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margy - July 11th, 2007 6:35 PM

when you purchase an reo you get a special warranty deed from the bank which only guarantees the time the bank repossessed the property where as when you purchase a regular home you get a general warranty deed. My question: when I re-sell a home that I purchased as an reo, what type of deed do I give the buyer? A special warranty deed or a general warranty deed?


Martin - September 6th, 2007 3:03 PM

See Hill v. Jones, 151 Ariz. 81, 725 P.2d 1115 (1986).

Generally, A vendor has an affirmative duty to disclose material facts when: (1) Disclosure is necessary to prevent a previous assertion from being a misrepresentation or from being fraudulent or material; (2) Disclosure would correct a mistake of the other party as to a basic assumption on which that party is making the contract and if nondisclosure amounts to a failure to act in good faith and in accordance with reasonable standards of fair dealing; (3) Disclosure would correct a mistake of the other party as to the contents or effect of a writing, evidencing or embodying an agreement in whole or in part; (4) The other person is entitled to know the fact because of a relationship of trust and confidence between them.

Hope this helps!


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