Must Seller Disclose That Home Has LP Siding On It?

Q: Our home has Louisiana Pacific siding. We've never had any problems with it. Now we're trying to sell. When we disclosed to potential buyers that we had LP siding, they backed out of the deal. We're concerned that having this siding means we're going to have to accept a lower sales price. Help!

A: The siding you have is a composite wooden material put together under pressure. On some - but not all - of the LP product, the bonding agent failed, or moisture was able to get below the surface, and the siding warped.

The resulting class action lawsuit culminated in a $275 million settlement to fund current and future claims.

Seattle attorney Matthew Cruz says there are two issues here. The first: Must you disclose to potential buyers that the house has LP siding even though it's been trouble-free? Cruz says yes. "The current standard is to disclose all material adverse defects, and arguably the existence of LP siding, given the number of problems people have had with it, is a material adverse defect."

The next issue is your possible recourse if having this siding negatively affects your home's sales price.

Cruz says that if that happens, you're entitled to submit a claim for compensation under the class action settlement.

To get information on the LP settlement, and how to file a claim, call (800) 245-2722. Cruz also says if the buyers of your home encounter problems with the siding, they, too, can receive compensation (until Jan. 1, 2003). That fact alone might help you sell.

Q: My husband and I want to sell our home and buy another that would be more manageable for us. Our two adult sons, who are single and have moved back in with us, want to buy our house. However we need cash out of the sale for our next purchase, and they're both in the process of paying off debts. How can we handle this sale and purchase in a way that will keep us all as peaceful as we have been?

A: "My general advice when doing family transactions is to treat them more businesslike, rather than less businesslike; that's the way to save families," says attorney Mary Ann Vance.

This means hiring an appraiser to set a fair price, having your sons apply for a home loan, hiring attorneys (for both sides) to draw up and review an earnest-money agreement and other paperwork, and getting title insurance.

Your sons will also need a partnership agreement that spells out how the mortgage, down payment and future improvements will be paid and what happens if one of them dies or wants to sell. Vance realizes this is a lot to swallow.

"The tendency with families is to cut corners, not do documents properly, not get title reports, and that's a big mistake," she cautions, adding that she's recently seen cases where family members, who entered into deals like yours with the best of intentions, ended up suing and evicting other family members.

If it's not possible for your sons to get financing, and you really need to move, Vance says the best thing is to face the fact that this deal isn't for you.

Q: My condo neighbor installed a hot tub on her patio. (There was a vote on it that allowed her to do this, but the vote was not done in accordance with condo rules.) I can hear a constant hum from the hot tub motor. It's not loud, but it's unrelenting, except at night, when she turns it off. Our condo bylaws prohibit "offensive" activities. How do I regain my right to peace and quiet?

A: As an attorney, and also vice president of the state chapter of the Community Associations Institute, a nonprofit condo education organization, Kris Sundberg says he'd first "want to look into the validity of the association's `vote' concerning permission to install the hot tub.

"There's also the question of whether hot tubs are even allowed, and if so, in what parts of the condominium may they be installed." Sundberg says finding the answers would require a review of the condo's governing documents.

"Unless the hot tub was found to be illegal under the governing documents, I'm doubtful that the annoyance, as described, would amount to the level of actionable nuisance under state law," he said.

It also may not rise to the level of "offensive activity' under the association's bylaws.

"As a practical matter," Sundberg counsels, "condominium owners must reasonably expect (and tolerate) some intrusions into their peace and quiet that would ordinarily not happen in the case of individual ownership."

Home Forum answers readers' questions every Sunday in the Home/Real Estate section. Send questions to Home Forum, Seattle Times, P.O. Box 70, Seattle, WA 98111, or call 464-8510 to leave your questions on Home Forum's recorded line. The e-mail address is: erho-new@seatimes.com Sorry, no personal replies.