Watch our YouTube video breaking down Oklahoma's law on disclosing psychologically impacted properties!

The disclosure of psychologically impacted properties often leaves real estate agents in a dilemma. Whether it's a death, a felony, or a disease, understanding the disclosure rules is crucial for sellers, buyers, and real estate agents. Watch the short six minute video in this post for a more thorough explanation of these rules. 

Understanding Psychologically Impacted Properties

Psychologically impacted properties include a range of scenarios, from homicides and suicides to felonies and diseases like HIV/AIDS. It's important to differentiate these from the mandatory property disclosure forms sellers complete, because this is a completely separate disclosure with different considerations.

The Legal Framework

The law sets procedures for disclosing information about psychologically impacted properties. This starts with a written request from buyers, next there is an obligation for the seller's agent to facilitate the request, and then the seller determines how to respond. Keep reading to see if the disclosure is mandatory!

The Disclosure Process

Navigating the disclosure process requires tact and understanding. As a real estate agent, you need to recognize how important this can be for a buyer who cares about psychologically impacted properties. Here's a quick overview of the process:

1. The buyer makes a written requests to the seller to disclose information about psychologically impacted property factors. 
2. The listing agent must "conduct an inquiry" of the seller by submitting the written request to the seller.
3. The seller determines how to respond, and their response could be choosing not to provide any information.
4. The listing agent gives the buyer the results of their inquiry. 

Mandatory vs. Optional Disclosures

Disclosures about psychologically impacted properties are generally not mandatory. The law says psychologically-impacted property factors are "not material." It gives the seller the discretion of how to respond, and a listing agent is not required to do an agent disclosure like you would for defects you know about under the Residential Property Condition Disclosure Act. (But, remember your ethical and legal obligation of honesty!)

Representing Buyer Interests

For agents working with buyers who are interested in psychologically impacted property factors, it's important to understand how to represent their interests effectively. This includes timing inquiries and understanding the implications during the inspection period. A buyer can terminate a contract because they learn about psychologically impacted property factors, but the Oklahoma real estate contract requires it to be done during the inspection period! Understanding this timing is critical to protect your buyer's interests. 

The Role of Real Estate Agents

Real estate agents play a pivotal role in managing disclosures of psychologically impacted properties, and you need to understand your legal obligations, the process for facilitating these requests, and how to best protect your client's interests. 

Conclusion

Disclosing psychologically impacted properties requires a nuanced understanding of legal requirements and ethical considerations. Whether you're a seller, buyer, or real estate agent, being informed about these disclosure rules is crucial. Watch the brief six minute video in this post for a more thorough understanding of disclosures for psychologically impacted properties!