Square Footage Law/Form Revisited – Important, please read

From Kelly Monaghan, Esq., Holloway and Monaghan

SQUARE FOOTAGE LAW revisited:
If the licensee provides any party to the transaction square footage information, the licensee is required to identify the source of the information.
The source, referred to as “third party information,” includes an appraisal or measurement prepared by a licensed appraiser, a survey or developer’s plan prepared by a licensed surveyor, tax assessor public records, or building plans used to construct or market the property.

The law states the licensee has no duty to the seller or purchaser to conduct an independent investigation of the size or area of the property or to
Independently verify the accuracy of the third party information.

The law does not require any square footage information to be provided. However, IF provided, the licensee should provide information from all sources available to them, especially if the reported square
footage is not the same. Additionally, because the law does not limit the third party information previously obtained in connection with the pending real estate transaction, uncertainty exists whether third party information previously obtained by the licensee in a prior real estate transaction involving the same property must also be discussed.

If third party information is provided, the failure to disclose all third party information in the possession of, or otherwise available to, the licensee may be problematic. The adoption of, and compliance with, a written record retention policy will limit the third party information retained in the licensee’s files, including electronic copies. This in turn will assist in determining what third party information, if any, is to be provided to the parties. Prior to discarding any third party information,a written record retention policy that complies with applicable rules, regulations and laws should be adopted.

Advertisements

One thought on “Square Footage Law/Form Revisited – Important, please read

  1. Reblogged this on kwra and commented:

    Just In case you did NOT view this on Monday when we originally sent it out, please read this, it is from Susan Beach and it is very important re: how you do business!!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s