• Less disclosure — first, the expectation for the San Francisco homebuyer is there is going to be less disclosure available for the home, because by definition, a trust is carried out once a person is deceased or becomes incapacitated. There is much less disclosure about the home available to the homebuyer. Therefore, the Real Estate Transfer Disclosure Statement or the RETDF is exempt, as are a lot of other documents, exempt from this type of sales, thus leaving the homebuyer with a lot less information that should be supplemented by further inspections and a thorough examination of the property.
• Quick close — secondly, it’s important to understand that most trust sales are carried out expeditiously, with some expectation of quick closure — meaning the home sale will represent the largest asset for many estates and only once it is sold and brought to close of escrow, can closure on the passing or incapacity of the individual be settled. There is some expectation for these sales to be carried out expeditiously.
• Lack of liquidity — thirdly, understand that most trusts lack the liquidity and the motivation to make improvements on the home, so many of these properties are going to be sold ‘as is.’ So, once again, I recommend that a thorough inspection of the home be carried out prior to the purchase, to ensure that the buyer has a very good understanding of what matters related to the home condition require immediate repair or replacement.