Tips & Trends for the Flagstaff Real Estate Market:
Past Articles [July 2005]
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You May Need to Get a Clue
Throughout the years there have evolved several safeguards in the real estate industry which are designed to protect buyers who purchase a home. Among them are lead–based paint disclosure, as well as radon and mold testing. Recently a new disclosure has entered the industry. It is called the CLUE report. If you are in the market to buy a home or if you are thinking of selling your current property, you should familiarize yourself with what this means and the effect it may have on your purchase or sale.
CLUE—is an acronym for Comprehensive Loss Underwriting Exchange—it is a national insurance industry database with more than forty million property claims. A CLUE report examines all claims reported to an insurance company for a given property over a five-year period. The report is a guide for the buyer to help verify the seller’s property disclosure statement, as well as well as help a home inspector ensure reported damage has been properly repaired.
The Arizona Association of Realtors Residential Purchase Contract requires that the seller provide the buyer with a CLUE report. In part the contract states: Seller shall deliver to Buyer a written five-year insurance claims history regarding Premises (or a claims history for the length of time Seller has owned the Premise if less than five years) from Seller’s insurance company or an insurance support organization or consumer reporting agency or if unavailable from these sources, from Seller, within five (5) days after Contract acceptance.
If you have owned a property for five or more years and had the same insurance company ask your agent to provide you with a loss history report. To obtain a CLUE report, go on line to www.choicetrust.com. There is no cost for the report but you are required to divulge your social security number to obtain the document.
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