BIC TIP #1283: The Neighbor Has a Bad Attitude

“My neighbor has a bad attitude and really does not like me.” In this BIC TIP, Stephen Long answers a question that comes up all the time: if a seller is moving because the neighbor is a jerk, does the listing agent have to tell buyers? Generally, a disgruntled neighbor is not a material fact. But a disgruntled neighbor making claims about the property might be.

A Bad Attitude Is Not a Defect

Sellers move for all kinds of reasons, and sometimes the reason is simply that they do not get along with the folks next door. Personality conflicts, grumpy waves, and frosty silence over the fence line are part of life.

A neighbor who is unpleasant is generally not a material fact. It is not something the listing agent would have to disclose to a potential buyer on its own. After all, the next owner might get along with that neighbor just fine.

When the Neighbor Brings Red Flags

The picture changes when the neighbor’s complaints involve the property itself. Stephen points to things like boundary disputes, easements, or encroachments.

If a neighbor is claiming the fence is on their land, that the driveway crosses their lot, or that they have a right to access the property, those claims could affect the property. Those are the types of things a buyer should be warned about, even if nobody is sure yet whether the claims are true.

Flush It Out Before Closing

When a neighbor raises a claim like that, it is a signal that the seller, the listing agent, the buyer’s agent, and the buyer may need to do some additional due diligence. A survey, a title review, or a conversation with a real estate attorney can help sort out what is real and what is noise.

The goal is to identify and resolve any issues prior to closing, instead of handing a new owner a dispute they never saw coming.

The Practical Takeaway

Separate the personality from the property. A disgruntled neighbor is not so material. A disgruntled neighbor with claims about boundaries, easements, or encroachments could, in fact, be material.

When in doubt about whether something rises to the level of a material fact, check with your broker-in-charge before you decide to stay quiet.