Georgia's Seller Property Disclosure Law requires:
Audio Lesson
Duration: 2:13
Question & Answer
Review the question and all answer choices
Professional home inspection
Option A is incorrect because Georgia law does not require a professional home inspection. While inspections are common practice, they are not mandated by the Seller Property Disclosure Law. Sellers must disclose known defects, not arrange for inspections.
Disclosure of known material defects
Home warranty provision
Option C is incorrect because Georgia's Seller Property Disclosure Law does not require a home warranty provision. Home warranties are optional and may be offered as a marketing tool or negotiated in the contract, but they are not a legal requirement under disclosure laws.
Disclosure of all past owners
Option D is incorrect because sellers are not required to disclose all past owners of the property. The disclosure law focuses on physical conditions and known defects of the property itself, not the property's ownership history.
Why is this correct?
Option B is correct because Georgia's Seller Property Disclosure Law specifically mandates that sellers disclose known material defects affecting the property. This is the statutory requirement designed to provide buyers with essential information about the property's condition before purchase.
Deep Analysis
AI-powered in-depth explanation of this concept
This question tests your understanding of Georgia's Seller Property Disclosure Law, which is fundamental to real estate transactions in the state. Disclosure requirements protect both buyers and sellers by ensuring transparency about property conditions. The question specifically asks about what Georgia's law requires from sellers. Option B correctly identifies the core requirement: disclosure of known material defects. This concept matters because failure to disclose can lead to legal disputes, contract rescission, and even lawsuits. The question is straightforward but tests whether you understand the distinction between what's required by law versus what might be common practice but not legally mandated. In real estate practice, agents must know these requirements to guide their clients properly and avoid liability. This concept connects to broader real estate principles of agency relationships, due diligence, and risk management in transactions.
Knowledge Background
Essential context and foundational knowledge
Seller disclosure laws exist in all 50 states to address information asymmetry in real estate transactions. Georgia's Seller Property Disclosure Law requires sellers to provide written disclosure of known material defects that could affect the property's value or desirability. This law helps buyers make informed decisions and reduces the risk of post-purchase disputes. Material defects are those that would significantly affect a property's value or that a reasonable buyer would want to know about. The law applies to residential properties of 1-4 units and typically requires disclosure of issues like structural problems, water intrusion, HVAC systems, and environmental hazards. Sellers must sign the disclosure statement, and failure to disclose can result in legal consequences.
KMD - Known Material Defects
Remember that Georgia's disclosure law requires sellers to disclose Known Material Defects. Think 'KMD' as the core requirement - anything else is extra, not mandatory.
When questions ask about disclosure requirements, focus on 'known material defects' as the correct answer. Remember that inspections and warranties are separate requirements, not mandated by disclosure laws.
Real World Application
How this concept applies in actual real estate practice
Sarah is listing a 15-year-old home in Atlanta. During a showing, she notices water stains in the ceiling of the basement. Although she hasn't had a professional inspection, she knows from previous leaks that the roof has some issues. Under Georgia law, Sarah must disclose these known material defects in the Seller Property Disclosure Statement. If she fails to disclose these issues and the buyer discovers them after closing, the buyer could potentially sue for nondisclosure, rescind the contract, or seek damages. Sarah's listing agent must ensure she completes the disclosure form accurately to protect both parties.
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