You should always help the ones you love. As a local Norman realtor, I feel the need to update you on some recent real estate disclosure changes. If you or someone you know is looking to purchase a home, or simply wants to stay in the loop, we're here to share updates on the paperwork involved. The good news? The change is most definitely for the better.
For a number of years, the Oklahoma Board of Realtors has lobbied for these changes to property disclosure statements and they’ve finally succeeded. The current president of the Norman Board of Realtors, Scott Foster said, “Sellers need to know it’s important to disclose, disclose, disclose.” After hearing that statement, I can’t agree more with him. The biggest challenge these real estate disclosure alterations in combat are insurance claim fraud.
Have you ever heard of C.L.U.E. reports? It's an abbreviation for Comprehensive Loss Underwriting Exchange and basically shows if any insurance claims have been made for a property in the last five years. When buying a home, this comes in handy as you become aware of the damage inflicted on the home as well as the repairs that were made.
Fraud occurs when a homeowner makes a claim and then pockets the money rather than using it towards the repair. In other words, they disclose that a repair was made on their C.L.U.E. report. Consequently, making the realtors and buyers believe that the repair was actually made.
The problem arises after the purchase is made whenever the buyer attempts making an insurance claim, ultimately causing the so-called “double claim” that most insurance companies don’t pay. The new changes that are coming require the seller to disclose if they've ever received an insurance claim for damages in which they didn't repair. If they choose to lie, they will be held liable.
When looking at the home listings in Norman, make sure to carefully take into consideration what is on the C.L.U.E. report, yo ensure you have all the information you have when considering a home purchase.