155. DOES A TITLE REPORT, given TO THE BUYER, constitute DISCLOSURE

Yes it does, according to a recent California appellate court decision in the case of Reed V.s. King. The buyers were given the title report as a contingency and the title report revealed the existence of an easement. The court ruled the buyers approval of the title report was approval of the easement. The buyers claimed they didnt understand the title report and therefore they didnt understand the importance of the easement. The court ruled that neither the seller nor his agent

had to explain the easement. The buyers had an opportunity to learn for themselves what the easement meant from other sources, such as the title officer. This ruling is good protection for agents who fail to get involved with details like this. However, Gilleran Griffin believes that you should ask your buyer if there is anything about the title report that they dont understand or would like to have explained to them by the title officer.

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