You read the MLS and it says "REMODELED". It has an amazing price and you call your buyers who get excited and head over to meet you before anyone else has a chance to put an offer in. Now, things get exciting. The house looks amazing, so you put in an offer, it gets accepted and then you order the inspection.
It turns out that remodel was only cosmetic! As the inspector is climbing in and around the kitchen, and the attic above the kitchen, he finds beams burnt through that weren't replaced, and cabinets that still have water damage from the fire department on them. It looks like this family took the insurance money and only covered the damage and kept the rest of the money!
No where does it mention in the disclosures that there has been a fire, heck there is no place to put something like that in the disclosures. But, calling a place remodeled because you tried to burn it down just doesn't cut it for my buyers and me. I think you will find yourself in court so they can get their money back for the inspection that you were wrong not have disclosed this upfront!
Please, if you know something about a house, it is better to disclose it up front than let the buyer find out later and have to take you to court for not disclosing it. 
Todd Clark - broker
Kastings & Associates
Phone: (503)524-9494
Fax: (503)622-8739
Todd Clark and the Friendly Home Team
Knipe Realty
Todd@IFoundYourNewHome.com
Phone: (503)524-9494
Fax: (503)746-9573
I am a licensed Realtor who specializes in Washington County, Oregon and also work in both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard. All information contained in these posts are copyrighted and cannot be used without prior written approval authorization from the author me Todd Clark. If you are looking for an outstanding agent please give me a call I would love to help you with all your real estate needs.
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Todd I couldn't agree more I sold a home that had fire damage however, it was well disclosed and the builder did take the time to replace burnt beams. Ironically the purchaser was a fireman so he was absolutely okay with the purchase and the disclosure.
Todd I absolutely agree with you. The three most important words in real estate today are "disclose, disclose, disclose".
Wow I have never ran into that thankfully. That definitely should have been in the disclosure!
Todd, I also agree with you. Full disclosure will never get you into trouble.
The reason that we have so many lawsuits and 30+ pages of contract are due to sellers like this.
The Sellers often keep things from me and when I question or find out about it they become defensive yet they wouldn't accept the same things if I were showing them something to buy.
Oh yicks....there seem to be a number of things that are left to inspection that aren't asked directly on a condition report...and oh surprise, not volunteered by the sellers....gotta work toward revisions...what about the not so adroit inspector who will MISS those things ?
Todd - This is deplorable behavior, and it's a sad commentary on today's world, frankly. I hope your client gets their money back for that inspection, which was essentially a waste of everyone's time.
Todd, there is a insurance web site, can't remember the name where you can have your buyers go and check all the insurance claims filed on a house. If I remember what it is called I'll come back.
Another reason why you always have inspections, until the inspector crawls around in the attic and basement what do you really know about the house? It looks nice and clean on the surface.
Todd, covering up a former fire is pretty tricky I must admit.
Missy that would be a CLUE report. When you call to get a quote on a new home you they have access to a database that will tell you if they home has any claims against it.
Todd
The term "remodeled" some times is a loaded canon waiting to go off.
Sincerely
Tom Braatz
Todd - we ran into something similar, fire wasn't disclosed, and neither was the fact that there was an insurance claim (large sum). The small area that was damaged in the fire was totally redone and the home looked better than new. Yet, no disclosure, no buyers. ~Rita
These sellers sound as skanky as it gets. I recently sold a home that had a fire. It was disclosed, inspections were done, everything went well. Thankfully your clients had an inspection.
Todd, I always give buyers information on the CLUE report. It is too bad some sellers try to be dishonest.
Todd, That is like running the odometer back on a used car. The disclosure form is made to take care of this type of deception. Make an example out of them Todd for wasting your time and the cost of the inspection...
Todd, kinda takes the trust out of that agent's hands. I would have a hard time showing their listings again.