MLS build date incorrect. Any recourse?

Question

Hi. I’m in the process of closing on a duplex and the appraisal came back where it identified the property as being built in 1972 versus 1982, as was listed on MLS.  My biggest concern is the popcorn ceilings and higher potential for asbestos. I have to fix some issues found on the inspection (soft spot, sagging ceiling and large crack in 3 separate rooms) that the sellers would not fix. This could increase these costs to have someone remove asbestos before or during the fix while there are tenants in the home.

I requested a reduction on the price and they refused and won’t allow me to receive my earnest money back if I back out. Is there any thing I can do or do I consider this an expensive lesson? Also, how/what should I be doing in the future to verify the listing info?  Thanks so much!

Bill B. · Answer

I assume the listing said buyer to confirm all information s I assume it has for the last 20 years.

That being said. If you had an inspection contingency you simply say it didn’t pass my inspection, so I’m backing out, and you get your earnest money back.

That should be enough to get you out of it. If it doesn’t you could have them look up the federal law that says you have to be given a lead paint disclosure before you are committed to the contract. (Because you can also back out after you read it.)

Correct Answer: Before the purchaser or lessee is obligated under a contract for sale or lease. Purchasers or lessees must receive the lead-based paint disclosures before they become obligated under a contract for sale or lease, which generally occurs when the contract or lease is signed

Jonathan Bombaci · Answer

I was going to recommend leaning on the lead paint as well since the magic date is 1978 this should be a valid reason to back out of the contract, depending on your state laws, and your contract.

I assume you already called the town and confirmed the actual build date as 1972 and you’re not just relying on the appraiser. I’ve seen them pull the wrong date before.

Silly question, do you have an agent or attorney on your team to help prevent issues like this or to find ways to get you out of the contact?

David Avery · Answer

If the "'popcorn ceilings " are already painted then it is not as severe to mild.

But I always think that Real Estate agents are responsible for issues like this.

It should be brought up and worked out prior to closing.

Inspectors, inspections, etc, all are related to the sale of the property and the agents

that represent the seller and buyer should be earning that  comish!

Kim I think if you have an agent then lean on them and tell them to fix it!!!  or tell

you a way to exit the deal!!!

Reinaldo Lopez · Answer

@Kimberly Roth, hi I agree that MLS information is not guarantee nor accurate,  on my inspection I always refer to county records. About popcorn ceilings, that is not a big deal, you saw it when look at the propery, asbestos if any, as long as it is not touch or disturb they are not required to be removed. Unless you do a mayor rehab. Look in the report to see if he mention it and recommend professional advise. For a issue about missleading information from the agent, consult with an attorney in real estate.

Jonathan R McLaughlin · Answer

@Mark B. @kimberly Roth

Mark’s answer is a good one and I’m fact many banks will NOT Lend to pre-1978 properties, especially for investments

Patricia Steiner · Answer

I never rely on the MLS for anything other than the offering.  Your inspector would have known the age of the house from doing a permit/property appraiser search prior to the inspection.  That would have been the time to cancel if you had any concern at all.  If your concern is health-related/lead paint, then know the facts:

"Through the 1950s and 1960s, the use of exterior lead-based paint declined significantly, and ended by the early 1970s. In 1971, the federal Lead Poisoning Prevention Act was passed. In 1978, the federal government banned consumer uses of lead paint."  (Source:  http://leadlawsuits.com/history/the-history-of-the-use-of-lead-based-paint/#:~:text=Through%20the%201950s%20and%201960s,consumer%20uses%20of%20lead%20paint.)

Most lead based paint by 1972 was exterior paint.  You'll want to avoid sanding it but there are now sealant paints on the market that effectively and safely deal with it.  Asbestos was used into the early 1990s.  Most contractors know what it looks like and how to safely deal with it.  Lead/asbestos or not, these are repairs that are just a pain, messy, and you don't want to breathe any of it regardless of what it is.

And, the build date is not the most important date; look for the effective age.  Both are reported together on the property appraiser's portfolio page as (example below):

Year Built: 1939

Effective Age: 38

You can handle this...

David Avery · Answer

E.M. if you have $1000 Earnest money then $500 is not as bad if you had $5000.  ($2500 ).

Too bad agents involved can't make this work.  If people would just communicate I bet the deal

could work and everyone gets $$$.

James Villarreal · Answer

Appraisers will use MLS data however, the county appraisal district information will almost always supercede MLS data. More often than not the data will line up, however… MLS data can have all kinds of errors. Check the CAD/tax data of a property to confirm stuff like year built, square footage, site size, etc.

This seems like a classic example of “trust, but verify”. Good luck!

Kimberly Roth · Answer

@Mark B. Thanks! I will check with the lender.

Mark B. · Answer

@Kimberly Roth

Have the pop-corn ceiling tested for asbestos and make a decision based on the results. If the test comes back positive, the seller should be willing to negotiate, now they have to disclose it.

Do you still have a lender contingency that has not been waived? They may be willing to state they are not willing to lend based on no more than your request.

MLS build date incorrect. Any recourse?

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