of a competent lawyer.

5.    As an Iowa licensed real estate agent neither I nor my broker are allowed by law to provide legal advice.

6.    Steve Lombardi, is an attorney and real estate broker/agent licensed in Iowa who is willing for payment of $250 to review the form with you.

7.    If you would like Attorney Lombardi to review a written offer he is willing to do the same for an additional $250.00.

8.    If you think $500.00 is too much to spend consider that in the past few years the Iowa Courts have awarded the sellers to pay the buyers’ attorney fees and in some cases the amounts have been tens of thousands of dollars. See Johnson vs. Baum, Baum and Ramseyer, Iowa Court of Appeals, July 14, 2010 – Attorney fees award of $20,000.

9.    Buyer’s remorse is what motivates many people to blame imperfection on the sellers’ failure to disclose. From a review of the Iowa cases it appears there is no end in sight to court cases discouraging buyers to sue sellers.

10.  You can contact Mr. Lombardi by calling 515-222-1110 or sending an email to sdlombardi@aol.com or his assistant, Barbara Lombardi at batubridy@aol.com.