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?
Correct Answer
D) Kevin may be liable for fraudulent misrepresentation because he knowingly omitted a material defect from the required disclosure form
Under the Alabama Seller Disclosure Act (Code of Alabama §6-9-142) and Alabama common law principles of fraudulent misrepresentation, a seller who knowingly omits a material defect from a required written disclosure form can be held liable for fraud or misrepresentation. The deliberate omission of a known material defect — the roof damage causing water intrusion — goes beyond mere negligence and constitutes intentional concealment, which supports a fraud claim. Alabama courts have recognized that a seller's knowing failure to disclose a material defect exposes the seller to damages beyond just repair costs.
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Previous Question
Under the Alabama Seller Disclosure Act, all of the following transactions are exempt from the written seller disclosure requirement EXCEPT:
Next Question
A buyer's agent in Mobile is representing a client who is purchasing a home from a seller who has completed the Alabama seller disclosure form. The form indicates no known defects, but during a walkthrough the buyer's agent notices visible signs of termite damage in the garage. The seller claims to have no knowledge of any termite activity. What is the buyer's agent's duty under Alabama law?