Did you know that a staggering 80% to 90% of all real estate lawsuits stem from a seller's failure to disclose material facts about a property? In this crucial episode of Ask the Hawaii Team, Dan Polimino from KW Big Island explains why trying to hide minor past issues—like small leaks or termite damage—is a recipe for legal disaster. Even if you completely repaired, remedied, and spot-treated the issue years ago, omitting it from your seller property disclosure statement can expose you to massive financial liability.
Whether you are listing a luxury Waikoloa Beach condo, a property in Mauna Lani, or a residential home anywhere on the Big Island, the golden rule of real estate remains unchanged: disclose, disclose, disclose. Dan Polimino draws on his extensive experience as a brokerage firm owner to break down the two primary reasons transactions end up in front of real estate attorneys: nondisclosure of defects (such as minor water damage on a lanai, structural issues, or plumbing leaks) and a dangerous lack of professional buyer or seller representation. Learn how overdisclosing protects your assets, keeps your transaction secure, and guarantees a smooth escrow process.
Video Chapters (Time-Stamped) 0:00 Do I Need to Disclose Past Damage If It’s Already Fixed? 0:13 The Golden Rule of Real Estate: Disclose, Disclose, Disclose 0:35 Overdisclosing: Advice from Top Real Estate Attorneys 1:10 The Shocking Statistics Behind Real Estate Lawsuits 1:31 The #1 Cause of Property Litigation: Failure to Disclose 1:41 The #2 Cause of Litigation: Unrepresented Transactions 1:51 From Water Damage to Termites: What You Must Reveal 2:01 Protect Your Asset & Your Escrow
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Video Summary
AI Generated
Dan Palomino explains that homeowners selling property, specifically in the Waikoloa beach area, must disclose all material facts about their home. Even if issues like termite or water damage have been fully repaired, they must still be reported to the buyer to avoid potential legal disputes.
Dan, I've had some minor termite damage and a little water damage out on my lanai.
I had it all fixed, but do I need to disclose that if I'm selling my Waikoloa beach condo?
I'll tell you coming up next.
Yeah, there's an old saying in real estate.
It goes disclose, disclose, disclose.
Hey everyone, Dan Palomino from the Hawaii Team and KW Big Island.
The question came in to us this week on Ask the Hawaii Team.
I had some minor termite damage on my lanai and some minor water damage.
Do I need to disclose that when selling my Waikoloa beach condo?
The answer is absolutely.
You got to disclose any material fact about your property that you know,
even if you had it fixed and remedied.
You just say that.
You said had minor termite damage in 2022, had pest control come out, spot treat it,
no further signs of termites, something to that effect.
You know, an attorney told me a long time ago, you'll never ever,
ever go wrong in real estate when you're in a transaction by over disclosing.
Like you can't disclose too much.
Don't leave anything out.
And I'm sure if you contacted a real estate attorney, they would tell you
that the majority of real estate lawsuits, I'd probably say 80, 90%.
Because I used to sit in in these meetings with attorneys as being an owner of a brokerage
where agents were in trouble.
And almost all of the lawsuits we discussed always involved two things.
Number one, a seller's failure to disclose.
That was number one lawsuit by far.
Number two, closely behind was one party in the transaction was not represented.
And that usually goes badly.
That's why I'm always talking about having representation.
So the answer is yes, you've got to disclose it all.
Water damage, termite, cracked window, small leak at the toilet, whatever the case may be.
Disclose, disclose, disclose, and you will not go wrong.
Hope I've answered your question.
If you have more, you can contact me on my cell phone.
808-987-3306.
Or check us out at thehawaiiteam.com.
And until we talk again, aloha.
