ADVISORY AND DISCLOSURE REGARDING THE USE OF A
CONSTRUCTION AND/OR REMODEL CONTRACTOR
Property Address: ____________________________________________ (the “Property”)
Seller has indicated an interest in retaining a contractor or construction/remodel company to remodel, improve and/or repair the Property to prepare it for sale (the “Contractor”). Seller is advised to consider the following:
- The Contractor is independent of seller’s agent and real estate brokerage (the “Brokerage”). The Brokerage has no involvement in the ownership or supervision of the Contractor or its work. Seller acknowledges that seller is retaining the Contractor independent of the Brokerage and based on seller’s independent research and verification of the qualifications of the Contractor.
- Seller is advised to research the Contractor and any other professional seller seeks to retain. At a minimum, seller should check the Contractor’s licensure on the Contractors State License Board (cslb.ca.gov), as well as ensure that the Contractor has sufficient insurance, including workers’ compensation, commercial general liability insurance and any other insurance seller deems necessary or appropriate.
- Brokerage does not represent or warrant the qualifications of the Contractor. Seller agrees to hold Brokerage not liable for any claims, conditions, or any other liabilities created by the Contractor. If seller takes action against the Contractor and a claim is asserted against the brokerage, Seller agrees to indemnify the brokerage for any liability arising out of that claim, including, without limitation, the payment of attorney’s fees, costs, settlement, and/or any potential judgment. The Brokerage shall have a right to retain separate counsel at seller’s expense.
- While the Brokerage may render opinions or make suggestions regarding potential improvements and/or repairs to be made to the property to make it more marketable, the Brokerage does not guarantee that such improvements will increase the value of the Property. Further, Seller acknowledges that the real estate/housing market fluctuates making prices difficult to predict.
- All contracts shall be directly between the Contractor and seller. Brokerage will not be a party to that contract. Seller acknowledges that it is seller’s responsibility to work with the Contractor to ensure that appropriate permits are obtained and finalized if required for the work undertaken by seller and the Contractor. Seller acknowledges that the brokerage is not responsible for procuring, obtaining, or handling permits relating to the construction of any repairs or improvements undertaken at the property.
- Seller also acknowledges that seller is responsible for disclosing to any potential buyer if permits have not been obtained or finalized.
- If several contractor specialties (carpentry, plumbing, electrical, roofing, etc.) will be working on the Property, it is recommended that seller consider retaining a licensed General Contractor to oversee and supervise the work. The General Contractor can obtain “Lien Releases” from all subcontractors and materialmen who provide services or materials to the project. See for example: http://www.cslb.ca.gov/Resources/GuidesAndPublications/LienReleaseForms.pdf
SELLER IS ADVISED TO CONSULT WITH THEIR QUALIFIED CALIFORNIA REAL ESTATE ATTORNEY, ACCOUNTANT OR CONTRACTOR IF THEY HAVE ANY QUESTIONS OR PRIOR TO EXECUTING THIS DISCLOSURE AND ADVISORY.
Dated: _____________________________ ____________________________________
Seller
Dated: _____________________________ ____________________________________
Seller