A Georgia licensee learns that a listed property was the site of a violent crime and also discovers evidence of significant foundation cracking during a showing. Under O.C.G.A. § 44-1-16, how should the licensee handle these two issues?
Correct Answer
D) The licensee should treat the stigma issue and the known structural defect as separate categories, because the stigma safe harbor does not eliminate the duty to disclose known material physical defects.
O.C.G.A. § 44-1-16 provides a safe harbor for certain stigma-related facts (such as crimes or deaths on the property), but this protection does not extend to known material physical defects like foundation damage. These are distinct disclosure categories, and licensees must continue to disclose known physical problems regardless of any stigma protections.
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Related Topics & Key Terms
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Flood zone disclosure requires informing buyers whether a property is located in a designated flood zone as mapped by FEMA. Properties in high-risk flood zones may require mandatory flood insurance.
HOA disclosure requires informing buyers about the existence, rules, fees, financial health, and restrictions of a homeowners association governing the property. This information helps buyers understand their obligations before purchase.
The Lead-Based Paint Disclosure is a federally mandated disclosure required for all residential properties built before 1978. Sellers and landlords must disclose known lead-based paint hazards and provide the EPA pamphlet "Protect Your Family From Lead in Your Home."
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