There Is Help Available for Your Sellers When Completing the Seller's Disclosure
Would you agree that the worst part of the listing paperwork for your sellers is completing the Seller's Property Disclosure Statement (SPD)? It's a long and tedious document with some confusing questions and some poorly worded sections. It's no wonder that it is rare to find one that is totally complete. If only there was an easier solution.
There are, in fact, companies that specialize in assisting sellers in completing this disclosure. I gave two of them a test run to see what the process was like. The first was Glide. Glide is a transaction management platform available at glide.com. They offer a free version that does allow you to send the SPD and Lead Paint Disclosure (LPD) to your seller. The paid version has a more comprehensive transaction management program. I set up my home address in Glide and sent the disclosure to myself to get the full experience. The process is very easy. Rather than receiving an 11-page document with tiny writing and thousands of boxes to check, you work through one small section at a time. If you answer a question with a yes, another box opens so that you can write an explanation. If you haven't answered a question, you can't move forward with the next question which prevents a seller from skipping sections.
When every question has been answered, a copy is sent to the listing agent and is available in your Glide portal. It does not automatically allow the seller to initial and sign. You, as the agent, can add initials and signatures to the document within the Glide portal and resend the document to your seller for signature, or you can upload the pdf into your primary signature program. The biggest disappointment with the final document I received is that it is the 2016 version of the SPD instead of the 2021 version. I asked support at Glide if they were planning to update their forms with the latest version. They responded that they were planning to update the PA forms but did not provide a timeline. They did say they would send an email to me when it's been updated. Overall, this program would be easy for any seller with basic computer skills to use.
The second program I tested was Sellers Shield at sellersshield.com. Sellers Shield offers free disclosure completion with optional legal protection that the seller can purchase. It is $199 for one year paid now or $299 paid at closing, $249 for two years now or $349 at closing, or $1,200 for three years now or $1,500 at closing. It includes both the SPD and LPD. I set it up to send myself a disclosure to complete to get the full experience. The process of answering questions is very similar to Glide. It doesn't allow you to continue if you haven't completely answered a question. As a benefit, Sellers Shield has integrated signing after the form is completed so you do not need to add initials and signatures manually. Thankfully it also has the 2021 SPD rather than the 2016 version. There are additional resources available as you complete the form, with definitions and videos to watch for a clearer understanding of the questions. The only drawback or catch is that they try to sell their protection three times during the process of completing the documents. This would require you, as the agent, to prepare your seller for this sales pitch so they understand it is optional and not necessarily something you are endorsing.
I think it is clear that the only option between the two right now is Sellers Shield since Glide is using an outdated form. Once Glide updates the form, it will be a strong option. Glide does not sell any coverage for future lawsuits, but they do provide sobering statistics to put some fear into the seller in hopes of getting them to answer the questions honestly. They state that alleged failure to disclose is the number one cause of home sale lawsuits, and the average dispute costs sellers over $25,000 to resolve. I recommend checking these programs out for yourself. I think your sellers will appreciate the easy process of completing a very cumbersome document.
The opinions expressed in this article are those of the author and do not reflect the opinions or views of LCAR or its members. This is not an endorsement of any product.
