BROKER RISK MANAGEMENT
WEEKLY PRACTICE TIP
Handling Personal Property at Listings
Q: I have a REO listing. The sellers apparently left in a hurry and there was a lot of their personal stuff strewn throughout the house. It was junk, e.g. old clothes on the floor in piles, old furniture, etc. I hired a cleaning company to haul it away. Now, the former owners are claiming that I threw away valuable personal possessions and want me to pay them more than $4,000 for the missing items. I am flabbergasted at this outrageous request; but they state they will take me to Small Claims Court if I don’t pay up. What to do?
A: The best approach at this time will be to deny the claim, and fight them in Small Claims Court if you have to. But, you could have taken some steps to protect yourself.
This is a common problem with sellers who do not take their personal possessions when they leave. It also is a problem with tenants when they vacate and leave their possessions behind.
TENANT PROPERTY: There are specific steps which must be taken when a tenant leaves personal property behind.
For more information see Weekly Practice Tip entitled “Tenant Property Left Behind”
Also, see the California Department of Consumer Affairs article entitled: “Options For a Landlord: When a Tenant's Personal Property Has Been Left in the Rental Unit: Legal Guide LT-5” at: http://www.dca.ca.gov/publications/legal_guides/lt-5.shtml
SELLER PROPERTY: When dealing with seller’s property the best practice it to follow similar procedures:
1. Log and identify the property.
2. TAKE PICTURES. When the claim is made that the “junk” is “antiques,” you will have proof. (This is why mobile phone cameras were invented.)
3. If there is any doubt as to value, place the property in a safe place out of the way, such as a garage, and attempt to contact the seller and give them a reasonable time to respond.
4. If there is no response in a reasonable time, dispose of the property.
5. Advise buyers that they should consult with an attorney if they have any doubts as to whether the seller’s personal property has any value, and the steps to be taken.
DO NOT FORWARD TO CLIENTS. This Weekly Practice Tip is for the exclusive use of clients of Broker Risk Management and their agents. It may not be reproduced or distributed without the express written consent of Broker Risk Management. The advice and recommendations contained herein are not necessarily indicative of standards of care in the industry, but rather are intended to suggest good risk management practices.