Under the Alabama Seller Disclosure Act, all of the following transactions are exempt from the written seller disclosure requirement EXCEPT:
Correct Answer
A) A sale of a previously occupied home listed on the open market by the owner
The Alabama Seller Disclosure Act (Code of Alabama §6-9-142 and AREC Rule 790-X-3-.09) requires sellers of previously occupied residential property sold on the open market to complete the written disclosure form. This is the standard transaction the Act was designed to regulate. The seller has lived in or owned the property and is presumed to have knowledge of its condition. Therefore, option B is NOT exempt — it is the transaction that triggers the disclosure requirement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Many states and localities have fair housing laws that expand upon the protections offered by the federal Fair Housing Act.
A stigmatized property is one that has an undesirable reputation due to events that occurred on the property or nearby, such as a murder, suicide, alleged haunting, or proximity to a registered sex offender. The stigma is psychological, not physical.
An as-is clause in a real estate contract states that the buyer accepts the property in its current condition without requiring the seller to make any repairs. However, an as-is sale does NOT eliminate the seller's obligation to disclose known defects.
More Mandated Disclosures Questions
A buyer asks a Georgia licensee to interpret a FEMA flood zone map and determine whether the property is at risk of flooding. The licensee has no specialized training in flood mapping or hydrology. How should the licensee handle this request?
A buyer's agent discovers through public records that the property his client is under contract to purchase was built on a former landfill site that was remediated to EPA standards 15 years ago. The seller's disclosure form makes no mention of this history. What is the buyer's agent's primary obligation?
Federal law requires sellers and landlords to disclose known lead-based paint hazards in residential properties built before what year?
A Georgia licensee is preparing disclosures for a townhome sale. The property is located in an area where flood maps have recently been updated, the seller previously experienced minor water intrusion but considers it resolved, and certain environmental conditions are documented in public records. Which statement best describes the licensee's disclosure obligations?
Buyer's agent Mark discovers through public records that the property his clients want to purchase has an active code violation for an unpermitted addition. The listing doesn't mention this violation. What should Mark do under Georgia disclosure and representation requirements?
- → A buyer's agent is aware that a property sits in a FEMA-designated flood zone based on publicly available flood maps. The seller's disclosure form does not mention flooding. When the buyer asks the agent about potential flood risk, which approach best reflects the licensee's duty under Georgia law?
- → Seller Mike believes that failing to disclose a death on his property could result in the buyer suing him later. His agent tells him that Georgia law requires disclosure of all deaths to avoid future liability. Is this advice correct?
- → A buyer asks a Georgia licensee whether any registered sex offenders live near a property listed for sale. Under O.C.G.A. § 44-1-16, how should the licensee handle this inquiry?
- → A seller's listing agent is asked whether claims that a property is haunted need to be included in the seller's disclosures. Under Georgia's stigmatized property statute, what is the correct guidance?
- → Agent must disclose all EXCEPT:
- → A Georgia licensee is preparing a seller's property disclosure for a residential listing. The seller mentions that a registered sex offender lives two doors away. Under O.C.G.A. § 44-1-16, how should this information be treated in the disclosure process?
- → A listing agent is asked by a buyer's agent about whether a property was previously used for illegal drug manufacturing. The activity ceased three years ago under a prior owner, and the current owner has had no incidents. Under Georgia law, what is the listing agent's disclosure obligation regarding this prior criminal activity?
- → A buyer's agent in Georgia is asked by a client whether the seller is required to disclose sex-offender registry information as part of the property-condition disclosure. Considering the scope and purpose of O.C.G.A. § 44-1-16, which of the following statements is correct?
- → In Vermont, a client refuses to allow a disclosure the licensee believes is necessary. Which statement is correct?
- → Licensee David represents a seller whose property was the site of a suicide two years ago. A potential buyer directly asks David if anyone has ever committed suicide in the home. Under Georgia law, what are David's options?
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Previous Question
A listing agent in Montgomery discovers during a showing that the seller's home has a cracked foundation that the seller failed to include on the Alabama seller disclosure form. The seller insists the crack is cosmetic. What is the listing agent's most appropriate course of action under Alabama law?
Next Question
Kevin sells his Tuscaloosa home to Diana. Kevin completed the Alabama seller disclosure form but deliberately omitted a known roof defect that had caused water damage to two upstairs bedrooms. Diana discovers the damage six months after closing and sues Kevin. Which of the following most accurately describes Kevin's potential liability under Alabama law?