For as much as my focus is on research to improve upon or create opportunities for real estate investors, developers, and brokers, I'm also amazed at how often companies fail to properly follow through on due diligence.
The below linked story about a municipality looking to call back an auction sale made on a property for delinquent taxes is one such example. It turns out the reason the taxes were not paid is because the owner had been deceased for several years.
Although we don't know how many stories and transactions like this there have been, it makes me wonder who knew what going in. Did the buyer make their bid at the auction knowing the owner was deceased? Or was it based on getting a certain price compared with the value of the property?
Either way, that buyer had their criteria met in making a successful bid and potentially more information than the "seller", in this instance, did. For my clients and students, the goal is always to have at least one piece of information ready which helps in negotiation and supports my side.
Factors such as additional supporting comps, a more favorable ARV (after repair value) estimate, or pending zoning changes would not fall under non-disclosure. There are many things to look at when putting a buying or selling proposal together. Not having every possible piece of information to help your cause can prove very costly.
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