If you are new at home selling or home buying, chances are you have no clue what CLUE is and its significance in selling and buying a house. For those first time homebuyers and newbie home sellers, here is a quick list on what you need to know about CLUE.
What is CLUE?
The Comprehensive Loss Underwriting Exchange (CLUE) is defined as a property’s history database generated by LexisNexis that allows insurance companies to access information on the losses a consumer wants the insurance company to cover. A CLUE report contains dates of previous consumer insurance claims, insurance company/ies involved, and details about the losses endured by the property (i.e. accidents, typhoons) in the last 5-7 years. Insurance companies will need these pieces of information in accomplishing or writing insurance policies for the consumer.
How is CLUE related to real estate?
In real estate, home sellers use their CLUE reports to show realtors, real estate agencies, and prospective homebuyers any records of damages or losses the real estate property went through during the home seller’s occupancy in the house. The information in a CLUE report allows the prospective homebuyer to briefly check the loss history of the house and help him decide in purchasing the property.
Who can get a CLUE report?
Under the Federal Fair Credit Reporting Act, CLUE reports can only be directly accessed or ordered by the property owner and insurance companies. However, the home seller, as a property owner, can order a CLUE report for the real estate he is selling and lend a copy to the realtor and real estate agency. The realtor can then show the property’s CLUE report to a homebuyer.
Where can I get a CLUE report?
If you are a home owner planning to sell your home, you can request a copy of your real estate property’s CLUE report by calling LexisNexis or by visiting their official website. If you are a homebuyer wishing to check a house’s CLUE report, you can ask the realtor and/or the house’s homeowner for the copy. Homebuyers have the right to ask realtors and home owners/home sellers for a CLUE report.
Why is CLUE important?
With a real estate property’s CLUE report, a home seller can prove how well the house is and a homebuyer can see how suitable the house is for living, or if he can get it insured after purchasing it. For example, if the house has a record of having mold, the buyer might find it hard to get insurance for the house.