In the News

Buyer’s Remorse – Waiving Inspections During the Home Purchase Process

By Frank Manzano

Did you purchase a home during the pandemic? If you did, you surely remember how crazy the housing market was during that time. With infinitely more buyers than sellers, those who sought homes likely bid on multiple properties – and those bids were rejected for various reasons.

Therefore, simple Economics 101 dictates that when there is more demand than supply, prices rise. Home prices increased exponentially during this time. Buyers quickly realized that drastic action was needed to purchase a home. Buyers wrote personal letters to sellers, essentially begging the sellers to sell their home to them.  However, the most common measure undertaken by buyers at that time was to waive inspections prior to purchase. Most real estate agents advised their clients to do this to improve their chances of purchasing a home in a hyper-competitive real estate market.

Simply put, buyers who waived inspections lost the right to have the home inspected prior to purchase for the purpose of discovering any issues at the property. A home inspection, while not perfect (it generally can’t uncover hidden issues, or those invisible at the time of inspection) does provide some level of comfort for buyers. A qualified reputable home inspector should be able to detect visible defects or deficiencies. Home inspectors should be able to determine the life expectancy or key components of the home, in addition to determining if these components are operational at the time of inspection. By way of example, the inspector should be able to determine how old a roof is and how long before it will need to be replaced. The inspector should also be able to determine the age and life expectancy of the HVAC system, and if the system is operational. Additionally, the inspector should be able to spot visible termite damage.

In the quest to purchase a home, buyers who waive the security of having a home inspection miss out on the opportunity to learn of visible defects and deficiencies prior to purchase. Inspections allow buyers the opportunity to back out of purchases or negotiate a reduced sale price with the sellers. In exchange for waiving inspections, buyers hope to be more “attractive” to sellers in hopes that their bid would stand out from the other bids and be accepted by the sellers.

If buyers are lucky, their bid will be accepted, and they will eventually purchase the home they wanted. In some instances, this works out well for the buyer. The buyer moves into the house, and everything works out fine. They have no problems or issues with their new home; the roof is in good condition, the HVAC system works properly, and the plumbing is in order.

However, others are not so lucky. They move in and become aware of a plethora of defects and deficiencies. Now what? You realize that you waived the inspections, but does that mean that you have no legal recourse? In some cases, you may have no legal recourse. However, in others, you may have legal recourse.

Even if a buyer waives inspections, they may have legal recourse under the Pennsylvania Real Estate Disclosure Law (“RESDL”). The RESDL applies to most real estate transfers and requires sellers them to disclose the property’s known “material defects with the property known to the seller” to potential buyers. This is typically done through the Seller’s Property Disclosure Statement (“Disclosure Statement”), which is commonly used by most realtors. The seller is not required to undertake an exhaustive investigation to search for unknown defects and deficiencies; however, the seller must be truthful in completing the Disclosure Statement and cannot fail to disclose a known defect or deficiency.

The housing market was extremely competitive during the pandemic, from 2020, through 2021, and into 2022.  Many people who purchased homes during this timeframe and waived inspections may have already become aware of defects and deficiencies since their purchase. In some instances, the buyers sunk all of their income into the purchase of their home and they may not have the income to make repairs, especially extensive and expensive repairs.

So, are you or someone you know experiencing a situation similar to what is described here, and wondering what to do? First, identify all defects and deficiencies and obtain estimates that set forth the costs to remediate the same. After you have obtained your estimates, you should contact an attorney experienced in real estate matters to evaluate your case and determine if you have valid claims and causes of action against the seller.

An experienced real estate attorney will review all of the transaction documents, but most importantly the Disclosure Statement. The litmus test for a known defect or deficiency is whether the buyer had knowledge of a defect or deficiency and failed to disclose the same within the Disclosure Statement. There are various ways to show that a seller was aware of a defect or deficiency at the time of the sale.

One simple example involves water infiltration. Let’s assume that a buyer begins to experience water infiltration after moving into the new home. The seller then hires a contractor to evaluate the extent of the water infiltration. The contractor may discover evidence of prior repairs which were made because of water infiltration. In this instance, the seller would have been required, under Pennsylvania law, to disclose the prior water infiltration. Failing to do so would be improper.

Other ways in which a buyer can determine that a seller failed to make a material disclosure would involve the discovery process if a lawsuit were filed and litigation commenced. Often, a seller and their real estate agent will have email discussions concerning the Disclosure Statement and what should be included. Correspondence in this regard would be discoverable in litigation.

Please note and remember that you have four years from the closing date of your home purchase to commence litigation against a seller for violating the RESDL. You should contact an experience real estate attorney immediately if you purchased your home in 2020 or 2021 and believe that you have claims against the seller of your home. Your claims, if any, are time-barred once the applicable statute of limitations expires.

institutional investors and private equity firms buying single-family homes

Every American has felt the bite of inflation. Everything seems to cost a little more these days - higher grocery bills, gas prices, and huge spikes in rent. But WHY is it that rents are rising so much?

The influx of institutional investors and private equity firms buying single-family homes has undoubtedly changed the residential real estate market, and this problem has been developing for years.

The global financial crisis of 2008 forced many homeowners to sell due to unaffordable mortgages. This flood of homes into the market caused the single-family housing sector to crash, contributing to 8 million foreclosures from 2007 to 2016. Consequently, the real estate market’s shift impacted annual new home construction, resulting in the fewest single-family homes built in the 2010s compared to any decade since the 1960s.

Even after the US economy rebounded, housing construction – critical for adding supply to the market – never fully recovered due to enduring investor trauma from the crisis, further exacerbating the shortage dilemma. To help stop the falling home prices, the government provided private equity firms with funding to enter the market and buy these single-family homes. The intended short-term fix led to the single-family rental market we are navigating today.

The COVID-19 pandemic further fueled changes reshaping Americans’ preferences, prompting consumers to flock to Sunbelt cities with more space, better weather, and lower taxes. However, in a high-interest rate environment, many potential buyers find homeownership unaffordable. As a result, private equity firms take advantage of the opportunity by aggressively outbidding buyers with all-cash offers and waiving inspections with the objective of adding hundreds of houses per month to their portfolios.  

There are over twenty-four single-family home rental companies, including five of the most active buyers: Progress Residential, Blackstone, American Homes 4 Rent, Tricon Residential, and Invitation Homes. These corporations are either owned or funded by Wall Street firms including Blackstone, JP Morgan, and Goldman Sachs, enabling large-scale purchases.

Although institutional investors currently comprise only a small percentage of the total single-family rental market, this is projected to rise to more than 40% of all rentals on the market or 7.6 million homes by 2030, according to MetLife’s Investment Forecast. The shifting trend has impacted the affordability and availability of single-family homes for first-time buyers, replacing traditional prospective homeowners with corporate landlords.

One of the primary concerns is the impact on housing affordability. As these entities purchase large volumes of homes - particularly in areas like the Sunbelt region, with high demand and limited supply - they often outcompete individual homebuyers with access to fewer resources. This competition increases home prices and reduces the affordability of homeownership. In fact, rent growth in cities targeted by institutional investors has significantly outpaced income growth.

Moreover, institutional investors usually focus on properties with the potential to be renovated and flipped for quick profit or rented out for continuous income streams. This profit-driven approach to property acquisition further diminishes the availability of affordable housing stock, as “starter homes” that could be bought by first-time homebuyers are instead being converted into rental properties or refurbished for resale at higher prices. Also, the focus on maximized returns vs. quality housing for tenants can lead to concerns about maintenance standards, rent increases, and overall tenant rights.

Beyond immediate market effects, the dominance of institutional investors and private equity in residential real estate can have long-term consequences for communities. Homeownership has been one of the main methods of wealth accumulation for many families, providing stability and a pathway to financial security. However, as ownership moves from individuals to institutional investors, the societal benefits that accompany widespread homeownership may subside.

Furthermore, social cohesion and engagement within communities may diminish when a significant portion of their housing stock is owned by absentee landlords or distant corporate entities. Local economic impacts may also be influenced by the investment strategies of these non-local investors, such as property tax revenues and neighborhood development.

On the other hand, the entry of institutional investors and private equity firms into the residential real estate market may offer opportunities for profit and portfolio diversification. Additionally, the role of institutional investors may reduce vacancies and streamline purchase and sale processes. However, the significant concerns raised regarding housing affordability, market fairness, and community well-being significantly outweigh the potential benefits. 

Addressing the challenges posed by institutional investors and private equity in the single-family rental market requires government involvement and careful consideration of policy interventions. Regulatory measures are needed to protect aspiring homeowners and ensure a fair housing market. These may include restrictions on large-scale purchases of homes, incentives for affordable housing development, and changes in property management to increase oversight of rental properties. Another potential restorative solution in rebalancing the market dynamics in favor of individuals may be by promoting homeownership through targeted subsidies or loan programs.

The growing presence of institutional investors and private equity in residential real estate has significant implications for both the housing market and consumers. Moving forward, policymakers and stakeholders must work together to ensure that the benefits of a vibrant real estate market are shared equitably among all participants while safeguarding the interests of consumers and promoting sustainable community development.


Philadelphia Residential Real Estate Market: Spring 2024 and Beyond

Scott Reidenbach spoke with 6 abc’s nydia han about the recent nar settlement and what it will mean for the future of residential real estate and associated realtor commissions.

Scott Reidenbach Named 2023 Power Player by The pennsylvania legal awards

 

Scott Reidenbach speaks with nbc 10 news about the spring real estate market - and how buyers and sellers may save money when working with realtors

Scott Reidenbach to present in dallas, tx at the national cai annual conference

 

Scott Reidenbach speaks with NBC 10 News' Randy Gyllenhaal about rising interest rates and the current state of the real estate market.

Reidenbach attorneys named 2022 top lawyers

Founding Principal Scott Reidenbach was named #1 Top Lawyer in Real Estate by Main Line Today for the eleventh time!

Congratulations to attorney Rob Shulman, also named a Top Lawyer in Real Estate.

 

Scott Reidenbach on NBC 10

Scott Reidenbach spoke with NBC 10’s Randy Gyllenhaal last Thursday and addressed the real estate question we’re all asking – “When Will the Bubble Burst?”


Scott Reidenbach Featured on NBC 10’s @Issue

Founding Principal Scott Reidenbach appeared on NBC 10’s @Issue to Address Community Living and COVID Vaccine Requirements.


SCOTT REIDENBACH NAMED “#1 TOP LAWYER” BY MAIN LINE TODAY

MLT Graphic-01.png

Rob Shulman Offers Tips for Mortgage & Rent Relief on 6 ABC

Moratoriums on evictions and foreclosures are scheduled to end this month, but there are things both homeowners and renters can do to get more financial assistance. Our very own Rob Shulman offers tips on getting additional rent and mortgage relief in the upcoming months on 6 ABC.

Reidenbach & Associates named Top Lawyers in Philadelphia by Expertise

Expertise scored 717 Real Estate Lawyers in Philadelphia, PA and included Reidenbach & Associates in the top 35 law firms for 2020.


SCOTT REIDENBACH WEIGHS IN ON HOW BUSINESSES CAN SAFELY REOPEN AMIDST THE PANDEMIC WITH NBC 10’S RANDY GYLLENHAAL


Scott Reidenbach speaks to monthly payment options during the Pandemic with NBC 10’s Randy Gyllenhaal


Scott Reidenbach DISCUSSES RENT AND MORTGAGE OPTIONS DURING THE PANDEMIC WITH CBS PHILLY’S ALEX HOFF


Lida Bonner speaks to the 2020 delaware tax assessments on NBC 10’s @Issue


Reidenbach & Associates ATtorneys Named “best Lawyers” by Main Line today

UPDATED RA MLT Top Lawyer Graphic.png
FINAL RA MLT Top Lawyer Graphic (1).png

Scott Reidenbach, Lida Bonner and Rob Shulman were named 2019 “Best Lawyers, Real Estate” by Main Line Today.


Scott Reidenbach Discusses Short-Term Rentals on the Community Matters Podcast

Scott Reidenbach was a featured guest on the Community Associations Institute's Community Matters podcast. Listen to the full episode here:https://www.cai-padelval.org/podcast-managing-the-impact-o…/

Scott Reidenbach was a featured guest on the Community Associations Institute's Community Matters podcast. Listen to the full episode here:

https://www.cai-padelval.org/podcast-managing-the-impact-o…/


Scott Reidenbach on CNBC

Untitled design (30).png

Scott Reidenbach spoke with CNBC regarding how to book smart and stay safe in today’s Airbnb-centric world. Click link below to read the full story.

“Four questions to ask before you rent that Airbnb”


Reidenbach & Associates Named a Top Law Firm in Philadelphia by Expertise.com

Screen Shot 2019-04-15 at 9.12.22 AM.png

Expertise.com looked at 351 real estate law firms serving the Philadelphia area and picked the top 19. In order to determine the top firms, Expertise.com looked at reputation, credibility, experience, availability and professionalism.


Scott Reidenbach discusses Recent Building Collapses with NBC 10 Philly's Randy Gyllenhaal 

Scott Reidenbach was featured on NBC 10 Philadelphia discussing the recent building collapses in Philadelphia. Learn more about what officials are doing to regulate contractors


Scott Reidenbach's interview on CBS 3 Philly with Alex hoff

For college students, a new school year means endless possibilities - especially for those moving off campus. And while it is an exciting stepping stone for young adults, it comes with significant responsibilities and risks. Our very own Scott Reidenbach breaks down how to protect your child and your assets when signing an off-campus lease for CBS 3 Philly's Alex Hoff. 


Reidenbach and Associates Overview Video

We’re excited to share a glimpse of what it’s like inside Reidenbach & Associates. We’re proud to be The Law Firm of the Main Line.


Scott Reidenbach named 2018 Influencer of law by the Philadelphia Inquirer

Scott Reidenbach was one of 25 award recipients in the inaugural Influencers of Law program and celebrated with fellow honorees at a reception on Wednesday, July 11.  

Reidenbach-InquirerLawAwards-Email-1.jpg

Attorney Neil Hilkert Delivers National CLE Webinar

Reidenbach & Associates’ Neil M. Hilkert Esq. recently traveled to Wisconsin to the National Business Institute (NBI) to film a CLE (continuing legal education) webinar, titled “Real Estate Closings from Start to Finish.” Mr. Hilkert was invited by NBI to participate on the panel in presenting the program. Attorneys from around the country will be able to access the webinar on December 18, 2017 from 11:00 a.m. to 6:00 p.m. eastern standard time. The real estate topics discussed in the webinar is a practice area emphasized by the Reidenbach firm in Pennsylvania and New Jersey. Neil and the other panel members will be available for questions at the conclusion of the webinar on Monday.

Learn more about the course and registration here. 

Hilkert CLE Screenshot 1.png

“Don’t Set Aside good practice when dealing with reserves,” an article by Rob Shulman in the Community Association' Institute’s magazine

R&A attorney Rob Shulman recently contributed an article to the Community Association Institute’s magazine, Community Assets, titled “Don’t Set Aside Good Practice When Dealing with Reserves.” In it, Rob includes a legal overview of HOA’s responsibility regarding reserves and what is required in the state of Pennsylvania.


CAI 1.png
CAI 2.png

Scott Reidenbach Featured on Peter Greenberg Worldwide

Scott Reidenbach was interviewed by CBS Travel Expert Peter Greenberg on his national travel show, Peter Greenberg Worldwide. Peter and Scott discussed the issues that renters may encounter using sites like HomeAway and VRBO – and what kind of recourse renters have if problems arise.

Click here to listen to the full interview at the 57-minute mark. 

Peter Greenberg Logo.jpg

Scott Reidenbach on CAI's Podcast, Community Matters

CAI (Community Associations Institute) recently welcomed Scott Reidenbach as a guest on their podcast, Community Matters. 

In this episode, Scott talked pot – that is, the legal kind. Medical Marijuana is becoming legal in more and more states and in some, so is recreational marijuana. Community associations have long dealt with the issue of cigarette and other types of smoking, but does medical marijuana require new ways of thinking for community association managers and elected leaders?


Scott Reidenbach Interviewed by 6 ABC's Nydia Han

Scott Reidenbach was interviewed by consumer reporter Nydia Han and answered questions regarding how to protect yourself when using vacation rental sites like HomeAway and VRBO. 


Reidenbach & Associates Celebrates 10 Years

Did you hear the news? Reidenbach & Associates is officially 10! At the end of July, we celebrated the milestone with clients, friends and family. Thanks to those of you who braved the high temps to come out and celebrate over barbeque, sno-cones, cocktails and games galore. We wouldn’t be here without supporters like you. We are grateful to do what we love and for our fantastic clients, and we are looking forward to the next 10 years!

Team gathers for a celebratory toast prior to the 10th Anniversary BBQ celebration

Team gathers for a celebratory toast prior to the 10th Anniversary BBQ celebration


Three Reidenbach & Associates Attorneys Named Top Lawyers by Main Line Today

We are honored to announce that three of Reidenbach & Associates’ team members have been named Top Lawyers by Main Line Today magazine! Scott Reidenbach has once again been named the #1 Real Estate Lawyer on the Main Line, and team members Lida Bonner and Rob Shulman have also been named 2017 Top Lawyers. The list is determined by votes from colleagues – the ultimate compliment and sign of esteem in the legal field. Congrats to Scott, Lida and Rob – and thank you to our fellow attorneys who voted!

MLT Top Lawyer 2017.jpg

Scott Reidenbach in "Cautionary Tale of the Toxic Home"

Congrats to Scott Reidenbach who is quoted in "Cautionary Tale of the Toxic Home," which offers tips on how to avoid disasters when buying a new house. Read the full article here.


A Warm Welcome to Jon Rosan! 

Reidenbach & Associates, LLC is pleased to announce the hire of seasoned attorney Jonathan Rosan.

Of Counsel at Reidenbach & Associates, Mr. Rosan possesses nearly 20 years of experience as General Counsel for venture capital and private equity-backed start-up and emerging growth companies. He regularly works with executive leadership teams to reduce corporate risk without negatively impacting company revenue and profitability. Mr. Rosan possesses a wide breadth of industry experience including consumer products, digital marketing, entertainment, financial services, and health care.

Specific areas of Rosan’s expertise include commercial transactions, corporate compliance, corporate governance, data and information licensing, dispute resolution, employment, mergers and acquisitions, privacy and data security, risk management, sales, revenue and business development agreements, software licensing, trademarks, and vendor management.

Prior to joining Reidenbach & Associates, Rosan served as General Counsel of Swift Capital, a leading provider of financing to small and mid-sized businesses. Before Swift Capital, Mr. Rosan was the Senior Vice President, General Counsel and Secretary for Symphony Health Solutions, a leading provider of health care data, analytics and consulting services to the pharmaceutical and biotechnology industries. 

Over the years, Rosan has also held senior legal positions at Moody’s and the Publicis Groupe. Mr. Rosan began his legal career at Drinker Biddle & Reath, and received both his undergraduate and law degrees from the University of Pennsylvania.

Scott Reidenbach, founding principal of Reidenbach & Associates, shares, “We’re thrilled to have Jon on board. His demeanor, track record and deep understanding of the law make him a great fit. The continued growth of our team means more diverse legal expertise available to our clients.”


"Having a Baby?" An article by Scott Reidenbach in the Bb Magazine

Beauty Batallion SR.jpg

Scott Reidenbach is featured as a guest contributor in the April edition of Beauty Batallion magazine. In "Having a Baby?" Scott advises new parents on some of the most important things that need to be done soon after bringing home a bundle of joy. You can see the article online at www.thebbmag.com (page 14) or in the image above.


Scott Reidenbach’s guest entry in elevated nation

Reidenbach & Associates' Founding Principal composed a guest entry for Elevated Nation, a blog focused on news related to the cannabis industry, titled "Medical Marijuana’s Impact on Condo and Homeowner Associations." Read the full article here. 


Reidenbach & Associates named one of the “Best Real Estate Law Firms in Philadelphia - 2017” by Expertise.com

Expertise.com featured Reidenbach & Associates in "Best Real Estate Law Firms in Philadelphia - 2017." Site editors looked at 351 real estate law firms in Philadelphia and picked the top 19. The selection process was based on 25 variables across five categories - reputation, credibility, experience, availability and professionalism. We are honored to be included and are in good company!


Scott Reidenbach invited as panelist at “Issues in Aging: Planning for the Future.”

L to R: Scott Reidenbach, Christine Karas, Jody Guokas Kuntz, Peri Higgins, Richard Craft

L to R: Scott Reidenbach, Christine Karas, Jody Guokas Kuntz, Peri Higgins, Richard Craft

On March 9th, two Main Line-based businesses collaborated to host over forty guests for a luncheon and panel discussion at Overbrook Golf Club titled, “Issues in Aging: Planning for the Future.” Wayne-based Reidenbach & Associates LLC, a law firm that specializes in estate planning and real estate, joined forces with LumaCare, a women-owned business which specializes in in-home care for seniors. Together, they delved into the myriad of options seniors now have in regards to aging and home health care.

The panel discussion featured Scott Reidenbach, founding principal of Reidenbach & Associates, LumaCare founding partners Peri Higgins, Jody Guokas Kuntz and Christine Karas, and Richard Craft, CEO of Berwyn-based Wealth Advisory Group, Inc.  

The panelists addressed questions pertaining to “Aging in Place”, the impact of in-law apartments on home values, and how to broach difficult conversations with family members. They also demystified long-term care insurance and whether parents should consider adding children’s names to the deeds of their homes.

LumaCare was borne out of necessity when Ms. Higgins – like many baby boomers – needed help caring for her father and realized how difficult it was to find a trusted, qualified caregiver. Today, LumaCare assists families in finding carefully vetted, well-matched, compassionate caregivers who help with everything from meal prep, doctor’s visits and even family vacations.

Reidenbach & Associates LLC provides high-level estate planning services and works with clients to draft wills and estate planning documents. The firm specializes in real estate as well and is well-versed in buying, selling and modifying homes.

small invite luma care.jpg

Reidenbach & Associates and LumaCare invite you to attend a luncheon and panel discussion on Thursday, March 9th at the Overbrook Golf Club, “Issues in Aging: Planning for the Future.” Topics we’ll address include details of long-term care insurance, “aging in place,” the importance of clear wills, and estate planning and the protection of assets.

Please be our guest for this interactive discussion. To RSVP or with questions, please email Sarah Domin at Sarah@reidenbachlaw.com.


Scott Reidenbach presenting his annual “Life Skills” session at Villanova University

November 29, 2016

November 29, 2016

Scott Reidenbach delivered his 15th annual “Life Skills” presentation to the freshman student-athletes from each of the 24 sports programs at his alma mater, Villanova University. Scott knows first-hand about the honor of being a Villanova student-athlete – he played on the baseball team during his four years as an undergraduate.

Each fall, Villanova coordinates a series of “Life Skills” presentations for freshman student-athletes, intended to encourage positive decision making and a healthy balance of academics and athletics. During his hour-long presentation, Scott acknowledged that newfound freedom comes with increased responsibility and each student must be accountable for their actions. With humor sprinkled throughout each topic, Scott touched upon issues the athletes may encounter as undergrads, including alcohol and drinking underage, DUI, disorderly conduct, fake ID, date rape and sexual assault – and explained the associated legal, financial and academic consequences.