Abstract
Information provided by real estate brokers is important in advancing consumer protection in connection with real estate purchase contracts for resale housing.
In this regard, identical legal requirements to inspect the property being sold and to explain physical defects existing in such property to the buyer are provided under the Building lots and Buildings Transaction Business Act and the Civil Law. Under these laws, the real estate broker has no obligation to inspect the property to determine whether any physical defects exist, but is required to explain any physical defects that are known to the broker.
If home inspection becomes more prevalent, disputes regarding physical defects in resale transactions should decrease, and, as a result, resale properties would be better utilized. In order for the use of home inspection to increase, the Building lots and Buildings Transaction Business Act should require that real estate brokers disclose to potential buyers the fact that home inspection is being conducted on the property being sold.
