The seller’s duty of disclosure also includes the unpleasant neighbor.
Home sales are something that most of us do both and several times during our residential life. And there are many conditions to take care of, both of legal and practical nature. Among other things, you as a seller (together with the real estate agent) have a duty of disclosure and you have everything to earn honestly with regard to conditions that may affect sales.
This also applies to conditions that do not directly concern the technical and legal condition of the property. For example, a difficult neighbor.
– Our position is that if the difficult neighboring relationship could be of significance to the buyer, we will inform it, “says Karsten Onsrud.. no. He is Director of Market and Communication at Krogsveen.
– And in general, we always ask if it is a relationship that he or she believes is of importance to the sale.
Managing Director of the Norwegian Real Estate Association (NEF), Carl Geving, says that in some cases it may be difficult for brokers to get the important information.
– Often it may be that the seller retains information that he or she believes may have a negative impact on the price, such as a neighboring rule about a home hedge that limits the view or highly annoying noise from neighboring property. However, we perceive that our members make sure that they know what they think is important to the buyer, “he said. no.
According to the professional responsibility of Huseiernes Landsforbund, Anders Leisner, it is basically the seller who is responsible for providing information about all matters that will affect a sale, and therefore also for the buyer.
– As a seller, you are under obligation to disclose facts about the property that you know and which the buyer must be able to make an appointment with.. That the neighbor makes life sick for all around him is definitely a circumstance of the property in the sense of the law. If it can be assumed that the information about the neighbor will normally be of importance to a buyer, in the sense that it would affect the agreement between the parties, there may be a shortcoming if no information is disclosed, he elaborates in an email to click. no.
“It is certain that the seller of real estate is obliged to disclose problem issues, such as shame at house breaks and the like. However, it is not stated that failure to fulfill the duty of disclosure gives the buyer the right to a price reduction, “says Paal Haugaard at Hegnar. no matter a current case that stood for Borgarting Court of Appeal in January this year. Haugaard is a lawyer and partner in law firm Bing Hodneland.
The difficult neighbor
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In the current case, which was in charge of Borgarting Court of Appeal in January this year, a person had bought a residential apartment in 2008. The following year, the neighboring apartment was sold and moved into a loud neighbor, who repeatedly caused house break. It all ended that the person was sentenced to sell his apartment, but then the forfeited neighbor had sold his apartment. However, the buyer had not been informed other than that it was “Dispute with neighbor.”. The housing team has settled “as it was in the sales task.
The buyer demanded a price reduction of up to 300,000 kroner and was partially awarded to the district court. The counterparty, however, appealed to the Court of Appeal, which came to the opposite conclusion. The reason was that the conditions had settled themselves, because the problematic neighbor had moved.
However, the court acknowledges that the stressful neighboring relationship, which they write in their judgment, was considered to be a lack because the sales document did not clarify the weighting of the neighboring relationship.
What changed the whole situation was, therefore, that the difficult neighbor moved, and then, in the opinion of the court, the basis for the price decline was lost.
You must be notified of problem issues
But if the neighbor had become living, the situation would probably have been completely different.
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– Everything that sells really seems to be uncomfortable or ill-advised to disclose from the desire for the highest possible price, should be on the table. Consequently, it is mandatory to disclose bad neighborhood conditions, and I am reasonably sure that the buyer had won a discount if the fraud maker had not been thrown out, Advocate Paal Haugaard explained to clicks. no.
However, the challenge for the courts in these cases is to determine the size of the price reduction.
Haugaard emphasizes that for the Court of Appeal in this case did not matter whether there was a shortage but about the time when the assessment of the defect was made. And the court concluded that although the problematic neighbor lived there when the apartment was taken over, it did not matter because she was thrown out right afterwards.
In other words, the shortcomings had disappeared due to the later development and, in the opinion of the Court of Appeal, one must consider the current situation, ie the question of price reduction.. that at the time of the judgment there must be a current or lasting value-reducing relationship, “he writes at Hegnar. no.
– It is our expectation to our members that if they get knowledge of conditions that will affect the buyer, for example, it is a litigation with the neighbor during launch, they make sure that this is relegated to potential buyers, says Geving i NEF.
This answers the brokers
Click. no has asked six of the largest real estate chains in Norway about what practices they have in terms of information about difficult neighbors. So they replied:
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“If the difficult neighborhood relationship is at a level that is perceived to be problematic for the current owner, and it may be of significance to the buyer, we are obliged to inform. According to the Dispute Act, the seller will also have such a duty of disclosure “(Hedda Ulvness, Managing Director).
Active Real Estate
“Megler’s investigation and disclosure obligation is governed by the Real Estate Act Act (eml) 6-7, but it does not say anything in relation to investigations regarding any possible neighbor / neighboring occupation. However, if a broker has received information about a neighbor’s neighbor / neighbor’s residence, it follows that brokerage before the trade is terminated shall give the buyer such information as “the buyer has reason to expect and which may affect the agreement”. In other words, a concrete assessment of brokerage must be made against this point. The information is therefore not provided in the prospectus, but is communicated to interested parties in writing so that they can take into account the information when considering submitting a bid for the property in question “(Finn Magnus Rogne-Hansen, adm.. dir).
“Broker shall provide the buyer and seller with advice and information of importance to the trade and its execution, cf.. eml. § 6-3 (2). Broker will furthermore take care of both buyers and sellers interest in the trade, cf.. eml. § 6-3 (1). This means that if your broker is aware that there is still trouble from the neighboring apartment, this is an enlightenment that must be communicated to the buyer before the trade is entered into.. Continuous noise from neighboring housing can affect the interest of the apartment and it could affect the price of the accommodation “(Bodil Næssvik, Kjedesjef competence / quality).
Real Estate Agent 1
“It must be considered whether the relationship affects the use of the property, for example, by reducing well-being, physical danger, obstacles in the use of public areas, etc.. And basically, the seller is obliged to provide information about problem issues of a certain severity. Information should be provided in the self-declaration form if the seller signs residential sales insurance, in addition, the information must be provided by the sales assignment. The information must be given at an early stage of the sales process so that potential buyers have all the relevant information available before submitting bids. Seller must ensure that he can document that the information has been provided so that subsequent conflict is avoided.
Some bad neighborhood conditions are based on a personal conflict between seller and neighbor. It is therefore natural to assume that the poor neighboring relationship will cease when the seller moves. In many cases, it would not be necessary to disclose such personal conflicts unless the seller assumes that the neighbor is likely to continue the conflict with the new owner. The boundary draft here can be difficult “(Line R. Røstad, Quality Manager).
“According to. eml. Section 6-7 (1), the broker shall provide the buyer with information which he has reason to expect to receive and which may affect the agreement. If the broker receives information of such a nature, this will be included in the sales assignment or otherwise disclosed to bidders / stakeholders.. Troublesome neighbors, whom the seller perceives as a problem, will inform the broker about his / her immediate knowledge of the relationship “(Norleiv Pedersen, chief executive officer).
“There will always be an element of discretion in such an assessment because there are degrees of neighboring streets. And it will also matter what the seller tells to the broker. It will also matter what the cause of the difficult neighborhood relationship is. But if we believe the relationship will affect a buyer, we will inform it “(Karsten Onsrud, Director of Marketing and Communications).
Sold “as it is”
Seller’s duty to disclose matters that will affect sales is the basis of a mortgage. “The buyer is required to disclose any adverse circumstances in the property that the seller is aware of or which he may be aware of at the time of sale. Circumstances can be so many, and are not limited to common mistakes and deficiencies. Also unfortunate neighborhood conditions, flooding and that the building is self-built m. v. hit by the provision “, writes the website junk square. no on their web pages.
They link this duty of disclosure to what is often written in sales tasks that the home is sold “as it is”. This follows from section 3 to 9 of the Danish Avance Act.
However, even if the seller has made reservations, there will still be missing if the seller has given false information or failed to provide information.
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There will also be deficiencies if the housing is in a significantly worse condition than the buyer had reason to believe based on the purchase price and the conditions in general.
In assessing whether there is a shortcoming based on the standard of housing, Jusstorget writes that the courts on a number of occasions see what remedial costs for the shortcomings are and compares these with the purchase price.
“If the remuneration costs correspond to 3-5% of the purchase price, the courts have concluded that the relationship is significant and there is a shortage”, they write.
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